All Hokie, All the Time. Period. Presented by

The Lounge Board

RTFC

Joined: 08/08/2003 Posts: 6670
Likes: 3512

What's this?

Not typically good idea, but I'd like


to see a simulation of this...

You buy a house when you are approximately 30 years old - do the right things, pay house off in 20 years, contribute to retirement, buy used cars, live within your means, etc.

So at 50 you are debt free, have emergency savings and have a nest egg (smaller than some that still have 10+ years of mortgage left, but still a decent amount of money) Yes, much easier said than done, but it is possible if you are decently employed and aren't obsessed with the latest fads.

You now have (adjust all numbers here according to local salaries/home cost) say around $2,000/month that used to be mortgage payment. You set aside money for taxes and insurance, a little bit to enjoy (you've earned it) and plan to invest about $1,000 per month.

Instead of $1,000/month you invest $1,250 in low/no cost index type mutual funds, with the $250 on margin at prime +1 (maybe you can't get that kind of deal with small amounts, but I got a LOC for my business cash flow with those terms - always paid off within a month).

Assuming an average market, what would be the net value over the next 15-20 years if you retired and started taking distributions at 65-70?

(In response to this post by Hokie1992)

Posted: 12/13/2018 at 11:20AM


+0

Insert a Link

Enter the title of the link here:


Enter the full web address of the link here -- include the "http://" part:


75
Hide This

Current Thread:
 
  Ever a good idea to use borrowed money to invest in the stock market? -- Hokie1992 12/13/2018 06:43AM
  Nah, just go ahead and leverage yourself to your eyeballs and invest on -- Tafkam Hokie 12/13/2018 6:39PM
  If the answer is no, does that mean no one who has a mortgage should ever -- SteveInBaltimore 12/13/2018 3:44PM
  Only if you are cheating ** -- bigbadbird 12/13/2018 12:35PM
  Do you have a time machine or insider knowledge? ** -- Baltimore Hokie 12/13/2018 11:49AM
  Not typically good idea, but I'd like -- RTFC 12/13/2018 11:20AM
  A wise man once told me this about investing.. -- MCL3 Hokie 12/13/2018 11:13AM
  Seems a pretty terrible idea. ** -- reestuart 12/13/2018 10:12AM
  My father clears $100k+ a year spending 10 to 15 hours a week trading -- MilwaukeeHokie 12/13/2018 09:53AM
  Venezuelan currency futures ** -- CrystalCoveHokie 12/13/2018 09:52AM
  I suggest using it 10k loan to speculate in FOREX options... -- 81_Hokie 12/13/2018 09:23AM
  Google Investment Pyramid, and see where buying stock on margin is. -- Hokie360 12/13/2018 08:59AM
  Only if you can afford to lose it ** -- Vienna_Hokie 12/13/2018 08:58AM
  If you need to ask the lounge, don't do it ** -- ScottsdaleHokie 12/13/2018 08:54AM
  Best advice ever. ** -- King Jaffe Joffer 12/13/2018 10:30AM
  Why tie up your safest asset in the performance of risker assets -- One4VT 12/13/2018 08:44AM
  Not to go all Dave Ramsey, but for the vast majority of people your -- Tafkam Hokie 12/13/2018 6:41PM
  Oh, yeah, good point. don't mess with the solid foundation. ** -- `lag 12/13/2018 09:33AM
  Preach it brother! ** -- EDGEMAN 12/13/2018 08:56AM
  No. If you don't have it outright to invest yet, don't do it. -- UEMcGill 12/13/2018 08:36AM
  My uncle did it once, but... -- EDGEMAN 12/13/2018 08:31AM
  If that is your thinking, sell the house, put the equity into mutual funds -- Femoyer Hokie 12/13/2018 07:54AM
  I wouldn't do it -- Pylons 12/13/2018 07:38AM
  It can work but the odds are pretty good that it won’t. ** -- CPRVHokie 12/13/2018 07:35AM
  Just been one of my rules never to do that... -- `lag 12/13/2018 07:00AM

Tech Sideline is Presented By:

Our Sponsors







vm307