09-21-2020, 10:39 AM
Keep in mind the tax code screwed you if you are married and have a mortgage. Most of America now has no use for a Mortgage deduction; so that advantage of mortgages got taken away.
I am personally in the "get your shit paid off" camp. The proponents screaming "I make more money in the market are"
75% - Take that money and spend it and not invest it
20% - Take that money, invest it, get hit with an issue constricting cash flow; and now take huge hits to maintain cash flow
5% - Manage cash flow properly and invest properly.
I view my house as diversification. If the market tanks, I lose my job and dont have cash flow; I dont have a huge monthly bill to pay. I also can leave my money in the market to take advantage of the inevitable run up. It also means you have a backup to your backups if you need to access cash from your house equity. A nearly paid off or paid off house gives you leverage (and also reduces your debt to equity ratio when in worst case 2009 scenarios you will still be able to get a loan).
Most people who run into money issues are because of cash flow; not because of supposed net worth or what they "made" off investments. It's "do you have money right now to pay your bills". When a correction or recession occurs; you dont want to be having to pull money out of the market at its absolutely worst time to pay bills. Just something to think about vs "MAXIMIZE YOUR GAINZZZZZZZZ". That's my viewpoint as being extremely conservative; with the caveat that I do understand I am not squeezing every penny out of my hard earned dollars.
I am personally in the "get your shit paid off" camp. The proponents screaming "I make more money in the market are"
75% - Take that money and spend it and not invest it
20% - Take that money, invest it, get hit with an issue constricting cash flow; and now take huge hits to maintain cash flow
5% - Manage cash flow properly and invest properly.
I view my house as diversification. If the market tanks, I lose my job and dont have cash flow; I dont have a huge monthly bill to pay. I also can leave my money in the market to take advantage of the inevitable run up. It also means you have a backup to your backups if you need to access cash from your house equity. A nearly paid off or paid off house gives you leverage (and also reduces your debt to equity ratio when in worst case 2009 scenarios you will still be able to get a loan).
Most people who run into money issues are because of cash flow; not because of supposed net worth or what they "made" off investments. It's "do you have money right now to pay your bills". When a correction or recession occurs; you dont want to be having to pull money out of the market at its absolutely worst time to pay bills. Just something to think about vs "MAXIMIZE YOUR GAINZZZZZZZZ". That's my viewpoint as being extremely conservative; with the caveat that I do understand I am not squeezing every penny out of my hard earned dollars.
2020 Ford Raptor
2009 Z06
1986.5 Porsche 928S
2009 Z06
1986.5 Porsche 928S