Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 01-27-2008, 11:30 AM   #41
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,846
Quote:
Originally Posted by cute fuzzy bunny View Post
Watermelon.
I was SURE it referred to a good seafood gumbo or shrimp creole. Oh, well. Those angels need some education.
__________________

__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is online now   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-27-2008, 11:32 AM   #42
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
HFWR's Avatar
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
Quote:
Originally Posted by cute fuzzy bunny View Post
Watermelon.
I was thinking "bacon"...
__________________

__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Old 01-27-2008, 11:46 AM   #43
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Well, I'd have said bacon, but I dont have the world renown that Twain has.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Old 01-27-2008, 11:48 AM   #44
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,408
Quote:
Originally Posted by HFWR View Post
I was thinking "bacon"...

didnt he write hamlet?
__________________
mathjak107 is offline   Reply With Quote
Old 01-27-2008, 11:53 AM   #45
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Perhaps. Among others.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Old 01-27-2008, 11:54 AM   #46
Thinks s/he gets paid by the post
twaddle's Avatar
 
Join Date: Jun 2006
Posts: 1,378
Quote:
Originally Posted by chinaco View Post
IMHO - Pay down the mortgage. But make sure you have an emergency fund before you pay it down. People get caught in cash crunches by unexpected expenses.
My mortgage (HELOC) is my emergency fund.
__________________
twaddle is offline   Reply With Quote
Old 01-27-2008, 11:03 PM   #47
Thinks s/he gets paid by the post
 
Join Date: Apr 2007
Posts: 1,304
Quote:
Originally Posted by HFWR View Post
I was thinking "bacon"...
mmmmmmm ... fatty pig meat ... I LOVE BACON.
you guys have helped me immensely with advice, knowledge, and overall moral financial support.
... but you're really scr*wing up the diet portion of my brain.
__________________
Life is GREAT!
megacorp-firee is offline   Reply With Quote
Old 01-28-2008, 05:13 AM   #48
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,450
Quote:
Originally Posted by twaddle View Post

So, there are many ways to play this game:

1) Play the odds, like Nords.
2) Play it safe, and find a risk-free return higher than your mortgage rate.
3) Play it safe, and pay down your mortgage.

Of course, there are a bunch of hybrids, too. For example, clifp indicated he would probably buy high-yield financials with his proceeds. That puts the principal at risk, but he has an excellent chance of sustaining a yield that will be sufficient to cover the interest on his loan.

In general, the larger your nest egg, the less you need to worry about matching specific liabilities to specific investment assets.
Nice analysis Twaddle.

Interestingly enough now that I actually have the cash (it arrived last Thursday). I have decide to keep 1 year loan payments in a money market, I am losing about 60 BP 4.99 for the loan vs 4.4% for MM for the $12K I am keeping in reserve. Last week I bought just over $50K of stock with dividends of ~$4K. I think I'll be able to get close to ~$3K more income.
__________________
clifp is offline   Reply With Quote
Old 01-28-2008, 08:28 PM   #49
Thinks s/he gets paid by the post
thefed's Avatar
 
Join Date: Oct 2005
Posts: 2,203
I always felt that inflation was my friend when considering a mortgage. It sure will be easier to come up with the $1000 in 30 yrs than today....no?
__________________
thefed is offline   Reply With Quote
Old 01-28-2008, 08:38 PM   #50
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Definitely your friend when you're working and making a wage adjusted income.

If you're taking money out of the mortgage to invest, inflation becomes a zero factor.

Because every dollar in your investment portfolio is devalued at the same inflation rate as the mortgage money.
__________________

__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
To Pay Off the House ... Or Not? Rosalita FIRE and Money 9 05-16-2006 07:11 PM
I'm buying a house, do I pay cash? ready to go Hi, I am... 35 01-06-2006 06:24 PM
Using 401(k) to pay for house JRB FIRE and Money 16 05-24-2005 03:19 PM
Pay off the House Sheryl FIRE and Money 45 05-07-2004 01:22 PM

 

 
All times are GMT -6. The time now is 08:02 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.