UnThreaded | Threaded | Whole Thread (28) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: 2gifts Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: Re: Do you have a rational home equity policy? Date: 1/27/2005 4:03 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
I think the "big picture" is about building wealth, not necessarily being out of debt. I laugh to myself when I see the Dave Ramseys and other "experts" talking about how much interest you save by paying down a mortgage quickly. They don't ever address the opportunity cost of doing so.


We all use different measuring sticks and different criteria for our lives. In my case, I don't happen to think that opportunity cost is everything, nor do I agree that the big picture is about building wealth. That may be true for you, but there are probably more than a few like me that measure other things in the big picture like having my health, being able to put my children through the college of their choice, and being able to retire early, all of which are my goals. To do that, though, it doesn't mean that I have to funnel every extra dollar into investments to simply make more money.

There is that sleep-at-night factor where I want to know that I will simply always have a place to sleep and the wherewithal to be able keep it. It doesn't mean that I have to maximize every investment dollar particularly if I am already meeting the goals which I have set for me.

Having a larger pile at the end is not my goal. I want a sufficient pile with a little breathing space, that allows me to buy some toys along the way, pay down the mortgage so that it will be paid by the time the kids are out of college, be financially independent, and generally do a few other things besides work and save. I am on that path, so there is no need to try to accelerate it or add any risk with which I may not be comfortable.

That is not to say that the way you view things is wrong. It is just different than the way I view things. But different is fine as long as that is adequate for each of us.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (28) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
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

Looking at Currency Ratios
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