Comments for Best US Stock Tips

Comment on Why paying off mortgage instead of investing in the stock market? by jeff410

jeff410 — Thu, 11 Mar 2010 14:40:18 +0000

At that rate you would just about breqk even, after inflation. The 10 percent figure is a nominal rate. You should get over six percent on your house. The market is also riskier than paying off your mortgage. Real estate is also a hedge against inflation. The moral is balance risk.

Comment on Why paying off mortgage instead of investing in the stock market? by voluntarheel

voluntarheel — Thu, 11 Mar 2010 14:24:54 +0000

Some of it is personal preference, too. Some people like the liberation of not having any debt whatsoever. Others want to make as much money as possible. Both have risks. If you pay off your home early – you risk not making enough in the stock market. On the other hand if the market doesn’t do well you are in a better position by having less debt. But if you neglect paying on your home for investing purposes you run those same risks (just in the other direction). Like most have already said – moderation is the probably best for most people unless you have an aversion to debt (pay the home off early) or an incredible tolerance for risk (invest more).

Comment on Why paying off mortgage instead of investing in the stock market? by ptstrobl

ptstrobl — Thu, 11 Mar 2010 14:02:44 +0000

You’re absolutely correct. Also, keep in mind that the interest you pay is being reduced over time, so it’s less and less through the years.

If you throw inflation into the mix, with a fixed mortgage, you are effectively paying 3-4% less every year.

Your extra cash is much better off being invested–first a cash reserve (3-6 months expenses in case you are temporarily disabled or lose your job), and then hit your accounts with tax benefits like Roth IRA and your company’s retirement plan.

Of course, none of the investments do anything for a sound financial plan if you aren’t properly insured.

Comment on Why paying off mortgage instead of investing in the stock market? by enoriverbend

enoriverbend — Thu, 11 Mar 2010 13:14:28 +0000

If all else was equal, then you’d be right. But the two aren’t equal.

In the case of the mortgage, your imputed return on paying it off is guaranteed. Since stock market returns are not, and since they do tend to be volatile, your comparison is not quite apples-to-apples.

A closer comparison would be paying off the mortgage versus investing in government bonds.

As far as the tax deductions go, that’s certainly a factor, but not the only or most important one. After all, you do actually have to pay for the interest, and you’re only getting part of it back in tax breaks. (And of course people vary in how much of a tax break it is, depending on income and itemization.)

I am not meaning to say that one choice or the other is clearly better; they have to be weighed according to your tax situation, your other investments, your appetite for risk, etc.

Comment on Why paying off mortgage instead of investing in the stock market? by Man of La Mancha

Man of La Mancha — Thu, 11 Mar 2010 13:09:29 +0000

Lets keep it simple. You did not indicate your age and that is important when talking about financial decisions….the younger the are the more time you would have to recover when the stock maket turns…and turn it will…on the other hand i will tell you what i did and it has worked out perfectly…..at age 32 i was able to start making additional payments on my house against the principal, i did them lump sum once per year, based on some bonus that i would get at work….i did invest 5% of my gross salary in basically safe instruments…about 10 years into that some money came my way and contrary to a lot of advise to invest it in the market i went ahead and paid of my mortgage [ l loved and still love my house and the neighborhood i live]….it has been the best decision i have ever made….my family and myself will always have a roof over our head…things did get tough a few times but the roof was there and paid for…so take a hint and protect our life and family…pay the mortgage

Comment on Why paying off mortgage instead of investing in the stock market? by Harsh T

Harsh T — Thu, 11 Mar 2010 12:10:15 +0000

You should try to balance. Payoff mortgage would indicate more investment in real estate and you don’t want to bet your future in one area. So don’t go extreme either ways.

Comment on Can anybody tell me what it takes to a stock broker? by ChicagoBride

ChicagoBride — Thu, 11 Mar 2010 11:25:14 +0000

If you don’t like interacting with people then this might not be a good fit for you. It is essentially a sales job, and you would have to call a lot of people every day. Usually there is a low base salary and the majority of your income is from commissions.

Comment on Can anybody tell me what it takes to a stock broker? by Moey

Moey — Thu, 11 Mar 2010 10:59:24 +0000

Learning how to compose a sentence with correct grammar might be a start. Be more aware of what you are doing at all times. Then you will succeed no matter what you try. Take criticism with a grain of salt, get better, not bitter. Good luck sugar!!!

Comment on can i be a stock broker fully online? by Corey

Corey — Thu, 11 Mar 2010 08:17:38 +0000

You could trade stocks online using an online brokerage account, which i think you trying to refer to. However, trading in the stock market poses risks and if your looking at only 21k a year then maybe investing isnt the smartest choice unless you have very minimal bills. Alot can change over the next 7-8 years. Salary may go up. But i do you give you credit for thinking futuristic.

Comment on Does your auto insurance go up if someone on your insurance gets into an accident? by hmmmm

hmmmm — Thu, 11 Mar 2010 07:50:28 +0000

In Texas, YES!