Yeah, it's a very common skill along with tipping a minimum of 50% [i][/i][u][/u] of any restaurant check.

Sorry meant to say 2005 for the 401k side also.

There are maximum contribution amounts annually for a 401k. You could have invested what would have been your mortgage payment and maxed out the 401k mid year ish every year. Best of both worlds.

+1, unless you had an option for company stock and your company stock did exceptional i am not sure how you got 400%. Is 400% with contributions? I was with Fidelity and other then company stock there was no way to see a return that high.

i am up 25% for year to date currently. like i say learn the basics and stick to it. people panick and act like the world is falling then sell low and stay out while money is being made

Hop, there's a special circumstance in recent years that has made it feasible to say it's better to have the mortgage - because of the unusually low rates.

Example: IF I have a $100,000 mortgage at 4%, I won't pay $4000 total in interest for the year because the principal is decreasing with each monthly payment. So, it's a little less, estimate 3.5%, or $3500.
Note that I get to deduct that interest when I file my income tax, so I shave some more off that $3500.

Now, with the "bar" set at 3.5%, can I invest the $100,000 and come out ahead? Any return greater than 3.5% is extra. On average, the S&P certainly beats that, especially over several years, often by a lot. You wouldn't even have to get lucky to beat it. Let's say I beat that and do 5%. I'm ahead by more than $1500 (remember that tax write-off on the mortgage interest). The second year, I now have $101,500 to invest, while at the same time, the interest on the mortgage decreases as the principal continues to decrease. It will be even easier to make more than what I pay in interest.

If I paid the $100k mortgage off, I don't have the note, but I don't have any investment return, so my net is $0 vs. $1500 in the first year alone if I keep the mortgage, but manage to make a mere 5% return on the investment. If the house value is increasing, it increases the same either way, so nothing lost there.

Yes, without the mortgage payment, I could start a new investment fund at $0 balance, but it would take a long time to build it up to the point it was making what I would make if I kept the mortgage AND the $100k (invested, of course).

The story would be different if that mortgage was 8%, and that's why the decision on what to do depends on the mortgage rate, and conservative market estimates.

Not defending high gain return claims as I don't know one way or the other, BUT..... you can't simply compare the S&P 500 to an investment result as apples to apples, EVEN if all they owned is the S&P 500. How you ask? Well, the S&P 500 must ride out all of it's downward spirals and then climb back to the next peak. Some of the largest gains I have made were from selling high, staying out of the market for a while (which the S&P 500 can't do), then buying back in at a much lower share price, catapulting my gains on the next rise.

I’m going to have to see that return on a statement.

That's more in line with my thinking.

Anything that can go up 400% can go down 400%, it's only real once the money is in your hands!

Ever heard of a housing crash? ....or even a neighborhood crash? ....an area that you thought was great 3-5 years ago suddenly gets blight for some reason (and there are many many reasons)

I'm fixing to start asking for screenshots of P/L pages.

My definition of having "made it" has always been having paid off my mortgage. From that point I am working for myself and I can put my money where I want it.

That said, I do not fully buy into the Dave Ramsey philosophy of all debt is bad debt. In times like now where it is so cheap to borrow, a very strong case can be made to keep yourself leveraged.

Heres a tip for you. My top mutual fund YTD is 55%. MSIF

It really depends on your situation, how close to retirement you are, and your risk tolerance.

Debt on your house, and putting that equity into other investments (like stocks, or even more real estate) is more risky. The older you get, less risk you take.. There is no right answer with this, but you need to understand the total risk of you portfolio of assets, and that needs to be inline with your risk tolerance.

100% of foreclosures happen on houses with a mortgage per Dave Ramsey