[quote=gzz]Re: paying down low interest mortgages… I’ve always regretted doing this. Same regret when I made a big extra payment on my 2.8% fixed student loan.
So many solid unloved blue chips out there that pay a 4% or more dividend and have p/e of around 10.
My current faves are KMB and KHC. I also have Vanguard’s international high-div fund VYMI that pays a little more than 4% and has gone up 8% since my Sept 2019 purchase.
I think there’s a big middle area where conservative investors avoid stocks entirely or just get index funds, and aggro investors stick to rapidly growing companies.
Even if the return is the same, you can sell the stocks if you need the money, but once you repay a purchase mortgage, you’re unlikely to be able to get the same good rate again. 30 year 2nds are rare and cash out refis have a higher rate than purchase mortgages.[/quote]
there is a point in life where you want to arbitrage a low interest loan with higher returns higher risk investment and take additional risk to build wealth
there is another point in life where you want to protect what you’ve built
People get screwed when their goals get mixed up. Those decisions I make irrespective of what the market is actually doing. Why take on extra risk if you don’t need to?
I use to regret paying off my loans. I don’t anymore, because my cash and investment portfolio has basically returned back to the same level last November and went over the previous level end of December. And now all my properties in SD are free and clear. So technically I don’t need to work. Then again, current company is paying me a lot and I get a senior management position so why not. if I stayed at home, I’d get fat and and lazy. Whereas I like going to the free company gym.
I’m not a proponent for doom and gloom. I am not a proponent of pie and the sky euphoria. I’ve learned taking profits and doing something with it constructively is the best thing for me because it’s self-governing to prevent an unexpected disaster from wiping out what you gained . Extreme thinking’s tends to be wrong over an extended period of time
