Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (37) | Ignore Thread Prev | Next
Author: Volucris Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5083  
Subject: Re: Financial Independence Per CNN Date: 7/1/2005 11:36 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
1) Do you have any bonds in your portfolio?
2) Are they mutual funds, our actual coupons?
3) If they are mutual funds, are you worried about interest rates rising pushing down the NAV?
4) If they are coupons, what is your yield?
5) What is the interest you owe on your house?
6) Is the interest you owe on your house above or below the yield on your bonds?
7) Is the interest yield on your bond at a higher risk than the risk of your paying down your mortgage not reducing your principal?


1. Yes
2. Both
3. No. Capital appreciation/depreciation in a bond fund from the change in the NAV due to interest rate changes is a small percentage of the total return in the looonnnngggg run.
4. Around 9.5%. I got them a long time ago.
5. 5.5% fixed
6. Below if you include the tax deduction
7. The risk of paying down a mortgage is 0. But what is the opportunity cost? That's a little harder to quantitify.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (37) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement