I’ll preface this with the disclaimer I may be missing something obvious but considering these assumptions:
– a person has a mortgage (at say 4.5% today) and they choose to pay that off monthly (not interest only)
– the opportunity cost of this investment would be a conservative 6%/year in ETFs or REITs (of course this is tentative and an average over the long run)
(See for return references: https://www.fool.com/research/reits-vs-stocks/)
Why would a person choose to pay down their mortgage rather than invest in the markets? The pros of greater liquidity in the markets and greater diversification in REITs seem to make it the preferable choice?
For context, I am a 24M considering the best route to financial independence for myself and future family.
Thanks in advance.
In: Economics
DotCom bubble. I lost a ton of money in the dotcom crash and decided that acres that you own will still be acres no matter what happens to the economy but shares that you own might not be worth the paper they’re not written on.
This implies that you own acres for the purpose of enjoying acres. (Because the resale value will go down with everything else) If your sole purpose in life is to make money, good luck to you. Just hope we don’t hit a financial apocalypse.
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