Pay down Mortgage or invest?

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Anonymous said:
keep holding what?

keep giving worthless advice.
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Yep, it was really worthless that I called the market tanking. It really wasn't hard if you follow the signs.

1) S&P 500 was bumping up against resistance and trading sideways

2) June has been a down month for the past 6 years

3) A very distinct Head and Shoulders pattern had formed

4) And most importantly the Fed announced they were going to stop massively printing dollars, which is what fueled the boom to begin with. Whenever the Fed is loose with its monetary policy, it encourages investment in riskier assets like stocks. The recent run was built on vapor not fundamentals.


But, you have been told that Buy and Hold is the way to go because the market has returned 10% a year. Of course it has a negative real rate of return since 2000, but that won't stop you from believing and continuing to buy while the smart people are selling.

You have been told that a house is a great investment, and have been convinced that having a 30 mortgage is a great thing. So you huy something that probably is 90% of your assets and is completely illiquid. They also convinced you that it is a super great deal for you beacause they are giving you a big ole tax deduction. So you are really making out like a bandito.


I used to believe all of these things too, but then I grew up.

Actually I am glad there are suckers like you who believe in Buy and Hold, and think they are "dollar cost averaging" buy continuing to buy when the market goes south. Someone needs to buy while I am selling and getting my profits
 






I Love America said:
Yep, it was really worthless that I called the market tanking. It really wasn't hard if you follow the signs.

1) S&P 500 was bumping up against resistance and trading sideways

2) June has been a down month for the past 6 years

3) A very distinct Head and Shoulders pattern had formed

4) And most importantly the Fed announced they were going to stop massively printing dollars, which is what fueled the boom to begin with. Whenever the Fed is loose with its monetary policy, it encourages investment in riskier assets like stocks. The recent run was built on vapor not fundamentals.


But, you have been told that Buy and Hold is the way to go because the market has returned 10% a year. Of course it has a negative real rate of return since 2000, but that won't stop you from believing and continuing to buy while the smart people are selling.

You have been told that a house is a great investment, and have been convinced that having a 30 mortgage is a great thing. So you huy something that probably is 90% of your assets and is completely illiquid. They also convinced you that it is a super great deal for you beacause they are giving you a big ole tax deduction. So you are really making out like a bandito.


I used to believe all of these things too, but then I grew up.

Actually I am glad there are suckers like you who believe in Buy and Hold, and think they are "dollar cost averaging" buy continuing to buy when the market goes south. Someone needs to buy while I am selling and getting my profits
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Who told you I believe in buy and hold?

Stop talking as if you know what you are talking about.
 






I Love America said:
Yep, it was really worthless that I called the market tanking. It really wasn't hard if you follow the signs.

1) S&P 500 was bumping up against resistance and trading sideways

2) June has been a down month for the past 6 years

3) A very distinct Head and Shoulders pattern had formed

4) And most importantly the Fed announced they were going to stop massively printing dollars, which is what fueled the boom to begin with. Whenever the Fed is loose with its monetary policy, it encourages investment in riskier assets like stocks. The recent run was built on vapor not fundamentals.


But, you have been told that Buy and Hold is the way to go because the market has returned 10% a year. Of course it has a negative real rate of return since 2000, but that won't stop you from believing and continuing to buy while the smart people are selling.

You have been told that a house is a great investment, and have been convinced that having a 30 mortgage is a great thing. So you huy something that probably is 90% of your assets and is completely illiquid. They also convinced you that it is a super great deal for you beacause they are giving you a big ole tax deduction. So you are really making out like a bandito.


I used to believe all of these things too, but then I grew up.

Actually I am glad there are suckers like you who believe in Buy and Hold, and think they are "dollar cost averaging" buy continuing to buy when the market goes south. Someone needs to buy while I am selling and getting my profits
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And why are you on CP at 5:53am?
 






Anonymous said:
I agree. The DOW is flawed, with unemployment so dam high. That money must be coming from foregin investors or because people don't know what to do with their money, so, they just throw it in the stock market.

A home is not in an investment by the way, because of the liability associated with a home (repairs, taxes, insurance), so paying it down is just not a good move.

Also, you can't count on your company keeping your around. Getting downsized is a way of American life, so it is best to keep the cash flow strong, and prepare for the worst.

Once Obama is gone, things can do nothing but get better. This guy has done more to destroy our way of life that any other President, with his anti-capitalism policies, his bailouts, and printing money. Welcome to Change!
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Another idiot who expects the President to generate the economy.
 






Anonymous said:
It is hard to predict if the market (or other investments) will go up. Paying off a mortgage will eliminate the monthly mortgage payments. As such, when times are tough, this takes away a big worry when it comes time to pay the bills.
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So you are saying that giving a bank all your cash to pay off your house is a good way to prepare for needing cash to pay the bills?

