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I think he is talking about avoiding a large exposure to volatile assets, but if so, then one is likely holding bonds with a return less than the mortgage, in which case one would do better to ditch the bonds and then pay the mortgage off.
Maybe just ditch the bonds. Why do something right and negate it by doing something so wrong?
Maybe just ditch the bonds. Why do something right and negate it by doing something so wrong?
Ok, well then you have substantial sequence risk. This is why I always say that it is up to one's individual risk tolerance. With a sufficiently high risk tolerance, sure, keep the mortgage. However not everyone can, does, or should have that risk tolerance.
You failed to identify the territory. I just made a guess. With all the "skipt" n and the reverse algebra I'm just trying to make some sense out of your and cnicole1's posts.
Ok, well then you have substantial sequence risk. This is why I always say that it is up to one's individual risk tolerance.
I said before that I do not have substantial sequence risk. Having too much money tied up in a house is more risky to me than having the extra liquid cash from a mortgage that is subsidized by the government and inflation favored.
Sorry, I don't have sequence risks. A prudent investor can avoid or minimize any risk.
Quote:
Originally Posted by ncole1
You cannot avoid sequence risk.
Quote:
Originally Posted by honobob
Again wrong.
Quote:
Originally Posted by honobob
I said before that I do not have substantial sequence risk. Having too much money tied up in a house is more risky to me than having the extra liquid cash from a mortgage that is subsidized by the government and inflation favored.
Actually what you said before and argued was that you didn't have sequence risk and now you are turning to say substantial which is subjective. You were wrong in your orginal statement that you didn't have it when clearly you do
Actually what you said before and argued was that you didn't have sequence risk and now you are turning to say substantial which is subjective. You were wrong in your orginal statement that you didn't have it when clearly you do
Sorry you jumped to an incorrect conclusion.
No I do not have sequence risk in that it would affect my portfolio or spending in any meaningful way. I have diversified income streams. While it's true that parts of my portfolio can be impacted it would be so minimal or avoidable that it is not a consideration. Zero risk would be included no substantial risk.
No I do not have sequence risk in that it would affect my portfolio or spending in any meaningful way. I have diversified income streams. While it's true that parts of my portfolio can be impacted it would be so minimal or avoidable that it is not a consideration. Zero risk would be included no substantial risk.
You do have sequence risk though so that wouldn't be included in Zero Risk. While true zero risk would be included no substantial risk, not substantial would not be in the zero risk category. A square is also a rectangle but a rectangle isn't a square.
You can't say you don't have it and then say you do. You have it but to you it's not substantial
You do have sequence risk though so that wouldn't be included in Zero Risk. While true zero risk would be included no substantial risk, not substantial would not be in the zero risk category. A square is also a rectangle but a rectangle isn't a square.
You can't say you don't have it and then say you do. You have it but to you it's not substantial
God I was trying to be inclusive to avoid you nit pickers that don't have anything to contribute.
OK based on this definition I HAVE ZERO, NADA, NONE,ZIP sequence risk! Happy? What Is a Sequence Risk?
AND zero is not substantial.
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