tag:blogger.com,1999:blog-5465015914589377788.post3762452098874992383..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Should You Invest or Pay Down Your Mortgage?Michael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-5465015914589377788.post-82320593819729530952020-11-06T19:00:31.101-05:002020-11-06T19:00:31.101-05:00The exchange above is reproduced to remove broken ...The exchange above is reproduced to remove broken links.<br /><br />----- BHCh May 13, 2017 at 3:12 AM<br /><br />Not to pile on, but the Mortgage After Graduation article also contains the following quote: “Even at 1%, cash in the bank is better for your net worth than mortgage pre-payments simply because cash will earn a compounding return and mortgage pre-payments won’t.” This is wrong. Pre-payments on your mortgage have a compounding effect on your net worth.<br /><br />Yes. The other things she gets wrong are a matter of opinion but this one is a fact.<br /><br />In general, the referenced post demonstrates that lots of numbers nice style and pretty pictures don't equate accuracy or common sense.<br /><br />----- Michael James May 13, 2017 at 8:04 AM<br /><br /> @BHCh: In general, I find that younger people tend to do analyses that assume life will continue without variation. Older people make this mistake too, but they seem more likely to factor in the possibility of calamity. Perhaps this is because older people have experienced or watched others experience more calamity.<br /><br />----- BHCh May 13, 2017 at 8:43 AM<br /><br /> Agreed. I like the initiative and she is obviously making a different type of person think and plan, which has to be good. Still, it makes me smile when she is selling a course for "experienced investors". She couldn't have been an investor during the last 2 crashes, so it's like eggs teaching a chicken.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-46411942740180447842017-05-11T11:59:14.312-04:002017-05-11T11:59:14.312-04:00@aB: While at work I often like to joke that I com...@aB: While at work I often like to joke that I come into work every day knowing that this day could be the last based on management whims. I usually get stunned looks in response.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-40040949522369789862017-05-11T11:54:06.346-04:002017-05-11T11:54:06.346-04:00"Unfortunately, people often overestimate the..."Unfortunately, people often overestimate their job security. One reason seems to be that the thought of losing our jobs is so scary that the only way to get through the day is to believe that our jobs are secure."<br /><br />Ouch .. truth hurts.aBnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-20104996977232765202017-05-11T08:12:22.723-04:002017-05-11T08:12:22.723-04:00@Potato: That's why I put building an emergenc...@Potato: That's why I put building an emergency fund ahead of paying down the mortgage.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-54850068145662288502017-05-11T07:43:06.906-04:002017-05-11T07:43:06.906-04:00And to make it more complicated, if you are worrie...And to make it more complicated, if you are worried about job security, you can't pay the mortgage down <i>too</i> aggressively, as you still need liquid savings/investments to pay the monthly mortgage payments if you do lose your job. Potatohttp://www.holypotato.netnoreply@blogger.com