Re: OT: Financial question?
- From: Ray Shahan <rshahan@xxxxxxxxxxxxxxxxx>
- Date: Wed, 11 Jul 2007 11:57:13 -0500
Hi all,
First, a big thanks to all who replied. I was really
impressed by the length and breadth of the advice given as well as the
number of responses.
I got many private replies to this OT posting, and they fell
into two categories: Those offering advice, and those wanting to know
what advice I got. So for those that wanted to know what advice I got
(or conclusion that I arrived at):
It really is a matter of your personal goals. There are so
many variables out of our control (for instance, what will happen to
future investment interest rates, and what will happen to the future
value of your home) that there appears no 'right answer'.
If you ask an investment counselor my question, they'll steer you into
why letting them invest your money is the right answer. On the other
hand, ask a real estate broker my question, and they'll gladly explain
the overwhelming advantages of true home ownership. Even the local
banker can convince you why CD's in his bank are 'the safe and sure fire
way to go'.
Sooo, the long and short of it is what helps make you feel secure -
money in the bank, or a house free and clear?
I'd have to say that if there is an answer overall that is more correct
than others (for those that don't have a definite goal), then that
answer would be to do all three options: Pay a little down each month on
your mortgage principle, invest some of your income (preferably into a
tax deferred 401k with matching funds), and put a little away for that
rainy day into both CD's and money market accounts (you can usually get
at MM funds without any penalties should an emergency arise). Of
course, what percentages you want to do for any/each of these categories
is another question that only you can answer (an even split always
works). All told, I've offered you nothing that you and I probably
didn't already know, but since so many folks asked to hear what I
learned, I felt obliged to share.
Again, thanks for all the replies and help, and have a great week!
<http://www.republictitle.com/>
<http://www.republictitle.com/>
Raymond Shahan
Information Systems
REPUBLIC TITLE OF TEXAS, INC. <http://www.republictitle.com/>
2701 W Plano Parkway
<http://maps.yahoo.com/maps_result?addr=2701+w+plano+parkway&csz=75075&c
ountry=us&new=1&name=&qty=>
Plano, TX 75075
direct 214.556.0202
main 972.578.8611
fax 972.424.5621
www.republictitle.com <http://www.republictitle.com/>
rshahan@xxxxxxxxxxxxxxxxx
Life is not a journey to the grave with the
intention of arriving safely in a pretty and
well preserved body, but rather to skid in
broadside, thoroughly used up, totally worn out,
and loudly proclaiming:
-- WOW!!! What a Ride!!!
________________________________
From: Ray Shahan
Sent: Friday, June 15, 2007 12:27 PM
To: HP3000-L@xxxxxxxxxxxxx
Subject: OT: Financial question?
Hi all,
Ok, before I even ask this question, I do not have 150k
sitting in a bank (I wish I did, though).
Does anyone know whether or not it's better to save 100.00 a
month into savings, or buy down your mortgage at 100.00 a month
(assuming you still have decades to pay on the mortgage)?
I did go to USA Today WEB page to use their calculators. I
found out that given 150,000 in the bank drawing 6.78 over 30 years, and
a mortgage of 150,000 at 6.78 for 30 years - you'd not make enough off
of the interest gained on the bank savings to actually pay off your
mortgage after 30 years (you'd be roughly 70,000 short). With that
admittedly simple and unscientific test, I'd say that it's better off
buying down your mortgage?
Thanks, and have a great weekend!
<http://www.republictitle.com/>
<http://www.republictitle.com/>
Raymond Shahan
Information Systems
REPUBLIC TITLE OF TEXAS, INC. <http://www.republictitle.com/>
2701 W Plano Parkway
<http://maps.yahoo.com/maps_result?addr=2701+w+plano+parkway&csz=75075&c
ountry=us&new=1&name=&qty=>
Plano, TX 75075
direct 214.556.0202
main 972.578.8611
fax 972.424.5621
www.republictitle.com <http://www.republictitle.com/>
rshahan@xxxxxxxxxxxxxxxxx
Life is not a journey to the grave with the
intention of arriving safely in a pretty and
well preserved body, but rather to skid in
broadside, thoroughly used up, totally worn out,
and loudly proclaiming:
-- WOW!!! What a Ride!!!
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