thank you for this ... i appreciate the perspective ... for what it's worth, envy never entered my mind ... just want/wanted to use capital smarter if possible ... everyone should want to do that regardless of circumstanceshuskerfan1414 wrote: ↑Mon Jun 29, 2020 9:38 amDude, you've won the game.LD1515 wrote: ↑Mon Jun 29, 2020 4:59 amFirst of all ... WOW .... thank you all very very much for your feedback ... a quick summary of comments so far are
- Roughly 80-85% ... some version of "thinking too hard" ... invest any proposed mortgage payment into VG index fund of some flavor and go back to sleep ...
- Remaining 15-20% ... need more personal info ... pulling money out to invest may make sense under some circumstances ... ok ... here goes
Bio ... me age 53 ... wife age 53 ... sold business 2 years ago ... 2 children (one 24 and off the payroll (thank God) ... other 19 in college paying full
retail for tuition etc)
both scaled back working 2 years ago ... downsized our life/expenses accordingly to regain some peace ... will take occasional project
here and there ... those projects do not come by often but if/when they do we pass on most ... because we continue to pass, future
opportunities will probably come along less often
do not expect to have to financially contribute to our parents care
Finances ... 2 m taxable ... 1 m traditional IRA
thank you again ... looking forward to any/all responses ...
Don't get back into the game.
Think of it this way: instead of being envious of others who might be increasing their net worth with more investing, realize people like me are doing so to get into YOUR position.
Have a question about your personal investments? No matter how simple or complex, you can ask it here.
LD1515LD1515 wrote: ↑Mon Jun 29, 2020 2:12 pmone of the earlier threads on this discussion kicked around taking an interest only loan on the house (not sure if they are easy to get) ... current rates extremely low ... essentially becoming my own tenant ... free up my own capital ... invest the capital reasonably well (paying taxes on those gains) ... itemize, write off the loan interest payment and at the end of the interest only loan period do one of the following
refinance the house
payoff the loan
any merit to this general idea ... given current interest rates ... thanks in advance
What is the difference between "Interest only loan" and regular mortgage to you? It appears that you want to derive long term benefit from locked in equity.
It is better to write down the business plan. Something like
"I want to borrow 100,000 at 3% interest to invest in ______ so the invested capital can become ________ in ____ years"
You are earning an implied rate of return on your home equity roughly equal to prevailing mortgage interest rates, and that's likely an after-tax return as well. Depending on which mortgage you would have, that currently works out to a 3% to 3.5% probably after-tax return, which is almost unbeatable for fixed income these days.
Same. I don't want to put my family's shelter at risk so I can try to outperform mortgage interest rates.
If you have no mortgage, you can probably afford to be more aggressive with your investment portfolio than otherwise. And I say that having been on both sides of the fence. Now that our mortgage is gone, there's no way that I would take out a new one to invest.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings