UnThreaded | Threaded | Whole Thread (17) | Ignore Thread Prev | Next
Author: pekinrobin 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 78325  
Subject: Re: Where to keep/what do do w/ $50K? Date: 7/28/2003 9:10 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Yes, I did something similar. But I completely paid off my house -- housing is cheaper where I live!

I am not so sure of the value of pre-pay when it's only partial. In the event you have to default on your mortgage, you don't get back what you pre-paid. However, if the risk of default is very very slight, it is the way to go in my humble opinion. Getting rid of the mortgage debt is a sure thing.

Other "safe" investments have such a low interest rate that it doesn't make sense to be paying 6 percent interest on money that, if freed up, would only be earning 4 percent.

People made fun of me because they thought the stock market was returning 10 percent, yadda yadda. Now I look pretty smart because some of those same friends literally lost millions of dollars. It doesn't matter that the stock market "always" comes back in a few decades if you had Enron or UAL or any number of other so-called mainstream, sensible Fortune 100 investments.

Maybe I'm overly security oriented but I vote yes, put it toward the house note.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (17) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Dividend Growth Investing

Why Companies Buy Back Shares
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
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 Glassdoor #1 Company to Work For 2015! 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.