The Lonely Island, the group behind "I'm on a Boat", "I Just had Sex", and other funny music videos has a song called "YOLO" in which Kendrick Lamar gives financial advice. Here it is broken down with my thoughts and analysis.
Take no chances, stop freelancin' Invest in your future, don't dilute your finances
This is almost entirely rhetoric. Not much to disagree with here.
401K, make sure it's low risk
This really depends on your age. If you plan on retiring soon, then yes make sure it's low risk. If your retirement is decades away, putting a decent percentage of your money in a "growth" fund isn't that risky. The market goes up in the long run. Look at this chart of the S&P 500 adjusted for inflation for the past 150 years. No dip means anything if you aren't planning on selling for 30 years.
Then get some real estate (how much?) 4.2%, Thirty year mortgage That's important, that's a great deal
4.2% is actually a pretty good rate. With stellar credit and 20% down, the best rates around were 3.75% when federal interest rates were 0%
And if you can't afford it, don't forge it on your last bill Renting is for suckers right now
This really depends on your market. In some cities, like Boston/Cambridge, rent is so high that a mortgage + tax + insurance cost less than rent, and that's before considering equity. In others, like NYC or New Jersey, real estate taxes alone might exceed your rent (I know that sounds crazy, but it's true). The New York Times has a wonderful tool that takes everything into account and will tell you whether it makes sense or not.
a dependable savings And you'll retire with money in your account
This is just more rhetoric.
Submitted February 22, 2018 at 11:52PM by blackdynomitesnewbag http://ift.tt/2sOQmI3
