quote:
The investment versus debt argument is funny to me. If the market crashes, the 5% return is gone. Will the debt be gone? The debt is garanteed , the investment income , not so much. (Unless your are in rental income and tax free bonds , but typically those don't make 5%. ) I'm just wondering how many folks were saying things similar to you in 2007. I mean, I'm not hating on you, just saying.

Well, when you conflate the interest rate over the long term with a two year crash you're not going to understand the argument.

The problem with this board/medium is none of us have the time nor space to go through the 300 different variables.

If you have assets to keep paying your debts in a downturn. If you keep your job in a downturn. If you can keep your faith in a downturn. If you don't get stupid in a bull market. Your general temperament. Every post would take an hour I don't have.

I mean, what happens if you pay off all your debt and you don't have cash left over and the market tanks, and you lose your job? What happens then? More debt.

This post was edited on 4/14/18 at 10:12 pm

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Posted by Fat Bastard

coach, investor, gambler

Member since Mar 2009

73257 posts

Posted on 4/14/18 at 10:13 pm to Teddy Ruxpin

quote:
Every post would take an hour I don't have.

bullshite!

your arse takes 18 hour flights. you have plenty time!

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Posted by crazycubes

Member since Jan 2016

5256 posts

Posted on 4/14/18 at 10:17 pm to Teddy Ruxpin

quote:
what happens if you pay off all your debt and you don't have cash left over and the market tanks, and you lose your job? What happens then? More debt.

You are really right that there are a lot of hypotheticals here.

I would never advocate paying off all debt and then live pay check to pay check because one has no more cash.

My thinking is that this isn't 2% versus 5%, it's 2% guaranteed versus 5% maybe.

For me, I enjoy piece of mind of 0% (no debt) versus what ever the market gives me.

Eta: now off to bed in my paid off house