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Investment VS Debt
- Thread starter myminitrading
- Start date
Quote from GTS:
Its certainly better than quoting some tired cliche from your grandfather.
Well that tired cliche has stood the test of time. And complex strategies are nothing more than gimmicks to generate revenue for the banks and exchanges that create them.
Warren buffets strategy seems to do well.
Quote from Smart Money:
To give you an example, at the point that Bill Gates was worth $10 million dollars (like back in the 1980s), I'm willing to bet that if he went to a financial advisor they would have told him, "You've got too much tied up in Microsoft stock and you need to diversify...sell all but 10% of it and buy stock from other companies". See what I mean? You can't point to one VERY wealthy person who didn't get there by taking a big, undiversified, bet. Now, if you're getting up there in age or something...sure...diversify like crazy!
SM
On the other hand, how many BG's are there compared to Enron employees who lost their retirement?
No it hasnt. Most people do not accelerate their mortgage payoff in lieu of investing and historically, long-term investing in equities has produced returns that have outpaced mortgage rates.Quote from myminitrading:
Well that tired cliche has stood the test of time.
Red herring. Your initial post asked whether it made more sense to invest vs accelerate paying off your motgage. No one has said that the investment must take the form of complex strategies.And complex strategies are nothing more than gimmicks to generate revenue for the banks and exchanges that create them.
Until I read an actual quote from Warren that says he personally advocates paying off a mortgage faster vs investing I will assume that is something you just made up in a lame attempt to align yourself with someone with some credibility.Warren buffets strategy seems to do well.
Quote from GTS:
No it hasn't. Most people do not accelerate their mortgage payoff in lieu of investing and over the long-term past investing has outpaced mortgage rates.
Red herring. Your initial post asked whether it made more sense to invest vs accelerate paying off your mortgage. No one has said that the investment must take the form of complex strategies.
Until I read an actual quote from Warren that says he personally advocates paying off a mortgage faster vs investing I will assume that is something you just made up in a lame attempt to align yourself with someone with some credibility.
Well I can see were this is going, The saying from my grandfather was, "Work hard, stay out of debt, save and invest wisely"
It appears you have gotten a little worked up and your emotions are hot, relax.
So taking this saying literally, your grandfather advocates waiting until you have enough cash to buying your first car without a loan and your house without a mortgage?Quote from myminitrading:
Well I can see were this is going, The saying from my grandfather was, "Work hard, stay out of debt, save and invest wisely"
Like I said before, pithy sayings shouldn't be the basis for your financial planning. Saying "invest wisely" is about as useful as saying "buy low and sell high". The devil is in the details.
Read: http://www.ricedelman.com/planning/home/rule21.asp
"Never Own Your Home Outright. Instead, Get a Big 30-year Mortgage, and Never Pay It Off â Regardless of Your Age and Income"
Quote from Eliot Hosewater:
On the other hand, how many BG's are there compared to Enron employees who lost their retirement?
Yeah, but they are a minority compared to folks who work in similar sized companies who do the same thing. You make a good point, but bear in mind I tempered my position by saying it depends on your age. Folks who were in their 20's, 30's, and early 40's who were betting big on Enron weren't stupid. Taking some chances in your youth and then playing conservative later after you've accumulated something is a decent life strategy. But the folks who were in their late 50's and early 60's who lost everything should have taken precautions. I work for a sound company that offers a stock purchasing plan at a discount. Would I put all my eggs in one basket like that late in life? No way.
Quote from GTS:
No it hasnt. Most people do not accelerate their mortgage payoff in lieu of investing and historically, long-term investing in equities has produced returns that have outpaced mortgage rates.
Red herring. Your initial post asked whether it made more sense to invest vs accelerate paying off your motgage. No one has said that the investment must take the form of complex strategies.
Until I read an actual quote from Warren that says he personally advocates paying off a mortgage faster vs investing I will assume that is something you just made up in a lame attempt to align yourself with someone with some credibility.
Note to self: Don't argue with GTS.
Quote from GTS:
So taking this saying literally, your grandfather advocates waiting until you have enough cash to buying your first car without a loan and your house without a mortgage?
Like I said before, pithy sayings shouldn't be the basis for your financial planning. Saying "invest wisely" is about as useful as saying "buy low and sell high". The devil is in the details.
Read: http://www.ricedelman.com/planning/home/rule21.asp
"Never Own Your Home Outright. Instead, Get a Big 30-year Mortgage, and Never Pay It Off â Regardless of Your Age and Income"
Your getting confused, first of all a home is the biggest investment most will make, get it investment.
Pithy? you have to start somewere.
I thought you said "Stay out of debt"?!? Must have missed the footnote that said its ok to incur debt for investment purposes. Maybe that was your grandmothers saying?Quote from myminitrading:
Your getting confused, first of all a home is the biggest investment most will make, get it investment.
I'm not confused, its you trying to wrangle a workable financial strategy out of your grandfathers one-liner that has you doing contortions.