go to www.wealthtrack.com and watch this weekends video,the head of gsax risk management can only say that 20,30,to 40 years out he will know it was a good investment,connie mack says ,i hope you'll still be around then, he says ,my grandkids will be, this economy is in trouble,like cornered rats waiting for the wrecking ball
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Please rate these long term strategies
- Thread starter Sky123987
- Start date
whats sky saying makes sense, cost of financing using futures is better than by borrowing from C or other US banks.
I think your plan however wont work, its very important to delay tax liabilities as much as possible, having to pay tax using futures every year will kill your long-term returns because of coumpound interest. plus 10% a year is irrealistic for the next decade, that number came from most of the 20 century where growth in the US was high, demographics were good and the government fiscal condition was sound(plus the tech bubble distorted the number). even buffett says expecting 10% is nuts
I think your plan however wont work, its very important to delay tax liabilities as much as possible, having to pay tax using futures every year will kill your long-term returns because of coumpound interest. plus 10% a year is irrealistic for the next decade, that number came from most of the 20 century where growth in the US was high, demographics were good and the government fiscal condition was sound(plus the tech bubble distorted the number). even buffett says expecting 10% is nuts
Quote from Sky123987:
I still don't understand how inflation matters, the question is, do you borrow money w/ your real estate loan or via the stock market, whether inflation is 20% or 1% is not a factor for this ?.
I see how 6.25 goes to 4.375%, however the built interest is still deducible on a futures contract.
You said you have a home loan for 200K and stated the interest. Are you borrowing against this? From what you stated, the responses to keep the home loan are accurate. If your interest rate was an ARM or fixed above 8%, you would have an easier decision, but with inflation increasing, keep the loan.
Maybe restate your OP because it is not being interpreted correctly.
Quote from Trvlwanderer:
You said you have a home loan for 200K and stated the interest. Are you borrowing against this? From what you stated, the responses to keep the home loan are accurate. If your interest rate was an ARM or fixed above 8%, you would have an easier decision, but with inflation increasing, keep the loan.
Maybe restate your OP because it is not being interpreted correctly.
I have a car loan for 3.9% (47k). I have a cd (50k) that covers the balance due locked in for 5%. Do you think I want to pay off the car?