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Negative Rates Are Coming for Your Savings


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2 minutes ago, awful knawful said:

Buying shit & paying interest for 5+ years is smarter?

sometimes yes,  depends on what you get for a return by keeping that money working.  personally i don't like debt so i don't leverage things but sometimes that loses money

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3 minutes ago, Angry ginger said:

sometimes yes,  depends on what you get for a return by keeping that money working.  personally i don't like debt so i don't leverage things but sometimes that loses money

I'm conservative and avoid debt.

Rather be debt free with $250 000 invested than a $200 000 mortgage and $450 000 invested.

Ok when things are good. What if you lose your job? Get sick & can't work?

 

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9 minutes ago, awful knawful said:

I'm conservative and avoid debt.

Rather be debt free with $250 000 invested than a $200 000 mortgage and $450 000 invested.

Ok when things are good. What if you lose your job? Get sick & can't work?

 

pend the 450 to pay the mortgage payment which is the only thing better for you in your example.  time value of money your better with the mortgage at least until the trump tax plan with high standard deduction

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2 minutes ago, Angry ginger said:

pend the 450 to pay the mortgage payment which is the only thing better for you in your example.  time value of money your better with the mortgage at least until the trump tax plan with high standard deduction

I'm in Canada.

Mortgages can't be claimed for income tax here either.

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30 minutes ago, awful knawful said:

I'm in Canada.

Mortgages can't be claimed for income tax here either.

They can against income producing properties or loans borrowed against investments.  Not primary residences.

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47 minutes ago, awful knawful said:

I'm conservative and avoid debt.

Rather be debt free with $250 000 invested than a $200 000 mortgage and $450 000 invested.

Ok when things are good. What if you lose your job? Get sick & can't work?

 

If that 450 generated a steady 40k/yr I don't see how you would be behind.

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7 minutes ago, awful knawful said:

Ya for sure. Where are these magical 8% returns year after year?

 

Lots out there.  For this scenario I recommend private investments like REITs.  No relationship to the markets with private.

Here is one that I own.  7.8% yield with a capital share adjustment approx 10% total return per year.   They are out there but unfortunately most you have to find yourself.

https://skylinewealth.ca/alternative-investments/skyline-retail-reit/

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35 minutes ago, ArcticCrusher said:

Lots out there.  For this scenario I recommend private investments like REITs.  No relationship to the markets with private.

Here is one that I own.  7.8% yield with a capital share adjustment approx 10% total return per year.   They are out there but unfortunately most you have to find yourself.

https://skylinewealth.ca/alternative-investments/skyline-retail-reit/

Just sent my info.

Thanks

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14 hours ago, awful knawful said:

I'm conservative and avoid debt.

Rather be debt free with $250 000 invested than a $200 000 mortgage and $450 000 invested.

Ok when things are good. What if you lose your job? Get sick & can't work?

 

That’s only one way to look at it. I have a 2.70% mortgage on a sub $100k mortgage. I could pay it off, but why? Investments are doing very well right now and I’d rather have that money free, invested, and making me cash. I can always liquid out some investments if I need to. Cash is so cheap right now. I’m flying down to Texas to look at an travel trailer on Tuesday. I can get a Suntrust Lifestream loan for under 5% and have the cash in my account within 4 hours. Now why would I want to liquidate an investment that doing well with the availability of cheap cash? 

Edited by spin_dry
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1 minute ago, spin_dry said:

That’s only one way to look at it. I have a 2.70% mortgage on a sub $100k mortgage. I could pay it off, but why? Investments are doing very well right now and I’d rather have that money free, invested, and making me cash. I can always liquid out some investments if I need to. Cash is so cheap right now. I’m flying down to Texas to look at an travel trailer on Tuesday. I can get a Suntrust Lifestream loan for under 5% and have the cash in my account within 4 hours. Now why would I want to liquidate an investment that doing well with the availability of cheap cash? 

Doing well is?? Has to be more than 5%.

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1 hour ago, awful knawful said:

Doing well is?? Has to be more than 5%.

Umm yes however you need to subtract the taxes owing on that.

5% needs a fixed income return of 10% or 7.5% capital.  That will take an effort. At under 3% borrowing it really is a no brainer.

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