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Dec 30th, 2023
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 Paying cash for house bad idea
#13647186
07/28/20 09:26 AM
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Joined: Aug 2008
Posts: 332
franchi
OP
Angler
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OP
Angler
Joined: Aug 2008
Posts: 332 |
In 2005 i paid cash for a $330k home in a very desirable subdivision. In 15 years the home has gone up in value 45%. On the flip side i had the same amount in my 401k plan in 2015. 401k has increased 400%. And i just know the basics about investing i dont have a magical financier
If i were to do it again i would have waited until retirement to pay off the house. No brainer.
Last edited by franchi; 07/28/20 09:27 AM.
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Re: Paying cash for house bad idea
[Re: franchi]
#13647194
07/28/20 09:48 AM
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Joined: Aug 2003
Posts: 30,319
RedRanger
burro desagradable
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burro desagradable
Joined: Aug 2003
Posts: 30,319 |
In 2005 i paid cash for a $330k home in a very desirable subdivision. In 15 years the home has gone up in value 45%. On the flip side i had the same amount in my 401k plan in 2015. 401k has increased 400%. And i just know the basics about investing i dont have a magical financier
If i were to do it again i would have waited until retirement to pay off the house. No brainer.
If we could predict the future we would all be rich
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Re: Paying cash for house bad idea
[Re: franchi]
#13647208
07/28/20 10:15 AM
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Joined: May 2010
Posts: 9,192
Space
TFF Celebrity
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TFF Celebrity
Joined: May 2010
Posts: 9,192 |
You can't go wrong with a paid off home. That's money in the bank.
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Re: Paying cash for house bad idea
[Re: franchi]
#13647263
07/28/20 11:27 AM
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Joined: Sep 2008
Posts: 121,077
hopalong
Pescador Loco
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Pescador Loco
Joined: Sep 2008
Posts: 121,077 |
not having the mortgage payment freed up that cash for more into the 401k, ira, portfolio etc.
win win I would think since any of the payment money invested is likely returning interest.
" Hop, set the hook"!
hopalong 99,999
TexDawg 99,999
FJB! not my president by a long shot!
lake fork FISHERMANS COVE MARINA/reservations - 903 474 7479
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Re: Paying cash for house bad idea
[Re: franchi]
#13647350
07/28/20 12:33 PM
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Joined: Dec 2008
Posts: 2,683
redskeet100
Extreme Angler
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Extreme Angler
Joined: Dec 2008
Posts: 2,683 |
You have to look at the value of your house as money in a savings account. Calculate what you did NOT pay in interest on a 30 year mortgage, and you will probably decide to do the same thing again if you had to do it again.
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Re: Paying cash for house bad idea
[Re: franchi]
#13647355
07/28/20 12:41 PM
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Joined: Apr 2014
Posts: 8,379
Jpurdue
TFF Celebrity
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TFF Celebrity
Joined: Apr 2014
Posts: 8,379 |
The S&P 500 has gone up 62% since 2015. If you've managed 400% over that same time period you've been lottery ticket lucky with your 401K picks. If you could do that again over the next 5 years, whatever business you are in is the wrong business! You should be managing money.
"Bragging may not bring happiness, but no man having caught a large fish goes home through an alley." -A.L. www.LunkerLore.com
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Re: Paying cash for house bad idea
[Re: franchi]
#13647362
07/28/20 12:48 PM
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Joined: May 2007
Posts: 40,375
WAWI
TFF Guru
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TFF Guru
Joined: May 2007
Posts: 40,375 |
It's funny that all the "investors" on here make unpresidented returns on their money, perfectly time the market, and only pick winners. Who would have thought we were in the presence of such greatness. Hell Buffet should be down here getting investment advice.
