Had a great time at a combined birthday party for a few of my friends. We get together often, bring food and happy faces and spend the night socializing and making sure that nobody goes without sex on their birthday. I do have some wonderful friends!
Spent Saturday recuperating from the birthday party and working on my financial plan. I can either purchase a $300,000 house now and pay the mortgage off over the next 15 years, or I can invest the money I would have spent on mortgage payments and pay cash for a $900,000 house. Just to be clear, in case anyone is saying to themselves that it is better to have a mortgage and get a tax break. There is no way you will save $600,000 in tax breaks over a 15 year loan.
If I were starting out again today at 20 with a decent job, I would invest at least $2,000 a month into a mutual fund. After 15 years, withdraw $300,000 and pay cash for a house. That should leave around $600,000 in the fund depending on how well it has performed it could be a lot more or slightly less. Another 5 years of continued $2,000 investments and I would retire at 40 with a house and over $800,000 invested. Even at a safe 5% investment rate that would give me $40,000 a year which should be plenty with no house payment.
Oh well, starting out now, I should be able to make that happen by the time I am 62. At least I know I won't have to be a greeter at Wal-Mart just to make ends meet.
Spent Saturday recuperating from the birthday party and working on my financial plan. I can either purchase a $300,000 house now and pay the mortgage off over the next 15 years, or I can invest the money I would have spent on mortgage payments and pay cash for a $900,000 house. Just to be clear, in case anyone is saying to themselves that it is better to have a mortgage and get a tax break. There is no way you will save $600,000 in tax breaks over a 15 year loan.
If I were starting out again today at 20 with a decent job, I would invest at least $2,000 a month into a mutual fund. After 15 years, withdraw $300,000 and pay cash for a house. That should leave around $600,000 in the fund depending on how well it has performed it could be a lot more or slightly less. Another 5 years of continued $2,000 investments and I would retire at 40 with a house and over $800,000 invested. Even at a safe 5% investment rate that would give me $40,000 a year which should be plenty with no house payment.
Oh well, starting out now, I should be able to make that happen by the time I am 62. At least I know I won't have to be a greeter at Wal-Mart just to make ends meet.