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Hi Guys
It's funny how our mind/attitude works..earning more money from stocks,bonds etc. Think that the best risk free investment given cschua's scenario is to pay off bank mortgage first ! A $ saved (in interest) is more than a $ earned.Stocks/bonds move in cycles but mortgage interest don't
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Depend on the investment experience and time/effort
of individuals.
If cannot make 2.6% pa consistently, better pay off mortgage.
Or no time to do homework on investments.
Although having fully paid house does helps a bit on investment
psychology. Eg your mortgage won't screw with your mind when mkt crashes.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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(16-11-2013, 02:04 PM)opmi Wrote: Depend on the investment experience and time/effort
of individuals.
If cannot make 2.6% pa consistently, better pay off mortgage.
Or no time to do homework on investments.
Although having fully paid house does helps a bit on investment
psychology. Eg your mortgage won't screw with your mind when mkt crashes.
Agree psychology is very important.
My psychology:-
My maths is elementary. So as far as possible i try to be debt free. i feel in this way everything i own or have is really mine- now. And not the banks or some debtors. If i can not make more than 2.6% in my investment, so be it.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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