Is there something better than living off someone elses money..
That is what a loan is.. Never pay off more than ur normal payments ..
When u pay early on a loan all u are doing is giving up ur liquidity..
Quote:
Originally posted by JRF
Dear CD Folks,
Given the bleak financial outlook and fears of recession, what do you feel you would prefer to do on the Mortgage / RRSP stand.
From what ever the monthly savings you could afford to,
1. Would you consider paydown your mortgage principal ?
2. Continue to increase your cash balance in Bank (on GIC ofcourse).
3. Invest in RRSP (Market condition ???)
4. Invest in Stock.
As we all know, if the principal continue to remain high then you will be paying considerably higher interest which might even outcast the interest you could receive from GIC if that additional amount was even deposited, not to rule out there will be tax on the interest you have earned.
Unlike American's we do not get a tax break on the interest we pay on our mortgage but again the Smith M couldn't be my cup of tea (possibly for many as the bellwethers going belly up).
Cheers..
Quote:Dude, it's the other way round - the bank is living off your money.
Originally posted by dudewheresmycar
Is there something better than living off someone elses money..
That is what a loan is.. Never pay off more than ur normal payments ..
When u pay early on a loan all u are doing is giving up ur liquidity..
They appraise the property, check your credit, put a lien against the property and then lend you money - collecting a handsome interest.
While you slog your a** off working a full-time corporate job, their executives live like medieval robber barons.
And if they did make a mistake lending you money, no worries - Uncle Sam is there to bail them out.
How? Again by taking your hard earned money and giving it to them robber barons.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Mr. Car Doondnewale Saheb,
Your point is right if there has been a 0% APR on the mortgage otherwise it is the way Pratickm has put.
I really wonderful how the public outcry on the bailout is fully shadowed. oh! I forgot, didn't the politicians play the same security / integrity card to fool the public again.
Quote:
Originally posted by pratickm
Dude, it's the other way round - the bank is living off your money.
They appraise the property, check your credit, put a lien against the property and then lend you money - collecting a handsome interest.
While you slog your a** off working a full-time corporate job, their executives live like medieval robber barons.
And if they did make a mistake lending you money, no worries - Uncle Sam is there to bail them out.
How? Again by taking your hard earned money and giving it to them robber barons.
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The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
Quote:
Originally posted by pratickm
Dude, it's the other way round - the bank is living off your money.
They appraise the property, check your credit, put a lien against the property and then lend you money - collecting a handsome interest.
While you slog your a** off working a full-time corporate job, their executives live like medieval robber barons.
And if they did make a mistake lending you money, no worries - Uncle Sam is there to bail them out.
How? Again by taking your hard earned money and giving it to them robber barons.
Well Said
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Live and Let Live
Debt is going to be a big taboo in this situation, so do Mortgage.
Today, wall street might be preparing for another bloodbath... I am expecting a huge sell off in response to the panic selling in Asian stock market.
Any known (stable) RRSP fund getting affected in this market ?
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The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
Location: carl sagan's universe
Posted on: 24-10-08 09:06:06
You are right about the US markets drawing blood initially.
The futures are frozen in Chicago. Will resume at 9.30 am EST. see the thread on US in the future.
mutual funds that have given pos returns this year are bond funds.
Note it has been the global funds that have given the best returns.
The notion was that Canadian bond funds would also give a good return but though they are in poitive territory the returns are smaller in comparison
http://www.morningstar.ca/globalhome/industry/fundtable.asp?quick=finder&currview=2&Sponsor_ID=*&Fund_Type=6G&RRSP=Y&load_struct=*&total_asset_value=*&Expense_Ratio=*&Rating_3y=*&sort1=R1y&findord=&top=50&Submit2=Show+Funds&nodata=0 global
http://www.morningstar.ca/globalhome/industry/fundtable.asp?quick=finder&currview=2&Sponsor_ID=*&Fund_Type=64&RRSP=Y&load_struct=*&total_asset_value=*&Expense_Ratio=*&Rating_3y=*&sort1=R1y&findord=&top=50&Submit2=Show+Funds&nodata=0
If the current scenario of interest rate cuts continue then bond funds are expected to further give better returns.
But despite that, there is a school of thought that if the world financial system loses the confidence of the general public, even that will end up being a zip.
As you know certain money market funds 'broke the buck'
in the US- which was at one time considered inconceivable.
The current situation is something unprecedented in the lives of the best of the economists and nobody can wrap their heads around it.
So if there is any CD wants to show their prowess, he/she will be quoted and read about in textbooks for some decades.
Location: carl sagan's universe
Posted on: 24-10-08 09:09:14
You are right about the US markets drawing blood initially.
The futures are frozen in Chicago. Will resume at 9.30 am EST. see the thread on US in the future.
mutual funds that have given pos returns this year are bond funds.
Note it has been the global funds that have given the best returns.
The notion was that Canadian bond funds would also give a good return but though they are in poitive territory the returns are smaller in comparison
http://www.morningstar.ca/globalhome/industry/fundtable.asp?quick=finder&currview=2&Sponsor_ID=*&Fund_Type=6G&RRSP=Y&load_struct=*&total_asset_value=*&Expense_Ratio=*&Rating_3y=*&sort1=R1y&findord=&top=50&Submit2=Show+Funds&nodata=0 global
http://www.morningstar.ca/globalhome/industry/fundtable.asp?quick=finder&currview=2&Sponsor_ID=*&Fund_Type=64&RRSP=Y&load_struct=*&total_asset_value=*&Expense_Ratio=*&Rating_3y=*&sort1=R1y&findord=&top=50&Submit2=Show+Funds&nodata=0
If the current scenario of interest rate cuts continue then bond funds are expected to further give better returns.
But despite that, there is a school of thought that if the world financial system loses the confidence of the general public, even that will end up being a zip.
As you know certain money market funds 'broke the buck'
in the US- which was at one time considered inconceivable.
The current situation is something unprecedented in the lives of the best of the economists and nobody can wrap their heads around it.
So if there is any CD wants to show their prowess, he/she will be quoted and read about in textbooks for some decades.
