So, the fed cut 50 base points and the stock market went totally apeshit. The up shot is that the last recorded 4.8% return on my 401k (and realistically bottomed out 2.5% return) has turned into a 7.5% return. I took the opportunity to ditch my company stock (the only individual stock in my 401k, because they only pay their 3% match out in company stock. Yeah. Awesome.) and roll that money into the VIIIX (Vanguard Institutional Index Plus), which I figure is a fine place for it to be. I’m also making steady progress on my car and house loans, which is pleasant to watch. I’d still like to get rid of the car loan, but progress is better than nothing.
I was talking to a couple people lately who are getting the short end of the stick on this whole sub prime thing, and I’m glad that I didn’t take a loan with the expectation that I could refinance (as I very nearly did when I was initially home shopping). The whole situation smacked a little of too-good-to-be-true, and it turns out it was. Before any of you thinks that I managed to dodge this bullet through any sort of foresight or intelligent deduction, let me assure you, this was a situation where the ground moved beneath my feet and I lucked out entirely. I was getting ready to buy a 270,000 house with my grandma (there was some talk of her helping out with the bulk of the payment, but that had eroded to ‘some’ of the payment by the time we were talking about a buy), and she died right after we had the home inspection done. Simple as that.
Any man who does not credit luck with a role in his success is either profoundly vain or profoundly nearsighted, and in either case is profoundly wrong.