That makes sense.
 
























I Love America said:
So you think I can tell one Anonypussy from another? Maybe you should register than I can tell which idiot I am talking too.
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You sure seemed to act like you can. Maybe I'm the guy who thoroughly showed that, in regard to you and your so-called expertise of finance, the Emperor has no clothes.

Maybe I'm the guy who noted that you are a blowhard.

Maybe I'm neither but have jumped in here to say that I enjoy watching you incessantly try to defend yourself.

If you hadn't tried to present yourself as a know-it-all, all of this could have been avoided.

"But wait, there's a head-and-shoulders pattern forming! The market is trading sideways!! I see it all coming ahead of time to the tune of a 7% average return!!!"

Please keep it coming.
 






Anonymous said:
You sure seemed to act like you can. Maybe I'm the guy who thoroughly showed that, in regard to you and your so-called expertise of finance, the Emperor has no clothes.

Maybe I'm the guy who noted that you are a blowhard.

Maybe I'm neither but have jumped in here to say that I enjoy watching you incessantly try to defend yourself.

If you hadn't tried to present yourself as a know-it-all, all of this could have been avoided.

"But wait, there's a head-and-shoulders pattern forming! The market is trading sideways!! I see it all coming ahead of time to the tune of a 7% average return!!!"

Please keep it coming.
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Or maybe you are just another jealous anonypussy following the sheep with buy and hold clinging to Sharpes paper :D
 






Anonymous said:
You sure seemed to act like you can. Maybe I'm the guy who thoroughly showed that, in regard to you and your so-called expertise of finance, the Emperor has no clothes.

Maybe I'm the guy who noted that you are a blowhard.

Maybe I'm neither but have jumped in here to say that I enjoy watching you incessantly try to defend yourself.

If you hadn't tried to present yourself as a know-it-all, all of this could have been avoided.

"But wait, there's a head-and-shoulders pattern forming! The market is trading sideways!! I see it all coming ahead of time to the tune of a 7% average return!!!"

Please keep it coming.
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On a separaate note Mr Anonypussy, I never claimed to know it all, but I do appear to know more than you. You can claim otherwise, but you will have to do better than just say others are wrong


Keep an eye on the S&P today. It is bumping up against key resistance at 1300. If it can break through and hold, maybe the slide is over. Or maybe this is just a dead cat bounce. We will see :D
 






I Love America said:
On a separaate note Mr Anonypussy, I never claimed to know it all, but I do appear to know more than you. You can claim otherwise, but you will have to do better than just say others are wrong


Keep an eye on the S&P today. It is bumping up against key resistance at 1300. If it can break through and hold, maybe the slide is over. Or maybe this is just a dead cat bounce. We will see :D
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How many hours a day do you work to get a 7% return?
 












There is no doubt in the answer: pay off the mortgage. Debt equals risk. You don't want to do it at the expense of having no cash on hand to handle an emergency so put some rainy day money away and work on the mortgage.

Just think of how much you'll have to invest once your house is paid off.
 






Anonymous said:
[ QUOTE ]
The investment in your house just like the market over the long term is a sure thing. As a matter of fact the return in the market over the years has been far superior that the return of your house. Market about 8.5% house about 5.5%

[/ QUOTE ]

Not my house. Not where I live. I live in Fountain Hills, AZ. Nothing can be built behind me. I will have a paid off, million dollar home in 6 years(got a 15 yr loan at 4.75 and pay extra on the principle) The value of my home doubled in the last 2 years and because Baby Boomers are moving here by the droves, nothing is going to happen to the value of my house. When I get this paid off, I will have an extra 4-5K to invest in what looks right at that time. But the big thing that no one can put a price on, is that having the pressure off from any debt whatsoever does something to your SOUL... you can look at life and your options in a totally different way. Mathematics may say one thing, but your soul will say something quite different. Then, if pharma goes bust on me - so what
grin.gif
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Wonder where this guy is now? Hi million dollar house in AZ (hit hardest in real estate) isn't worth squatt now. Bet he went under and got forclosed.
 






Anonymous said:
Wonder where this guy is now? Hi million dollar house in AZ (hit hardest in real estate) isn't worth squatt now. Bet he went under and got forclosed.
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There was a study published a couple of weeks ago that showed that over the last 30 years housing in Commiefornia only returned 3% a year. Your house is not investment. The fact that people have been led to believe this is the ultimate scam of the Bankstas.
 






Anonymous said:
There is no doubt in the answer: pay off the mortgage. Debt equals risk. You don't want to do it at the expense of having no cash on hand to handle an emergency so put some rainy day money away and work on the mortgage.

Just think of how much you'll have to invest once your house is paid off.
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If you wait until your house is paid off to invest you will the lose the biggest factor when it comes to investing- time. You will never be able to catch up with someone who started early even if you invest twice or three times as much.
 
























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