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DonHo-kieHi

Joined: 01/01/2005 Posts: 14806
Likes: 8220


I’m in the minority here as I just did same. Refi mortgage at 2-3% and i


Invested substantial proceeds. Historically stocks return 8-10% and yep, may be a downturn, even a big one, but history says you are gonna come out ahead. Mortgage interest is deductible…. Gains on your investments are capital. Not any different than buying on margin except you are using your money and you are in control! Even if you buy a 4% dividend stock you end up slightly ahead.
I did a 10 yr refi where old mortgage was halfway through 15 yrs. Have lower payment and substantial cash to invest with not much longer term and front end loaded deductibility of interest while I need it most.
I have portfolio such that if stocks tank I have resources to pay my expenses without selling in downturn.
Slam dunk…. jMHO

[Post edited by DonHo-kieHi at 10/26/2021 09:15AM]

(In response to this post by HokieMacDaddy)

Posted: 10/26/2021 at 09:06AM



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Current Thread:
 
  
Question for you investing types -- HokieMacDaddy 10/25/2021 10:22AM
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  My 401k is up 21% for the year. I’m loving it. -- Stork 10/26/2021 05:28AM
  The Dow and the S&P hit record highs today ** -- Brown Water 10/25/2021 7:00PM
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  All I said was the market isn't in a downturn ** -- Brown Water 10/25/2021 10:20PM
  True dat, it sure is. ** -- HokieJay 10/26/2021 12:05AM
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  Nope, our economy is in trouble. ** -- EDGEMAN 10/25/2021 8:45PM
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  Pork bellies ** -- Brown Water 10/25/2021 10:44AM
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