| mortgage or money in the bank? What to do. |
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redview
New Member
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Joined: 04 Oct 2005
Location: indiana
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| mortgage or money in the bank? What to do. |
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We are going to sell our place and it will allow us to walk away with enough to either, buy a house with cash and have a little left in the bank, or
buy a house with a regular mortgage, and have a lot in the bank, or
a little of both. 
How do you decide which to do?
I love the idea of a house paid off, but some security moneywise in the bank is something I would also like.
We are empty nesters, in our fortys.
Both working.
I thank everyone for their input.
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Tue Oct 04, 2005 4:47 pm |
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Riz
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Joined: 22 Mar 2005
Location: San Francisco
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| Re: Post subject: mortgage or money in the bank? What to do. |
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I would say, put enough money down (on the new house) where you can afford it without stressing. The rest, put up in the bank and let it accrue interest. The number one priority (I would think) is RETIREMENT. Yes, it would be good to have a house paid off. But it would be worst not to have any money in the bank. Besides, your house is going to pay for itself in the long run. For example, if you sell your current home and you have capital gains of 500k. I would take about 150k to buy another home. The remaining 350k I would put in the bank. Putting down 150k, your mortgage should real easy to manage, since both of you are currently working! Good Luck.....
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Tue Oct 04, 2005 6:01 pm |
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sayyes
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Location: Newport, RI
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quote:
The rest, put up in the bank and let it accrue interest.
Please don't do this. Put it in the stock market or a money market account (or ideally, some in both) depending on the level of risk you'd like to take on.
You say that you're in your 40s. I would put 60% in the stock market (an index fund is the easiest way to go) and 40% in a MMA. If you're interested in an online MMA that pays high interest rates and is FDIC insured PM me and I will send you the link to the one I use.
Money Blog | Financial Goals Explained | Bargains Online | Refinance
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Tue Oct 04, 2005 11:55 pm |
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