Quote:
Originally Posted by Descant
First, I agree with Gary.
Second, I have no knowledge of Dave Ramsey, but if you own only one house and have only one job/business,. risking that house on investments is not a good plan. Interest rates/quality bonds right now are close to zero. In 2008/2009 the markets tumbled and it wasn't just a two year correction. It took 8 years to START to recover. Can you hold out for 8-10 years without depleting capital?
If you have only one house, one job (source of income) and back up assets that produce less income (not unrealized capital gains (losses) than the monthly mortgage payment for three years, when the economy turns, you could be zero job and zero house, and not much in other assets. Talk to your elders who lived through the depression: put a safe roof over your head, no debt, and then start doing "investments." Obviously, some of this can be in parallel and you want to max a 401(k).
|
It’s an extremely conservative financial plan which is fine just wanted to correct you. After the 2008/2009 mortgage crisis it did not take 8 years to recover the real estate and stock market. It really only took 5 years to exceed levels prior to the crisis.
Sent from my iPhone using
Winnipesaukee Forum mobile app