About to purchase- Finance questions
Hey all, I have a downpayment on a new travel trailer and just sold my pop up last night. Thursday I will go to sign papers. They were touting 4.99% finance rates until I got the deal. Then it ju...
Forum Discussion
If you aren't making 8% on "real" investments, there's something wrong. Like wing_zealot above me said, long term. When stocks take a huge hit, you can invest while low and get quite a bit back when they do bounce back.
I currently have stock in Exelon (local power company), they usually stay around $33/share the last couple years. Current rate of return: Dividend Yield 3.68% This is pretty steady income and a solid return that I consider "safe"
I have a couple other dollars in Annaly Capital Management Inc. I believe it's a real estate investment stock. Current return: Dividend Yield 11.72%
I would consider that a higher risk because the rate of return is high and realestate is up and down.... But...none the less, combined they are 7.7% annually. These are my two biggest stocks and I just use scott trade so anyone can really do it.
If you pay someone to invest, your rate would surely be higher. My retirement fund is around 8-10% and I am not that aggressive (I need to call and change it).
Point being, if you can throw $12,000 into some simple stocks and gain 7%/year...over 6 years you will have $5000 at the end of 6 years.
If you run the loan out @ 4%, you it will cost you $1500 to borrow the money over the 6 years. Your net is $3,500 after you borrowed money. Still positive equity vs paying cash and not investing.
I currently have stock in Exelon (local power company), they usually stay around $33/share the last couple years. Current rate of return: Dividend Yield 3.68% This is pretty steady income and a solid return that I consider "safe"
I have a couple other dollars in Annaly Capital Management Inc. I believe it's a real estate investment stock. Current return: Dividend Yield 11.72%
I would consider that a higher risk because the rate of return is high and realestate is up and down.... But...none the less, combined they are 7.7% annually. These are my two biggest stocks and I just use scott trade so anyone can really do it.
If you pay someone to invest, your rate would surely be higher. My retirement fund is around 8-10% and I am not that aggressive (I need to call and change it).
Point being, if you can throw $12,000 into some simple stocks and gain 7%/year...over 6 years you will have $5000 at the end of 6 years.
If you run the loan out @ 4%, you it will cost you $1500 to borrow the money over the 6 years. Your net is $3,500 after you borrowed money. Still positive equity vs paying cash and not investing.
