holdfast Posted February 2, 2009 Author Report Share Posted February 2, 2009 (edited) Holdfast, That sounds like a plan that will work for you. It may not be the MOST exciting way to play, but it sounds like the way that will allow you to sleep at night .. and it sounds to me like a very reasonable strategy ... if you want to 'play' why not mess around in a 'trial' account ... then you can keep track of what mighta-coulda-woulda been ....and maybe you'll kick yourself or maybe you'll thank your lucky stars ... truth is nobody knows ... I can guarantee you that there will be alot of money made and alot of money lost by people taking their chances over the next little while ... and frankly despite what many will tell you, if you are generally conservative (and it sounds like you are) ... this is a reallllllllly good time to stay that way. The good news is you are in extremely good company as a very large majority of the soon-hoping-to-retire crowd have had to reassess their plans and goals...and conservative thinking of those long in the tooth is looking like a very sound strategy. The better news is that the sun will rise again tomorrow morning and good things will happen ... the key is making sure you have the will and the strength to participate when you see it happening the way you would feel comfortable participating. And dont let anyone tell you otherwise. Besides, NEVER forget .. its all really only numbers on pieces of paper ... and there lots of ways to find your peace without staring day and night at those numbers...and there are lots of ways to help yourself and others that are not directly related to the almighty dollar. Yup I hear ya. My ultimate goal was to pay that Damn Morgage off as soon as possible 14 and confirmed 3 yrs ago when I sat with my financial advisor in a Reg Force uniform for the last time. I know one thing. I lost just about one quarter of my savings. But heres where I can sleep. Ive only added one more year of paying on my Mortgage which less than a week ago I had absolutely no Idea if Ill ever pay it off. Its really important as my Pension check like I stated, will vanish when CPP kicks in, will hopefully go into our pockets as long as I work, instead of the Bankers, ( CEOS and their spoiled kids toys) Edited February 2, 2009 by holdfast Link to comment Share on other sites More sharing options...
Pachone Posted February 2, 2009 Report Share Posted February 2, 2009 Go to Chapters. Sit for an hour or 2. And read through the book " Financial Planning for Dummies " (you know the dummies series?) Skim through some other financial ones too. The best suggestion is to learn some things about Money, and how it works. Before you listen to someone tell you what to do with it and pay there commission. Learn for yourself.... your money is important right? I believe they should be putting ALOT more money education into schools right now, as there is NONE! Bring that to the PM. I also think they should have the book "Rich Dad, Poor Dad" by Robert Kiyosaki taught in highschool. Link to comment Share on other sites More sharing options...
OhioFisherman Posted February 2, 2009 Report Share Posted February 2, 2009 Check your payment, principal v. interest which is bigger? Lowering the interest portion of the bill saves you money monthly. Really doesn`t take a lot to get the interest portion down, instead of stopping at the gas station, McDonalds for a cup of coffee take one from home, 20-30 bucks a month more you can throw on the principal, rent a movie instead of going to the movie theater. Always found a way to put at least 100 extra bucks on my mortgage a month, sometimes quite a bit more. Took an original 25 year loan down to less than 15 years. Refinanced when interest rates dropped. Last refinance was for safety, sick and didn`t know why, refinanced the 15 years loan, lower interest rate and payment went from 625 to 225 for 10 years. Just a safety thing in case I couldn`t keep working, turned out to be a wise move. House has been paid for a few years now, you don`t have to strap your self to do it, just make good choices. Link to comment Share on other sites More sharing options...
Cookslav Posted February 3, 2009 Report Share Posted February 3, 2009 (edited) Here is a realistic Question to ask your self, How long are you willing to wait? Whats your maximum time? You may actually come out ahead pulling... Bare with me here on some approximate numbers... Your down $10,000 right? How much interest will you pay on your mortgage over the next 5 years on that out standing principle? My guess is about $10,000 right...maybe a few Grand more, maybe a few less? So basicly on a 5 year plan if you pull out, your basicly going to break even. If you on the other hand let the investment ride for 5 years you "may" make back your $10,000 but...you've also Paid $10,000 in interest on your mortgage so now your still behind $10,000.... You "could" get lucky and make more, but you may loose even more then you bargin for. You need to decide how long your willing to wait. If you want to keep it really simple Holdfast... Compare your Mortage debt to the value of your investment then assess if your rate of return on the investment is more then the interest rate you pay on your mortgage. That will tell the story bud, I don't know your particulars but IMO if you can dump your investment and clean up your mortgage debt all at once, or in the next 2-3 years I would do it cause the market is not going to help you with less then 5 years time. Edited February 3, 2009 by Cookslav Link to comment Share on other sites More sharing options...
holdfast Posted February 3, 2009 Author Report Share Posted February 3, 2009 Here is a realistic Question to ask your self,How long are you willing to wait? Whats your maximum time? You may actually come out ahead pulling... Bare with me here on some approximate numbers... Your down $10,000 right? How much interest will you pay on your mortgage over the next 5 years on that out standing principle? My guess is about $10,000 right...maybe a few Grand more, maybe a few less? So basicly on a 5 year plan if you pull out, your basicly going to break even. If you on the other hand let the investment ride for 5 years you "may" make back your $10,000 but...you've also Paid $10,000 in interest on your mortgage so now your still behind $10,000.... You "could" get lucky and make more, but you may loose even more then you bargin for. You need to decide how long your willing to wait. If you want to keep it really simple Holdfast... My Plan is to Dump that Mortgage in two years otherwise it would of been next year if I had the 30,000 to end it.. My Plan is to pay off that Morgage ASAP, otherwise Id be completely Debt free except car payments. Compare your Mortage debt to the value of your investment then assess if your rate of return on the investment is more then the interest rate you pay on your mortgage. That will tell the story bud, I don't know your particulars but IMO if you can dump your investment and clean up your mortgage debt all at once, or in the next 2-3 years I would do it cause the market is not going to help you with less then 5 years time. Link to comment Share on other sites More sharing options...
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