millionaireontheprairie.com
Score (What’s this?)
Perlu Network score measures the extent of a member’s network on Perlu based on their connections, Packs, and Collab activity.
If you’re facing the choice between paying off your debt or investing your money for growth, perhaps my experience can offer you some insight into the best choice of your circumstances. Roughly 14.5 years ago, I had a choice between paying off my primary mortgage or investing a six-figure lump sum of money into the stock market. By paying off the mortgage on my primary home, I didn’t invest as much as I could have in the stock market as soon as I possibly could. Had I been as wise then as I am now, I would’ve invested that lump-sum of cash and continued with my life-long habit of investing a chunk of my paycheque every time I got paid.
In short, it’s a skim from every dollar you invest and that money is spent to pay salaries & overhead to make the investment available to you. However, if you want to pay a 2% MER (or higher!) on your investments, instead of a 0.25% MER for the same investments, then you are free to do so. Without a lottery win, inheritance, or sizeable payout from somewhere, it’s going to take a good amount of time to build an investment portfolio that’s capable of replacing your income. It’s best to make mistakes with small amounts money than with large amounts of money.
Banks take money from depositors then lend it to borrowers to earn money. Banks lend money to people at rates that are higher than what they pay to their depositors. If the bank owes Depositor 1% per year on a $10,000 bank account, then the bank has a $100 liability since it has to find a way to pay $100 to Depositor in a year’s time. Borrower has promised to repay the bank $500 in a year’s time, because 5% of $10,000 is $500.
’s great insight is that house prices drop as interest rates rise. In the housing market, rising interest rates are very strongly linked to decreasing housing prices. Today, twenty years later, I’m not so sure that buying a house would be a good financial move for me. It’s not too, too crazy to believe that the bond market will push the five year rate up by 50 basis points each year for the next five years.