Is that really the best you can do? Pathetic.
Pay down Mortgage or invest?
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Is that really the best you can do? Pathetic.
Yes, that is the best he can do. You have to forgive him, the realization that he has been sold a bill of goods over this whole "buy and hold" scam is a bit unsettling. I must admit that when I first realized what a scam it was, I was more than a little ticked. But, instead of pouting about it, I learned how the game is played. Does that mean I win every trade? Nope, but I win more than I lose and I minimize my losses. I don't stay in losing trades and I bank my profits.
Sorry-guess I'm not as cool as you-you're so clever. But you're also a total douche
I am currently have $600,000 in my retirement account and another $650,000 in my investment account. My current mortgage balance is around $385,000 (on a house worth $715,000). Trying to decide if I keep liquid on the $650,000 and look to move heavy in the market if we see a big drop or if I just pay off the mortgage. With increased cash flow, I could build the investment account back up in a reasonable period of time.
Personally, I'm a big believer in being debt free, completely, including mortgage. Peace of mind, and true financial freedom. Some would probably say it depends on your age..which I"m just guessing, but you're probably 45-50 based on the level of worth you have, if younger than 45, you're way ahead of the game. I know you get the tax write off, but it's really not that big if you run the numbers. It's overplayed. I do think the market will continue to be a bumpy ride and I'm a market guy as well. Love it. I personally am sitting on the sidelines again waiting to see how the Euro debt crisis plays out along with the 11/23 deadline for the 1.6T debt reduction in the US, which word on the street is they need to actually cut 4T to avoid another credit downgrade, which killed the market last time that occurred. So, I do think the market is headed back down personally. I sold almost everything at the end of October. October was the best month in 37 years, I'd say were due to give some of that back. I'll start tip toeing back in when I see some great buys. Paying off the mortgage increases monthly cash flow and it diversifies you a little more. Paying off that mortgage is like earning around 3.5% immediate return (assuming 4.25 - 4.5% interest rate) after tax break of mortgage deduction, so on 385K, you're getting 11K or so a year, $900 month return versus giving it to the bank. Not too shabby. No one can take the paid off mortgage away from you like the market can quickly take away your gains. Hopefully my ranting helps you think about some of the advantages and aids you in your decision making process. It's a great predicament to be in. Good luck.
First your house isn't worth $715,000 unless someone writes you a check for it.
Second, I would opt to pay off the mortgage. You can't beat the economic freedom of being debt free. I am debt free and I have no financial worries. I am not rich by any stretch, but I consider myself very comfortable and keep my living expenses low but still enjoy life.
Debt is a prison.
Thanks to the last 2 posters. The mortgage will be paid off by the end of the month.
You keep referring to this "buy and hold" shit. That dude hasn't been on the site forever. Move on already.
How do you know? Do you have this amazing gift of telling one Annonypussy from another? I don't. Do tell.
Last post on the subject was in late June. Perhaps that's a clue. But keep arguing about it.
Because most reps do not have any money to invest. They usually blow every dime they make.
Once you have a fully funded emergency fund, the correct answer is pay off the house. Reduce your risk then invest.
I am on track to have the mortgage paid off by August. I will the have $270k in my after tax account, $700k in retirement accounts and no debt. As I am only 48, I still have a number of years to pile up more savings and I will also have the benefit of a pension and retirement healthcare benefits.
Life is good!
Life is good!
It is almost always the better play to keep your cash flow strong, and that would favor NOT paying down the mortgage.
Now is a good time to invest in real estate IMO. A condo, with low maintenance, would be a solid move.
Guns and ammo are also good investments.
Paying off your mortgage INCREASES your cash flow. First, max out retirement. Then pay off the mortgage. After that, invest to build wealth. Markets will go up and down. You can never predict where they will be when you have an emergency, face a job loss, etc. Without a mortgage, expenses are typically low and an emergency savings account will go a long way.
Damn. All you fools seem to be financially challenged. Haven't any of you taken a freshman finance class in college? When inflation kicks in (and it will bigtime in 12 to 18 months) those who have a fixed mortgage rate @ 5.5% or less will be grinning like Cheshire cats. You'll be paying off that old loan with cheap dollars. The banks will fracking hate you. You will be getting requests to pay off your loans twice a week. If they send you a prestamped envelope and request a reply just write down "F off" and mail it back to them.
Those of you with adjustables are screwed and it's best to pay that puppy off if you can raise the cash IMO.
But then what do I know. I'm just another slob on the street. Whatever you decide, good rots of ruck!
Those of you with adjustables are screwed and it's best to pay that puppy off if you can raise the cash IMO.
But then what do I know. I'm just another slob on the street. Whatever you decide, good rots of ruck!
Damn. All you fools seem to be financially challenged. Haven't any of you taken a freshman finance class in college? When inflation kicks in (and it will bigtime in 12 to 18 months) those who have a fixed mortgage rate @ 5.5% or less will be grinning like Cheshire cats. You'll be paying off that old loan with cheap dollars. The banks will fracking hate you. You will be getting requests to pay off your loans twice a week. If they send you a prestamped envelope and request a reply just write down "F off" and mail it back to them.
Those of you with adjustables are screwed and it's best to pay that puppy off if you can raise the cash IMO.
But then what do I know. I'm just another slob on the street. Whatever you decide, good rots of ruck!
Inflation doesn't mean that investment options will give you larger returns, it just means goods will cost more.
Put it this way, would you borrow from your home to invest? Only an idiot would.
Many states have laws that protect assets, such as home equity, in the event of lawsuits. Additionally, when you have no debt, you have significant flexibility with a much heavier monthly cash flow.