Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Good Debt vs Bad Debt
Old 09-11-2004, 03:09 PM   #1
Recycles dryer sheets
 
Join Date: Jul 2004
Posts: 170
Good Debt vs Bad Debt

Ready...GO!

Your perspective...

http://www.cambridgeadvisors.com/con...b/goodbaddebt/

__________________

__________________
Tommy_Dolitte is offline   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!

Let's not go there again!
Old 09-11-2004, 03:20 PM   #2
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Let's not go there again!

We all know how we feel about rent vs own and mortgage vs no debt. The article does nothing but dump high-octane gasoline on the smoldering embers of this eternal reciprocated diatribe.

Having said that, we're about to refinance our mortgage from 6.125% to 5.5. It's the third one (on this house) in four years. It'll cost about $1500 and the payback is less than a year. The money is invested in a small-cap index ETF (S&P 600/Barra Small-cap Value-- IJS). I'll pay the mortgage out of my pension cashflow and we'll be keeping our retirement portfolio withdrawal rate under 4%.

I'll be 74 when it's paid off!
__________________

__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: Let's not go there again!
Old 09-11-2004, 03:58 PM   #3
 
Posts: n/a
Re: Let's not go there again!

Quote:
We all know how we feel about rent vs own and mortgage vs no debt. *The article does nothing but dump high-octane gasoline on the smoldering embers of this eternal reciprocated diatribe.

Having said that, we're about to refinance our mortgage from 6.125% to 5.5. *It's the third one (on this house) in four years. *It'll cost about $1500 and the payback is less than a year. *The money is invested in a small-cap index ETF (S&P 600/Barra Small-cap Value-- IJS). *I'll pay the mortgage out of my pension cashflow and we'll be keeping our retirement portfolio withdrawal rate under 4%.

I'll be 74 when it's paid off!
Well,

there is man putting his money where his mouth is! *- I did wimp out and pay off my 5.25% mortgage! - Wabmester and ***** both seem to think we are in for tougher times than that - and that it will be tough to get 5.5%. But, I really do hope you are correct and we all get returns better than this, as I am still 60% in stocks.

I am somewhat in between, in that I am hoping for a 2.5% to 3% real return in stock/bonds over the next 20-30 years, but right now I would wimp out and take a 5.5% return over the short term. :)
__________________
  Reply With Quote
Re: Good Debt vs Bad Debt
Old 09-11-2004, 03:58 PM   #4
 
Posts: n/a
Re: Good Debt vs Bad Debt

I have no mortgages on anything, and I don't expect
to see 74. Now, this is important. Neither my spouse
nor I plan to be here for very long (it's just our mindset). However, I allow for the possibility that we might be around for a long time.
Our idea is to live like you might die tomorrow but
allow for the scenario that you may live to 100.
Anyway, I know that psychologically I am better off with
no mortgages. 50% of my net worth is in real estate,
all unencumbered. I need to preserve that.

John Galt
__________________
  Reply With Quote
Re: Good Debt vs Bad Debt
Old 09-11-2004, 08:39 PM   #5
Full time employment: Posting here.
 
Join Date: Jan 2004
Posts: 844
Re: Good Debt vs Bad Debt

My thoughts?

Over the past 70 years, the stock market has increased an average of 11% per year.


Thats as far as I had to read in the article to know the author has nothing to say of any real significance....
__________________
farmerEd is offline   Reply With Quote
Re: Good Debt vs Bad Debt
Old 09-12-2004, 08:09 AM   #6
Thinks s/he gets paid by the post
 
Join Date: Jul 2004
Posts: 1,505
Re: Good Debt vs Bad Debt

My perspective was that its the standard advise we've all heard..... and yes, i agreed with all of it. Was nothing revolutionary though.
__________________
azanon is offline   Reply With Quote
Re: Good Debt vs Bad Debt
Old 09-12-2004, 12:54 PM   #7
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
Re: Good Debt vs Bad Debt

Yeah, here's another salient stat for you.

During the course of the past 43 years, I've never dropped dead or fathered a child.

Therefore, I should conceivably last forever, childless.

Oops.
__________________
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
Re: Good Debt vs Bad Debt
Old 09-13-2004, 10:37 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Feb 2003
Location: Mesa
Posts: 3,588
Re: Good Debt vs Bad Debt

Quote:
Your perspective...
There does not appear to be much value in discussing mortgage and debt on these boards.
__________________

__________________
sgeeeee 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
Equity Is Altering Spending Habits and View of Debt Craig FIRE and Money 6 02-21-2009 01:25 PM
Is now a good or bad time for bond funds LA_Newsboy FIRE and Money 34 12-27-2003 09:23 AM
Being debt free is bad? SAHW Other topics 12 09-12-2003 04:51 AM
Good book - The Millionaire Next Door Telly Other topics 18 08-20-2003 04:37 PM
Paying off Debt vs. 401(k) Contributions BigMoneyJim FIRE and Money 4 02-10-2003 11:06 AM

 

 
All times are GMT -6. The time now is 10:40 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.