DBKC.org Forum Index
RegisterSearchFAQMemberlistUsergroupsLog in
Paying down loans versus investing

 
Reply to topic    DBKC.org Forum Index » Hustle View previous topic
View next topic
Paying down loans versus investing
Author Message
Bacchanalian
Moderator


Joined: 30 Mar 2009
Posts: 8285

Post Paying down loans versus investing Reply with quote
http://www.forbes.com/sites/thebogleheadsview/2012/12/02/paying-down-debt-often-the-best-investment/

http://www.bogleheads.org/wiki/Paying_down_loans_versus_investing
Fri Apr 25, 2014 5:40 pm View user's profile Send private message
sementherapy
Super Moderator


Joined: 31 Jan 2008
Posts: 12188

Post Reply with quote
interesting perspectives

although for me, it makes much more sense to stay liquid
Fri May 02, 2014 9:47 am View user's profile Send private message
MikeB
i <3 dubukimchi!


Joined: 15 Aug 2008
Posts: 2541

Post Reply with quote
sementherapy wrote:
interesting perspectives

although for me, it makes much more sense to stay liquid


i agree.

we're in such a low interest rate environment, the cost to borrow is relatively low, even still (longer than i anticipated)

there's no incentive to really pay down the loan, or rather ... less of an incentive. (UNLESS your have a really high interest rate.. i dunno what thats like cuz I'm A paper, SON.)

this is indicative in consumer behavior in a rising interest rate environment. As interest rates rise, there is a propensity for prepayment speeds to decrease.

although cash is a non earning asset, it is still king. if you're looking to stay relatively liquid, you can invest in a low yielding CD

honestly, it would make sense to invest in a 5 year CD even though yields are still pretty low (1.00% or so). then, if CD rates start to reprice, just pay the penalty, you'll more than likely still come out on top

i wouldn't want to tie my money up in a bond with the yields the way they are and the assumption that rates are going to rise

but who the hell knows when that will be... Yellin is continuing the Fed taper of Mortgage buybacks.... and do not project to increase the Fed Funds rate until Spring 2015...


Last edited by MikeB on Mon Jun 02, 2014 10:09 pm; edited 1 time in total
Mon Jun 02, 2014 10:02 pm View user's profile Send private message
MikeB
i <3 dubukimchi!


Joined: 15 Aug 2008
Posts: 2541

Post Reply with quote
I do agree with the article saying to take advantage of 401k matching.

DONT LEAVE THAT MONEY ON THE TABLE SON.
Mon Jun 02, 2014 10:08 pm View user's profile Send private message
Display posts from previous:    
Reply to topic    DBKC.org Forum Index » Hustle All times are GMT - 7 Hours
Page 1 of 1

 
Jump to: 
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum


Powered by phpBB © 2001, 2005 phpBB Group
Design by Vjacheslav Trushkin / Easy Tutorials (Photoshop Tutorials).