Show me the Money - Oversaving Cavanman

Re: family home

You mean even EDDIE HOBBS can't predict the equity markets! I'm gobsmacked!!!

;)
 
Above

I'd guess that that many of his share options become live again once the share price hit $24, and based on the outside meeting, the advice was given in the Summer, when Intel was hovering in the low twenties. There's never a perfect moment to sell, it only becomes clear after the event, so phased encashment would make sense. I gree with Brendan about the stock specific risk being taken.
 
Perceptions

It's always interesting to look at the furniture in the background. These people had nice furniture and nice kitchen fittings. The lady indicated during the programme that at one time she used to "spend". I guess when Intel share were riding high they spent with the secure knowledge that they had their Intel shares to fall back on. I think it must have come as a great shock to them to see the value of their nest egg drop in value. Their reaction must have been "God, we are losing everything". When in fact they weren't. It strikes me that they had no one to talk to and this fear multiplied tenfold.
Having said that my good wife thought that these people were really on an ego trip appearing on the show.
 
My home is my investment.

Many years ago I with no mortgage I had the choice of investing in 3 or 4 apartments or move home and get a bigger, better home in a better location. I chose to move home.
I am pleased to say that I feel I have made the right decision. The value of my new home has increased 8 fold in about 10 years. If I sell I have no CGT. I have also had the comfort of a better and more comfortable home for the past 10 years.
On the other hand if I had invested in the apartments I imagine that I would have ended up with the same pot of money at the end but with the headaches of being a landlord, CGT and a less comfortable home over the past ten years.
The also would have been the temptation of giving/selling at reduced price, to each of my children one of the apartments as each got married.
 
Re: My home is my investment.

Hi Sludge

You got there before me. Too many people invest in a separate property without comparing it to the advantages of trading up.

On the positive side of a separate property:
1 - you can write the interest off against the rent for tax purposes
2 - you get a cash income from it
3- if you need cash, you can sell it, whereas you can't sell half your house.

On the positive side of trading up:
1) you have a far nicer house - maybe saving a lot of commuting.
2) your gain is tax free
3) you have no adminisitrative hassle

Depending on what assumptions you make for gains in the future, the net benefit from owning a rental property might not be that much

Brendan
 
Re: family home

Every time I read this topic heading I see "overspending CAVEMAN"! :lol
 
any mention that those buying intel shares are also currency speculators. the usd has weakened by over 50% since 1998, wiping out 50% of share value alone since then
 
Fx Movement

Intel staff watch the fx market and the swings in the Dollar / Euro just as avidly as the share. I don't think theres a European investor in direct US assets unaware of this factor.
 
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