Nobody should be paying off mortgages right now if they have 3% or lower rates.

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May 11, 2022
4:17:20pm

RH84025 Truly Addicted User

Nobody should be paying off mortgages right now if they have 3% or lower rates.

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RH84025

Previous username: RH84054
Bio page: RH84025
Joined: Oct 12, 2015
Last login: Apr 28, 2024
Total posts: 6,578 (0 FO)

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Messages

Author

Time

If you were sitting on a wad of cash, if 500K what would you do with it now?

Ycrazy

5/11/22 4:06pm

DCA 50k into VTSAX every month for next 10 months.

coug16

5/11/22 4:07pm

I’m not a fan of DCA over just investing lump sum

JOPE

5/11/22 4:17pm

So are you better off holding till markets bottom out?

Ycrazy

5/11/22 4:19pm

Problem is, you only know it’s the bottom when you’re well on the way out

Cougarclaw

5/11/22 4:20pm

If you talk to an investment advisor they would tell you to just put it in the market when you have it

JOPE

5/11/22 4:22pm

Pay off the mortgage on all my rental properties

RenoCoug

5/11/22 4:09pm

What is your interest rate on those loans?

5/11/22 4:11pm

That would be the big factor. We locked in rates in the 3s. With 8% inflation

johnnybyu

5/11/22 4:12pm

Pretty good, but it would create about $7,200.00 a month in cash

RenoCoug

5/11/22 4:12pm

Kind of. You are also sacrificing in opportunity cost on the interest you could earn from the investments you could make

5/11/22 4:14pm

True, but I like the idea of having my tiny "empire" paid off

RenoCoug

5/11/22 4:17pm

True. And that’s one way to look at it. But peace of mind is expensive. I would look at this as a unique opportunity to

5/11/22 4:22pm

Yup, A good way to look at it is the interest rate amounts to your rate of return on your money

JOPE

5/11/22 4:48pm

Silliness-why pay down a loan in the 3s on an appreciating asset with inflation?

ebv

5/11/22 4:17pm

Purchase land as an investment.

RH84025

5/11/22 4:09pm

Land can be difficult in a recession and there is no way to make money off of it

johnnybyu

5/11/22 4:14pm

I was thinking as a longer term investment. Assuming you didn't need the money

RH84025

5/11/22 4:16pm

It could work long term if you buy it in all in cash. Certainly wouldn't levera

johnnybyu

5/11/22 4:18pm

RE: If you were sitting on a wad of cash, if 500K what would you do with it now?

Ragnar Danneskjold

5/11/22 4:11pm

RE: If you were sitting on a wad of cash, if 500K what would you do with it now?

slappy

5/11/22 4:14pm

RE: If you were sitting on a wad of cash, if 500K what would you do with it now?

RootieBoy

5/11/22 4:15pm

RE: If you were sitting on a wad of cash, if 500K what would you do with it now?

SausageKing

5/11/22 4:19pm

You don’t need 500k for that though

JohnnyComeLately

5/11/22 4:23pm

RE: You don’t need 500k for that though

Ragnar Danneskjold

5/11/22 4:29pm

Pay off my mortgage, drop the rest in to longterm ETFs and then take most of what I'm paying monthly toward my mortgage

scall

5/11/22 4:11pm

I don’t agree with the mortgage. Paying off your mortgage could cost you millions of dollars if you

JOPE

5/11/22 4:15pm

I just want the security of no mortgage but I understand where you are coming from

scall

5/11/22 4:16pm

I get why you say that, lots of people feel that way

JOPE

5/11/22 4:33pm

We paid off our mortgage and now have no debt. Best decision we ever made. You

O Gaucho

5/11/22 4:35pm

Especially if you paid it off a year ago.

ochobeeguy

5/11/22 4:51pm

Not sure you did that math right. Unless you live in Alpine I guess.

ochobeeguy

5/11/22 4:52pm

You sure? Let’s say you have 20 years left on your mortgage, and your mortgage is $500,000

JOPE

5/11/22 5:14pm

I see, I guess if you use the rate from the best bull market in history.

ochobeeguy

5/11/22 5:27pm

What? Even at 10% the difference is 2 million

JOPE

5/11/22 5:33pm

Stop listening to Dave Ramsey

Ron Mexico

5/11/22 5:46pm

RE: Stop listening to Dave Ramsey

JOPE

5/11/22 6:05pm

Fill up all 3 of my cars. All the way full.

IGotGoodGifs

5/11/22 4:11pm

You can only get 35 gallons with the Smith's gas discount though.

ochobeeguy

5/11/22 4:53pm

Beanie Babies

Tare

5/11/22 4:12pm

RE: If you were sitting on a wad of cash, if 500K what would you do with it now?

the_byu_flash

5/11/22 4:13pm

I think that is looking more like the challenger shuttle then rockets now

Ycrazy

5/11/22 4:15pm

Donate it all to the poor and needy, and thus gain eternal blessings greater

Nikomedes

5/11/22 4:13pm

Buy SOXL and hold.

BoiseCougar

5/11/22 4:16pm

That stock has had quite a rough ride. Why are you in love with it?

Ycrazy

5/11/22 4:18pm

It’s cheap.

BoiseCougar

5/11/22 4:22pm

Not sure about putting it all in there. But 2 or 3 % if you don’t need access to it for a while.

5/11/22 4:28pm

Leveraged ETFs are not built to be bought and held.

JuicyJam

5/11/22 4:50pm

Nobody should be paying off mortgages right now if they have 3% or lower rates.

RH84025

5/11/22 4:17pm

This. We will look back on those rates as a gift.

ebv

5/11/22 4:18pm

Already looking like a massive gift

5/11/22 4:19pm

Buy more MTTR. Reported Q1 earnings yesterday and they’re delivering. Stock

hansel

5/11/22 4:21pm

I guess now that it has lost 2/3 of its value in about 6 months.

ochobeeguy

5/11/22 4:57pm

Real estate that will move with inflation but that I’m otherwise buying because it’s a good cash flower

JollyGreenGiant

5/11/22 4:23pm

Blow it on cars, trips and guns!!!

BYU Grounds

5/11/22 4:23pm

Wait until around Oct to invest. Thing are not turning around until/if the

byucougarsbig12

5/11/22 4:29pm

Put it into a high dividend ETF like QYLD or RYLD

MapCoug

5/11/22 4:30pm

Buy as many cash flowing rental properties as possible

4mack

5/11/22 4:35pm

This is the answer in an inflationary environment.

ebv

5/11/22 4:36pm

With $500k? You can get maybe one that is cash flow positive on year one.

HuskerFan2

5/11/22 5:08pm

Down payments on multiple.

4mack

5/11/22 5:28pm

What? Put down 30-40% on any number of homes in Utah, and you can easily

ebv

5/11/22 5:29pm

Sorry. It was meant as a joke.

HuskerFan2

5/11/22 5:35pm

RE: Sorry. It was meant as a joke.

ebv

5/11/22 5:40pm

Start a business with part of it and invest the rest

homegrown

5/11/22 4:59pm

Whatever made me happiest

BingoNY

5/11/22 5:00pm

Pay off mortgage/debts, Max out 401k, IRA and HSA

JohnnyC

5/11/22 5:26pm

Purchase Cougarboard and reign down on those who have betrayed him

TNT

5/11/22 6:18pm

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