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01-27-2008, 10:30 AM
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#41
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,199
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 Quote:
Originally Posted by cute fuzzy bunny
Watermelon.
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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.
Happily retired since 2009, at age 61. Best years of my life by far!
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01-27-2008, 10:32 AM
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#42
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
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Quote:
Originally Posted by cute fuzzy bunny
Watermelon.
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I was thinking "bacon"...
__________________
Have Funds, Will Retire
...not doing anything of true substance...
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01-27-2008, 10:46 AM
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#43
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,702
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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.
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01-27-2008, 10:48 AM
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#44
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2005
Posts: 5,704
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Quote:
Originally Posted by HFWR
I was thinking "bacon"...
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didnt he write hamlet?
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01-27-2008, 10:53 AM
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#45
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,702
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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.
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01-27-2008, 10:54 AM
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#46
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Thinks s/he gets paid by the post
Join Date: Jun 2006
Posts: 1,703
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Quote:
Originally Posted by chinaco
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.
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My mortgage (HELOC) is my emergency fund. 
__________________
Emancipated from wage-slavery since 2002
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01-27-2008, 10:03 PM
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#47
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Thinks s/he gets paid by the post
Join Date: Apr 2007
Posts: 1,305
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Quote:
Originally Posted by HFWR
I was thinking "bacon"...
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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!
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01-28-2008, 04:13 AM
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#48
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Oct 2006
Posts: 7,725
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Quote:
Originally Posted by twaddle
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.
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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.
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01-28-2008, 07:28 PM
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#49
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Thinks s/he gets paid by the post
Join Date: Oct 2005
Posts: 2,203
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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?
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01-28-2008, 07:38 PM
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#50
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,702
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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.
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