4 ms·

You say that now, but once you actually are in such a position and you realize that you could pay off your college debt plus your mortgage in 2-3 years, things

by t_mann 5y ago

You say that now, but once you actually are in such a position and you realize that you could pay off your college debt plus your mortgage in 2-3 years, things might change in your mind.

lr4444lr 5y ago
At the companies where the bonuses could reasonably be that high, I'd probably rather have stock options - because those are contractually mine.
- coliveira 5y ago
  No company will give you options from day one. They will give them over several years if you meet their expectations, which is essentially the same as a bonus.
  - lr4444lr 5y ago
    Yes, obviously, but what is promised to me is still contractual in time and amount precisely.
ipaddr 5y ago
When you count on that bonus that came last year it could mean that mortgage goes under. Making a lot of money is great until it doesn't come for whatever reason.
- t_mann 5y ago
  By 'paying off your mortgage' I obviously meant repaying the principal plus interest in full, not meeting your regular payments. It should go without saying that you shouldn't take out a mortgage where you can't afford the regular payments out of your regular income. Banks are very unlikely to grant you such a loan anyway.
vsareto 5y ago
Yearly bonuses can carry a large amount of risk for the time and work invested, especially if you've traded base salary for it (which could go into investments). And the bonuses are not as transparent or regulated as even risky investments. The real problem with them is the year long bet. Do it quarterly or monthly, and I'm all for it. There are situations where it definitely makes sense, like if you're pretty secure without the bonus, you're friendly with the people deciding the bonuses, the base salary is high enough, there is some guaranteed minimum bonus, and you don't burn out trying to attain/maximize it. Ultimately, you can't get away from the fact that some financial health is at the whim of persons within the company and frankly they just aren't going to care as much about it as you do. It's very much a gamble instead of a solid investment.
supernovae 5y ago
that’s gambling, not wages.
astrange 5y ago
That’s not a problem in California because it’s not possible to buy anything to get the mortgage in the first place.
- paulryanrogers 5y ago
  So all houses are cash only?!
  - astrange 5y ago
    They are if you’re competing with someone paying cash. But that doesn’t matter either, the question is if there’s any for sale in the first place.
  - newshorts 5y ago
    Nah. A buyer can easily outbid an all cash offer. In fact, if you offer 100% over asking price you’re almost guaranteed to win ;)
    - wan23 5y ago
      Good luck explaining to the bank why you want to borrow 2x what the home is actually worth. When you need a mortgage you’re limited by what the bank’s appraiser thinks the home should sell for.

by t_mann 5y ago

You say that now, but once you actually are in such a position and you realize that you could pay off your college debt plus your mortgage in 2-3 years, things might change in your mind.

lr4444lr 5y ago

At the companies where the bonuses could reasonably be that high, I'd probably rather have stock options - because those are contractually mine.

coliveira 5y ago
No company will give you options from day one. They will give them over several years if you meet their expectations, which is essentially the same as a bonus.
- lr4444lr 5y ago
  Yes, obviously, but what is promised to me is still contractual in time and amount precisely.

ipaddr 5y ago

When you count on that bonus that came last year it could mean that mortgage goes under. Making a lot of money is great until it doesn't come for whatever reason.

t_mann 5y ago
By 'paying off your mortgage' I obviously meant repaying the principal plus interest in full, not meeting your regular payments. It should go without saying that you shouldn't take out a mortgage where you can't afford the regular payments out of your regular income. Banks are very unlikely to grant you such a loan anyway.

vsareto 5y ago

Yearly bonuses can carry a large amount of risk for the time and work invested, especially if you've traded base salary for it (which could go into investments). And the bonuses are not as transparent or regulated as even risky investments. The real problem with them is the year long bet. Do it quarterly or monthly, and I'm all for it. There are situations where it definitely makes sense, like if you're pretty secure without the bonus, you're friendly with the people deciding the bonuses, the base salary is high enough, there is some guaranteed minimum bonus, and you don't burn out trying to attain/maximize it. Ultimately, you can't get away from the fact that some financial health is at the whim of persons within the company and frankly they just aren't going to care as much about it as you do. It's very much a gamble instead of a solid investment.

supernovae 5y ago

that’s gambling, not wages.

astrange 5y ago

That’s not a problem in California because it’s not possible to buy anything to get the mortgage in the first place.

paulryanrogers 5y ago
So all houses are cash only?!
- astrange 5y ago
  They are if you’re competing with someone paying cash. But that doesn’t matter either, the question is if there’s any for sale in the first place.
- newshorts 5y ago
  Nah. A buyer can easily outbid an all cash offer. In fact, if you offer 100% over asking price you’re almost guaranteed to win ;)
  - wan23 5y ago
    Good luck explaining to the bank why you want to borrow 2x what the home is actually worth. When you need a mortgage you’re limited by what the bank’s appraiser thinks the home should sell for.