tag:blogger.com,1999:blog-5465015914589377788.post4408344440517432599..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Is a 15% Return High or Low?Michael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-5465015914589377788.post-39760868941091395912013-05-09T09:28:19.910-04:002013-05-09T09:28:19.910-04:00@Anonymous: That's a good point. An $80,000 ...@Anonymous: That's a good point. An $80,000 mortgage at 20% isn't too bad. A $500,000 mortgage at 3% is worse. But still owing $400,000 on your mortgage 5 years later when rates have risen to 9% is a disaster. (This is not a prediction; it is just one possible future.)Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-85486296280412359462013-05-09T09:17:34.529-04:002013-05-09T09:17:34.529-04:00You know it's not the topic of the post, but I...You know it's not the topic of the post, but I have to point out that anytime anyone talks about the bad old days of mortgages at 20% they never mention that also back then you could afford a home on one income. I'd gladly trade my 3% mortgage for 20% if I could have paid $80,000 for my house instead of $500,000.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-81661414432327975472013-05-08T19:08:14.527-04:002013-05-08T19:08:14.527-04:00I would be more than happy to get 4% real returns ...I would be more than happy to get 4% real returns until forever. <br /><br />I figure a healthy a dividend and ETF portfolio into the 7-figures, a paid off home and some pension money should do the trick.<br /><br />15% returns would definitely accelerate the plan though Michael :) My Own Advisorhttp://www.myownadvisor.canoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-12942180421332084562013-05-08T10:44:10.645-04:002013-05-08T10:44:10.645-04:00@Glenn: I prefer to think in terms of real return...@Glenn: I prefer to think in terms of real returns (above inflation) as you mention. I'm hoping for 3-4% real returns from stocks over the long term, but I'm not planning to retire until I'd be safe with 0% real returns.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-77234651398076540072013-05-08T08:42:14.256-04:002013-05-08T08:42:14.256-04:00My understanding is that we should expect 6%-7% on...My understanding is that we should expect 6%-7% on equities over the long term. So when interest rates are 1%, for my personal purposes I still assume 6%. And when interest rates are 15%, I still assume 6%. <br /><br />However I think the much more important number is the difference between inflation and interest earnings. If inflation is at 12% and you're earning 11%, then you're actually going backwards. If inflation is running at 3% and you're earning 8%, then I need to know your secret :).LifeInsuranceCanada.comhttp://www.lifeinsurancecanada.comnoreply@blogger.com