Tiny Houses

[NCPitt]

The projected numbers .
But risk makes those numbers uncertain and timeline length increases that variability .

Its why you can get a much lower mortgage rate for a 10 year versus 30 year-
Because the bank is taking on more risks.

I don’t find the company vs personal finance analogy compelling at all .
A company is a legal entity , whose bankruptcy impacts debtors .
Personal bankruptcy affects so much more for such a much substantially longer time .

The longer the timeline, the lower the risk for equity investing, based on history. Let's be clear, though. I used the assumptions in your post. You hadn't mentioned anything about risk up to that point.

But risk is definitely a factor. People have different risk profiles and will act accordingly. I choose a risk-averse portfolio approach because I have no need to take risks. I did take risks when I was younger because I had time to make up for bad gambles. But, again, that is a personal choice and has nothing to do with projected financial based on historical averages.

Companies and personal choices for debt are similar, regardless of whether you find it compelling. Both are using other peoples' money for their own investments.

 

[NCPitt]

Let me ask you a simple question

Since , you are very confident in this return -
If I give you $100k to invest for me, will you guarantee me at least an 8% return on investment .
I’ll be happy to have that contract drawn up .
You can keep 2 % in excess of that guaranteed return .
Seems like easy money for you , right ?

Suddenly you're anti-investing due to risk? Before you were arguing that $1k per month investments were better than $100k upfront. Can you guarantee 8% or even 5% on your monthly investment plan?

 

[PittPharm2002]

Suddenly you're anti-investing due to risk? Before you were arguing that $1k per month investments were better than $100k upfront. Can you guarantee 8% or even 5% on your monthly investment plan?

No
But I’m not making the projections about why it’s a better financial idea to maintain debt longer .

Its why I noted without a mortgage you now have options for that money , including investing - and taking on more risks as a result .

Lots can happen in a decade - and I’ll repeat again, nobody ever says “I wish I had a mortgage longer !”

 

[NCPitt]

No
But I’m not making the projections about why it’s a better financial idea to maintain debt longer .

Its why I noted without a mortgage you now have options for that money , including investing - and taking on more risks as a result .

Lots can happen in a decade - and I’ll repeat again, nobody ever says “I wish I had a mortgage longer !”

If you kept the mortgage longer, you would have even more flexibility due to having additional cash.

If I were greedy, I could very easily say, "I wish I wouldn't paid off that mortgage and put it in the market". The market has soared since 2005. Anyone with common sense would agree with that.

 

[PittPharm2002]

If you kept the mortgage longer, you would have even more flexibility due to having additional cash.

If I were greedy, I could very easily say, "I wish I wouldn't paid off that mortgage and put it in the market". The market has soared since 2005. Anyone with common sense would agree with that.

Which is why economics is an entirely retrospective field.

 

[NCPitt]

Which is why economics is an entirely retrospective field.

LOL. You have no clue.