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Re: Paying cash for house bad idea
[Re: WAWI]
#13647379
07/28/20 01:01 PM
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Joined: Jul 2006
Posts: 49,398
RATZ
Activity Coordinator
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Activity Coordinator
Joined: Jul 2006
Posts: 49,398 |
It's funny that all the "investors" on here make unpresidented returns on their money, perfectly time the market, and only pick winners. Who would have thought we were in the presence of such greatness. Hell Buffet should be down here getting investment advice. It's like everyone I've ever known has won big in Vegas 
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Re: Paying cash for house bad idea
[Re: Jpurdue]
#13647403
07/28/20 01:20 PM
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Joined: Oct 2010
Posts: 14,702
Frenzy
TFF Guru
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TFF Guru
Joined: Oct 2010
Posts: 14,702 |
The S&P 500 has gone up 62% since 2015. If you've managed 400% over that same time period you've been lottery ticket lucky with your 401K picks. If you could do that again over the next 5 years, whatever business you are in is the wrong business! You should be managing money. His 400% is likely the actual value increase including contributions.....not the rate of return on his investments.
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Re: Paying cash for house bad idea
[Re: franchi]
#13647409
07/28/20 01:23 PM
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Joined: May 2004
Posts: 13,654
Tiltman
TFF Guru
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TFF Guru
Joined: May 2004
Posts: 13,654 |
going into the next 6 months , I'd take a home paid for over investments on paper any day.
I have no faith in stocks in the current political climate.
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Re: Paying cash for house bad idea
[Re: redskeet100]
#13647449
07/28/20 01:50 PM
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Joined: Jul 2013
Posts: 590
diggerwolf
Pro Angler
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Pro Angler
Joined: Jul 2013
Posts: 590 |
You have to look at the value of your house as money in a savings account. Calculate what you did NOT pay in interest on a 30 year mortgage, and you will probably decide to do the same thing again if you had to do it again. This.
"Life should not be a journey to the grave with the intention of arriving safely in a pretty and well preserved body, but rather to skid in broadside in a cloud of smoke, thoroughly used up, totally worn out, and loudly proclaiming "Wow! What a Ride!" ― Hunter S. Thompson
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Re: Paying cash for house bad idea
[Re: franchi]
#13647457
07/28/20 01:57 PM
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Joined: Apr 2004
Posts: 5,403
bassfishinglawyer
TFF Celebrity
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TFF Celebrity
Joined: Apr 2004
Posts: 5,403 |
Dave Ramsey says pay it off. Financial planner says invest it and get a higher return. I guess we should be content that we can do either one.
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Re: Paying cash for house bad idea
[Re: franchi]
#13647468
07/28/20 02:04 PM
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Joined: Feb 2009
Posts: 38,366
Kattelyn
Little Psycho Coffee
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Little Psycho Coffee
Joined: Feb 2009
Posts: 38,366 |
How much did you save paying on interest?
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Re: Paying cash for house bad idea
[Re: Frenzy]
#13647471
07/28/20 02:08 PM
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Joined: May 2009
Posts: 8,724
Barrett
TFF Celebrity
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TFF Celebrity
Joined: May 2009
Posts: 8,724 |
The S&P 500 has gone up 62% since 2015. If you've managed 400% over that same time period you've been lottery ticket lucky with your 401K picks. If you could do that again over the next 5 years, whatever business you are in is the wrong business! You should be managing money. His 400% is likely the actual value increase including contributions.....not the rate of return on his investments. Ill bite... what in the hell were you in to get 400 percent in 5 years?
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Re: Paying cash for house bad idea
[Re: Barrett]
#13647478
07/28/20 02:12 PM
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Joined: Jul 2011
Posts: 5,289
Dubee
TFF Celebrity
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TFF Celebrity
Joined: Jul 2011
Posts: 5,289 |
The S&P 500 has gone up 62% since 2015. If you've managed 400% over that same time period you've been lottery ticket lucky with your 401K picks. If you could do that again over the next 5 years, whatever business you are in is the wrong business! You should be managing money. His 400% is likely the actual value increase including contributions.....not the rate of return on his investments. Ill bite... what in the hell were you in to get 400 percent in 5 years? Cocaine
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