topic Re: Diversifying - To Mexico, Metals, Bitcoin, and Solar in Mortgage Loans

Diversifying - To Mexico, Metals, Bitcoin, and Solar

Sk323i — Sun, 23 Aug 2020 05:29:15 GMT

Alright - I saw COVID coming early.

I refinanced at the beginning of COVID - and closed a 209K loan on a 270K house for 3.5%.

I'm not upset about it - I could have gotten lower rate - but i'm carrying a fair amount of student loan debt.

Mortgage payment is 1100.

I am looking to invest and diversify.

I only have about 1000 worth of bitcoin - but i'm looking to increase my position to 2-3K.

I have about 1000 worth of precious metals - but looking to increase to 2-3K worth of silver, and hopefully try to buy some cheap gold.

I'm not looking at LAND in MEXICO - 50K for a nice lot by the beach.

QUESTION: Who else is diversifying like this?

What is the consesus on buying land or real estate in Mexico/

I would buy a nice Ocean View lot for 50K, and build a nice house over 5-8 years - either financed or cash.

I just bought solar for my primary residence, because Electric rates are Increasing 4% a year.

I will need to buy solar for house in Mexico too. Might have to buy a trailer to live in for a period out there on my land, while I build house.

Anybody have any suggestions?

Income: 110,000

Credit Score is approx. 670.

Auto Debt: 40K (2 vehicles - 20K each.)

Student Loan Debt: 50K

Misc Credit Revolving Debt - 8K.

Mortage Debt: 209K

Re: Diversifying - To Mexico, Metals, Bitcoin, and Solar

sxa001 — Sun, 23 Aug 2020 22:10:12 GMT

This is a matter if opinion and not meant as anything other than friendly advice. Before you start looking at investment property or additional avenues of investments, especially potentially risky ones like Bitcoin I would pay off the student loan debt and credit card debt. The cars I am wishy-washy on personally, I grew up with the philosophy that having a car payment for a reliable car is okay, but I would probably consider getting that down to just one car payment.

I am assuming you were planning to pay cash for the lot in Mexico which is why I am suggesting that 50K would be better spent getting rid of obligations.

I am personally always hesitant to come off as arrogant when I myself haven't always made the best decisions financially and in the end I do feel people should spend their own money the way they see fit.

Re: Diversifying - To Mexico, Metals, Bitcoin, and Solar

AZ-Jeff — Sun, 23 Aug 2020 22:41:27 GMT

I also agree with @sxa001 - paying off student loan and credit card debt should be more of a priority. It doesn't hurt to dream and have a goal of having a casa in Mexico, but I'd focus on the debt before investing. Just my .02

Re: Diversifying - To Mexico, Metals, Bitcoin, and Solar

Sk323i — Mon, 24 Aug 2020 06:09:26 GMT

@AZ-Jeff wrote:
I also agree with @sxa001 - paying off student loan and credit card debt should be more of a priority. It doesn't hurt to dream and have a goal of having a casa in Mexico, but I'd focus on the debt before investing. Just my .02

I definitely understand that perspective - i've been trying to follow the Dave Ramsey method and get rid of all debt.

The reality is -- in a Post COVID world, where the possibility of another economic collapse in the US is right around the corner - retiring in Mexico is more desirable to me.

I'm not too concerned about falling behind on student loans, auto loans, etc.

I'd rather default on those - and have a fully paid off house in Mexico and be able to live off minimal income.

It's quite apparent that in the US you have to make 100K a year to make any upward movement and live in the upper middle class.

I'm sick of the US rat race -- i see expats moving to more livable places like Mexico, Costa Rica, Puerto Rico, Dominican Republic, etc.

I'm trying to use my income and money wisely.

To me - paying off student loans and auto loans are not as important - because i'm not too concerned about Credit Unions, and the Student Loan companies sending me to collections. IN a worst case scenario - i could be living in Mexico, making a little bit of money on the side, and paying off a payment plan on the student loans and auto loans for the rest of my life. Having a fully paid off home in Mexico sounds ideal.

I can rent my house in Arizona - and it would cover alot of my bills.

Re: Diversifying - To Mexico, Metals, Bitcoin, and Solar

Anonymous — Mon, 24 Aug 2020 19:10:02 GMT

Which Dave Ramsey baby step is fleeing to Mexico to get out of paying your debts? I must have missed that one!

Re: Diversifying - To Mexico, Metals, Bitcoin, and Solar

Sk323i — Fri, 28 Aug 2020 04:26:57 GMT

its the escape plan if the US economy goes to **bleep** - were near negative interest rates and Fed is promoting inflation strategies.

I cant pay down debt forever - a bigger correction is coming -- i'm trying to minimize risk now.

Reality is i wont be debt free for 10 years - and the scary part is if I lost my income for 6 - 12 months - i'd be homeless.

If there are no jobs in America - where will everyone go?

Re: Diversifying - To Mexico, Metals, Bitcoin, and Solar

NC_Mtg_Loaner — Fri, 28 Aug 2020 15:46:01 GMT

@Sk323i wrote:
its the escape plan if the US economy goes to **bleep** - were near negative interest rates and Fed is promoting inflation strategies.

I cant pay down debt forever - a bigger correction is coming -- i'm trying to minimize risk now.

Reality is i wont be debt free for 10 years - and the scary part is if I lost my income for 6 - 12 months - i'd be homeless.
If there are no jobs in America - where will everyone go?

Interesting.

Why do you say that you can't pay down debt forever? Don't you realize you can pay it off?

I've checked my 401k portfolio and the majority of funds in it, small cap, mid-cap, emerging markets, growth, etc. are still up > 20% over the past year and YTD which has me questioning my transfer of half the portfolio into Cash & Govt. Securities a month ago because i too expect a correction of some kind. Of course, i'm not really a fan of metals, but I do like (and hold) the stocks of mining co's and some additional sectors stocks that I feel are pretty stable (and staple) plays in this new economy.

Interest rates have gone lower than where they were earlier this year and you should refinance the $200k loan to something below 3% by now.

I think Dave Ramsey is a bit too far to the conservative side when it comes to his debt plans, but his goals are typically aggressive enough that one who strives to reach them but still comes up short can find themselves in a rather good position.

Personally, how you choose to live your life and whether you fall victim to conspicuous consumption are some of the many challenges we all face, but you just need to be sure you are happy with your selections and live accordingly. Pick a plan and stick to it.

I've been to a handful of countries around the world and as messed up as the good o'l USA is, I'd still prefer to live here in retirement in a small, sleepy but active NC mountain community and maintain the ability to travel America as well.

I've been saving for about 20 plus years for retirement, have 6 years left on my 15 year mortgage loan and combined incomes have never been > $100k per year (Don't tell my boss, but I'm not the hardest working LO you'll ever meet... ;-) ) but my wife and I will retire comfortably whenever we want in the next 3-5 years or so unless it remains too easy to keep working like this.....

Re: Diversifying - To Mexico, Metals, Bitcoin, and Solar

Anonymous — Fri, 28 Aug 2020 21:21:44 GMT

I kind of agree, after all one would likely just be trading one Country's problems for another by moving. just as you trade one City's problems for another, there is no perfect place.

While retiring to several other Countries seems nice, you're still a Foreigner in a strange land. And if anything ever happend it's a long way back to your true homeland. We take a lot of things for granted here, things you would possibly come to miss not having after a time.