Quote:
Originally Posted by GregWeld
With these low fixed rate loans available now - there should be absolutely no rush whatsoever to hurry to pay them off.... And what you really hope for is raging inflation so that your investments produce higher yields! If you're paying 3 and making 7 it's pretty no brainer to me.
Equity in a house really doesn't produce anything except peace of mind... because you have to live somewhere regardless. The only reason anyone wants a paid off house is to have it paid off at the same time you retire - to reduce monthly costs. But even that goes away if you have more than adequate income.
If you invest - and re-invest the dividends your investments should double every 7 to 10 years... and your payment will stay fixed... and over that same period your income should increase - making your fixed payment even cheaper.
So - save now - invest now.
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Great thread, would love to sit and pick your brain one afternoon over a coke.
