Quote:
Originally Posted by gratefulparrot
Again educate me. If I pay the bank interest, how do I gain 8+% profit, versus the investment of what I would have paid in interest to the bank and investing that in a mutual fund?
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My investment portfolio generates 8+% which is cash, money, profit. I pay the bank 4.25% interest on my mortgage which gives me a net on the positive side of a minimum 3.75%. It depends on how your portfolio performs and your age. I took a 30 year mortgage which means I will be dead for many years as will my wife so we will never pay more than the payoff at death of the principle. Hey, everyone has a different view of security and how to handle their money so I'm not making a judgement on anyone just stating that in my opinion. If you can net positive cash flow take advantage of it and at our age, use the cash flow to enjoy life, Don't reduce the value (or the ability to increase the value) of your portfolio's by not having manageable debt. Just my opinion.