What would you do if you have $400K in cash ? (Frisco: 2015, how much)

[Clonelion]

Originally Posted by pharpe

If its captain obvious why are you arguing against the logic?

If the financial goal is just to live mortgage free, than do it. You can take whatever piece of mind that comes with and be happy.

If the goal it to maximize your return on 400k then it's probably not the best strategy. Personally I would get more piece of mind knowing I was allocating my assess the most effective way possible over simply owning my house outright.

This is my last post on the matter because it's beating a dead horse at this point. Good luck with your investments.

Just want to say thanks to Pharpe and others who suggested to invest in equities. That was a solid suggestion.
PM me if you are in the area, I will buy you beers.

[CCCyou]

I'd put it all in a suitcase & leave it in a Walmart shopping cart .... wait, someone already...... darn; im out of ideas.....

[UnfairPark]

I did and used it to pay off my mortgage, i already had other investments so investing it in peace of mind felt like a better decision. I must say, best ROI. As we live in a debt based society where people live beyond their means and want to feel rich, most can't even understand blessings of debt free living.

[numbersguy100]

Originally Posted by nissan

3.

Home is at a sub-4% rate, so I wouldn't bother with that. I'd pay off my 6% student loans and invest the rest in equities.

You're comparing a risky investment with a risk free investment. I'm not saying one vs the other is the right choice (it still might be equities). Just saying that you can't automatically tell yourself it's better to invest in US equities at high single digit expected return against the guaranteed return of paying off debt, even if it is low interest debt.

[NAvery815]

I've been in this situation, although the home value was a little lower. Paid off the mortgage. It felt great.

However, doing it differently this time around. The math is extremely compelling on investing vs paying off a 3.875% mortgage.

It also depends how much of your assets that represents. I don't want 100% of my assets wrapped up in my home equity. In my ideal (but still realistic) world, I'd have this allocation:
50% retirement investments
25% taxable investments
25% home equity

When the house becomes a small enough part of my overall net worth that it doesn't ding my other plans/returns to have it paid off, I like the feeling. But I would want a net worth of around $2M before paying off a 400k mortgage.

[C24L]

Originally Posted by Clonelion

1. Buy an investment home in Plano for cash and rent it out.
2. Buy a new home in Plano/Frisco and rent it out.
3. Invest in Equities
4. Payoff your own home

i would buy some stock.

[Treasurevalley92]

I would pay off my student loans and car. With the rest I would invest in stock and buy a multi unit (4 plex) apartment in a different market, possibly Cincinnati.

There are a ton of reasons I wouldn't want to buy a rental property in north Texas, but the foundation issues, high property taxes, and high cost to get into the market are are a few of them.

[Capitalprophets]

All in first hand on black jack and hit a 21 then take the money and go pay all debts, set school funds for kids, donate to charity and go travel the world.

Originally Posted by Clonelion

1. Buy an investment home in Plano for cash and rent it out.
2. Buy a new home in Plano/Frisco and rent it out.
3. Invest in Equities
4. Payoff your own home

[loves2read]

Originally Posted by TheTXGuyHere

I would give it all to the TheTXGuyHere and ask him to spend it on good things and make world a better place. LOL

Here are my suggestions

Use 80K -- Open a Jimmy Johns ( 120k - 300k profit)
Use 40k - 20% down payment on a townhome - rent it for 2k per month. ( 5k per year profit + increasing equity in house)
Use 30k -- Open a Subway

Remaining amount, I would buy a house and use the equity as collateral to get the above business started.

I guess the "open a Subway" might have backfired

[loves2read]

Originally Posted by Treasurevalley92

I would pay off my student loans and car. With the rest I would invest in stock and buy a multi unit (4 plex) apartment in a different market, possibly Cincinnati.

There are a ton of reasons I wouldn't want to buy a rental property in north Texas, but the foundation issues, high property taxes, and high cost to get into the market are are a few of them.

Or Pittsburg