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Consider buying a small investment property. Pay cash. If you're able to get $1000 to $1200 for rent you should clear $500 to $700 per month yielding roughly 6 to 8% annual exclusive of depreciation and tax write offs.
If you were to pay off your debt and then take the remaining and start a vangaurd fund, and then every month deposit the amount you were going to pay on your car and mortgage into the fund, after 2017(when the house is supposed to be paid off) you will have more than 100k.
I want an investment, preferably a mutual fund with one of the major firms that does the following:
-Stable principle
-Pays current income preferably monthly but quarterly will suffice.
-Stability of principal is more important than the income. In other words I accept low risk=low payout.
I want to use the income to accelerate payments for:
-Mortgage $65K payoff 2017
-Car 1 $9800 payoff 2015
-Car 2 $15000 payoff 2015
No credit card debt. I have retirement and emergency fund covered.
After discussing with my wife we decided not to payoff the debts all at once with this. We want to preserve the principal and accelerate the payments with this income.
Ideas?
Good idea as long as the interest rate on your debt is much less than the return you can expect with a low risk market investment. If the interest on your mortgage is 10% and a diversified mutual fund is earning 12%, then it doesn't make any sense to put the money in the fund. It would be better off to pay down the debt.
First RMD. If you have no investments you should start with what you have and look for a good balance of mutual funds. You might as well go with a Roth here since this is money you seem to have in hand so this is after tax and I would suggest all of it. If you have other investments and those are doing well just plus them up and pay down the debt on the two cars. Keep the mortgage.
Quote:
Originally Posted by RMD3819
I want an investment, preferably a mutual fund with one of the major firms that does the following:
Quote:
Originally Posted by RMD3819
-Stable principle
-Pays current income preferably monthly but quarterly will suffice.
-Stability of principal is more important than the income. In other words I accept low risk=low payout.
I want to use the income to accelerate payments for:
-Mortgage $65K payoff 2017
-Car 1 $9800 payoff 2015
-Car 2 $15000 payoff 2015
No credit card debt. I have retirement and emergency fund covered.
After discussing with my wife we decided not to payoff the debts all at once with this. We want to preserve the principal and accelerate the payments with this income.
Ideas?
Lincolnian not everyone is cut out for property management. He could buy and flip property but if they are not good with that you can take a bath doing speculation like that.
Quote:
Originally Posted by Lincolnian
Consider buying a small investment property. Pay cash. If you're able to get $1000 to $1200 for rent you should clear $500 to $700 per month yielding roughly 6 to 8% annual exclusive of depreciation and tax write offs.
I agree with you skinnayyy but only if he has other investments. If they do not have any retirement fund started yet that should be the priority and that would make a nice beginning to a nest egg. We also do not know how old they are and any other circumstances they might be in. Still if they have some going now I would as I mention above plus up the current investments and pay off the cars.
Quote:
Originally Posted by skinnayyy
If you were to pay off your debt and then take the remaining and start a vangaurd fund, and then every month deposit the amount you were going to pay on your car and mortgage into the fund, after 2017(when the house is supposed to be paid off) you will have more than 100k.
I just checked the charts and I see what you mean. That said, you can't buy past performance and i'm not after the best performing investment.
I still vote for BRK.B because of the quality of the holdings it has.
i like berkshire too . i think i heard warren bought heinz today for 28 billion. boy he must relish that company.
i guess he is trying to ketchup to bill gates lol
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