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Investment Gurus, Question


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1 minute ago, ArcticCrusher said:

He is though.  If you have a property with a 200K mortgage and 2 million invested separately, do you consider yourself to not be debt free?  Holy shit!!!

150K is not a lot, but certainly enough to look at options.  Paying off the mortgage is good very conservative advice.

Ive always been conservative 1st

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19 hours ago, racer254 said:

 

Being debt free is worth a hell of a lot.  There would be a hell of a lot of less stress in the world if everyone believed that debt free was the way to go.

Manageable real estate debt is fine. I personally detest conventional auto loans and credit card debt. I’m a believer in having liquid, easily accessible assets. I personally like to have $20k on hand.

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9 minutes ago, DAVE said:

Ive always been conservative 1st

Well, I'm a pretty aggressive risk taker.:lol:

Just trying to illustrate other options/ideas but if your asking on FS, you're likely better off to pay the mortgage.

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1 minute ago, ArcticCrusher said:

Well, I'm a pretty aggressive risk taker.:lol:

Just trying to illustrate other options/ideas but if your asking on FS, you're likely better off to pay the mortgage.

Some people aren't good with finances....it never hurts to ask for advice.

 

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26 minutes ago, DAVE said:

Some people aren't good with finances....it never hurts to ask for advice.

 

Nothing wrong with that, however when the best advice has no rewards for those advising, don't expect honest answers.:bc:

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1 minute ago, ArcticCrusher said:

Nothing wrong with that, however when the best advice has no rewards for those advising, don't expect honest answers.:bc:

Correct, but it can give you a chance to look at things in a way you may not have before.

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6 minutes ago, ArcticCrusher said:

Nothing wrong with that, however when the best advice has no rewards for those advising, don't expect honest answers.:bc:

My answer was honest and what ive done. :lol:

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11 minutes ago, steve from amherst said:

Correct, but it can give you a chance to look at things in a way you may not have before.

Best to educate yourself and research.

6 minutes ago, DAVE said:

My answer was honest and what ive done. :lol:

Same.

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15 hours ago, ArcticCrusher said:

He is though.  If you have a property with a 200K mortgage and 2 million invested separately, do you consider yourself to not be debt free?  Holy shit!!!

150K is not a lot, but certainly enough to look at options.  Paying off the mortgage is good very conservative advice.

I missed the part about having 2 million separately invested. 

I thought his choice was between having 150 grand that he invested or using the money to pay off his mortgage.

If he has 2 million cash he's fine either way.

But if he invested 150 grand and interest rates climb while the stock market tanks, then he won't be fine.  He'll have to come up with extra money to pay his mortgage or be forced to take out his investments at a loss.

 

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1 minute ago, revkevsdi said:

I missed the part about having 2 million separately invested. 

I thought his choice was between having 150 grand that he invested or using the money to pay off his mortgage.

If he has 2 million cash he's fine either way.

But if he invested 150 grand and interest rates climb while the stock market tanks, then he won't be fine.  He'll have to come up with extra money to pay his mortgage or be forced to take out his investments at a loss.

 

150 is all i saw as well....pay off the house. 

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55 minutes ago, revkevsdi said:

I missed the part about having 2 million separately invested. 

I thought his choice was between having 150 grand that he invested or using the money to pay off his mortgage.

If he has 2 million cash he's fine either way.

But if he invested 150 grand and interest rates climb while the stock market tanks, then he won't be fine.  He'll have to come up with extra money to pay his mortgage or be forced to take out his investments at a loss.

 

He os debt free.  Every year widens the gap.  Pay attention.

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17 hours ago, ArcticCrusher said:

He has that regardless.  Put it in fixed income is a slow death, so he might as well pay off the mortgage.  He could try equities. but there is risk no doubt.  He could also start a business or take one over from someone wanting out.  He could take half 75K and put it down on a rental for say 350K  that caries itself and then do it again.  Now he has two 350K properties each gaining 3% >10K per year on a 75K x2 investment, plus rent goes up.  In 20 years when all properties are paid  do you think he would be further ahead by paying off the mortgage?

 

That was my thinking 10 years ago.  It put me in a good spot, but rentals can get old fast.  Just interesting to see the different views on this forum. 

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12 minutes ago, racer254 said:

That was my thinking 10 years ago.  It put me in a good spot, but rentals can get old fast.  Just interesting to see the different views on this forum. 

They van be a pain

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15 minutes ago, racer254 said:

That was my thinking 10 years ago.  It put me in a good spot, but rentals can get old fast.  Just interesting to see the different views on this forum. 

Ex buss partner used to have a lot. Got sick of it and started buying up commercial rentals. They don't have the same rights and therefore actually have a desire to pay the rent.

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