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Why would anyone pay cash for a house when even a horrendous mortgage rate is still only 6%? That cash is earning 10% easily with zero effort. Put 15 minutes of

Why would anyone pay cash for a house when even a horrendous mortgage rate is still only 6%? That cash is earning 10% easily with zero effort. Put 15 minutes of effort in and open a Betterment account and you’re likely getting closer to 20%. Cash buyers make no sense to me.

throw123123123 4y ago
Have you checked your portfolio lately?
- scarface74 4y ago
  Yes, and that’s even more of a reason to be putting extra money into the market if you have a ten year+ time horizon.
  - somenameforme 4y ago
    I'd reference the Nikkei 225 circa 1990 [1]. That graph is not inflation adjusted. Up to 1990 everybody thought Japan was well on its way to becoming the world's largest economy on an exponential and unstoppable economic acceleration. And it was unstoppable. Then it stopped. I am not saying this will be the case, but rather that we're at what is likely the largest inflection point in modern history, and trying to predict where the world will be at in 10 years has become effectively impossible. [1] - https://www.macrotrends.net/2593/nikkei-225-index-historical-chart-data https://www.macrotrends.net/2593/nikkei-225-index-historical...
    - deleted 4y ago
      [deleted]
teg4n_ 4y ago
20% return from Betterment? That’s hyperbole right? I have a betterment account and it’s nowhere close to that.
- ryanSrich 4y ago
  What are you getting? Are you looking at time weighted or money weighted? I just checked and I’m getting an average of 21.6% across 7 different portfolios on betterment (annualized, not cumulative).
  - teg4n_ 4y ago
    The highest is 8.8 which is time-weighted cumulative, annualized is far worse at 2.2 for time weighted
alexb_ 4y ago
"Just get 20% returns easily" LOL! The fact that you would not only think that type of return is consistent and "easy", but literally think that you should go into debt betting on that, is laughable. If it was guaranteed money, everyone would be doing it.
asdff 4y ago
Because they aren't just sitting on the house, they are cashing out after buying and also taking advantage of the market with that money.

throw123123123 4y ago

Have you checked your portfolio lately?

scarface74 4y ago
Yes, and that’s even more of a reason to be putting extra money into the market if you have a ten year+ time horizon.
- somenameforme 4y ago
  I'd reference the Nikkei 225 circa 1990 [1]. That graph is not inflation adjusted. Up to 1990 everybody thought Japan was well on its way to becoming the world's largest economy on an exponential and unstoppable economic acceleration. And it was unstoppable. Then it stopped. I am not saying this will be the case, but rather that we're at what is likely the largest inflection point in modern history, and trying to predict where the world will be at in 10 years has become effectively impossible. [1] - https://www.macrotrends.net/2593/nikkei-225-index-historical-chart-data https://www.macrotrends.net/2593/nikkei-225-index-historical...
  - deleted 4y ago
    [deleted]

teg4n_ 4y ago

20% return from Betterment? That’s hyperbole right? I have a betterment account and it’s nowhere close to that.

ryanSrich 4y ago
What are you getting? Are you looking at time weighted or money weighted? I just checked and I’m getting an average of 21.6% across 7 different portfolios on betterment (annualized, not cumulative).
- teg4n_ 4y ago
  The highest is 8.8 which is time-weighted cumulative, annualized is far worse at 2.2 for time weighted

alexb_ 4y ago

"Just get 20% returns easily" LOL! The fact that you would not only think that type of return is consistent and "easy", but literally think that you should go into debt betting on that, is laughable. If it was guaranteed money, everyone would be doing it.

asdff 4y ago

Because they aren't just sitting on the house, they are cashing out after buying and also taking advantage of the market with that money.