"Mike Coslo" wrote in message
...
Ryan, KC8PMX wrote:
If your interest rate is less than 5%, the best loan to get is a 30
year!
It's cheap money. Paying off a house quick is foolish. And the monthly
rate is usually a hell of alot less too. Spend the difference of that
paying off bills or invest it in a mutual fund or something.



Ahh, a financial truism! This belongs with:

The stock market ALWAYS goes up!

What goes up must come down as well too. But that is the beauty of the
stock market. It is a cyclical thing. Ideally it would be like a good
sinus rhythm. It is just merely the knowledge of where to jump in at.


(It soitanly do, but over long time periods that are not relevant to
most of us who don't live over 150 years. More importantly it is what
the market is doing around the time you take your money out.)

Move your money into high yield accounts shortly before you retire, that
way you'll have more money when you retire!


Only if you know what you are doing and have a really good grasp of the
market.



I've listened to investment consultants actually pull this one out of
their hats. I know some older folk who have done this and now have
almost no retirement funds.


Yep... not for the weak or feable to try on thier own if not knowledgeable.



I have to chuckle at your truism. first, because your friend the real
estate agent uses those sort of arguments to talk you into buying
several thousand or tens of thousands more dollars worht of house.
Second is that You are saying a person who gets out of debt is foolish.


Actually the person I got this truism from and believe in it is Bruce
Williams, the talkshow host. If you do the math, it is fairly true.



Best way to not be a fool is to not go heavily into debt in the first
place. I have a 5 percent loan, but I'll pay it off quickly, I think.

I wouldn't but thats me. What I would do is see if you can refinance at all
to a lower rate. I have actually seen a interest rate recently somewhere in
the 3 percent range!! Talk about a cheap loan, hell, I would
refinance/remortgage my neighbors house if I could legally get away with it!
LOL



Instead of paying off that low interest loan quickly, one is smarter
paying
off the higher interest loans like automobiles, department and credit
card
charges, and other loans/debts.

Again, it's better to not get into a situation where you would have to
choose which loan you're paying off early.

Well, its not paying the principle that kills ya, its the interest that does
over a long time. The lesser the interest rate, the less I am interested in
rushing to pay it off extra early. Either way, one needs to do the math or
find someone who does understand real estate finance and other financal
calculations to make sure in their own individual circumstances.



--
Ryan KC8PMX

"All of us could take a lesson from the weather. It pays no
attention to criticism."