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Eh, see I don't agree with this in particular. Moving from savings to a house, can be a slow growth equation that COULD or COULD NOT be compounding (given our c
by BLO716 4y ago
Eh, see I don't agree with this in particular. Moving from savings to a house, can be a slow growth equation that COULD or COULD NOT be compounding (given our current market, in reflection of my own home up 200% from 2008 in our cost) depending on your expectations of that.
Paying off a home may have 2-3% yield, where as normal index is like 4-6% and the rest of the world can operate from 6%-?? in more traditional (but fee laden) vehicles. As far as I can see, a home is SAFE investment by not a progressive one, in choice.
If you are risk averse, then fine. However, we want 6-10% with compounded / low-fee returns over the course of 30+ years if starting around age 30 - which is I bet the average saving age start (thinking first kid, first house, marriage etc) when you get out of that 20's fun-house zone.
I'd say, 401K/IRA (to keep the tax burden off you), then hit up local start-ups in the industry you know the most about, then start working towards passive income. If you are the start-up TYPE, then start like Adam Houghton and do the 6-Starups in 6-Months adventure. (https://medium.com/@adam_c_houghton/6-startups-in-6-months-834707979890 https://medium.com/@adam_c_houghton/6-startups-in-6-months-8...).
I honestly think its investing in yourself until you can be yourself - aka. fake it till you make it in investing by traditional path until you can eject from it .
Investing is a game of self-confidence and getting on with it. Me -> following that 6-mo/6-starups plan as of 6/1. Wish me luck!!!
- fnordpiglet 4y agoGiven that 2-3% (and improving given interest rates) is risk free, on a risk adjusted basis you’re doing better than almost any other investment. Debt payment is almost always the most advantaged move - on a risk adjusted basis. I’m not suggesting only using mortgage payment as an investment vehicle but one in addition to robo or index investment, and always max out your tax advantaged options first.
- muldoc 4y agoDoes that 2-3% not refer to percentage of the property worth i.e. mortgage, while 4-6% refers to the amount invested? So a 1:1 comparison would only make sense if you invest your loan into funds while keep living with your parents?