HIGH INTEREST Is GOOD - Dividends Pay for My House

HIGH INTEREST Is GOOD - Dividends Pay for My House . I came to the realization that I had too much money wrapped up in the house doing nothing. I decided to put some of it to work in the stock market utilizing a low interest fixed rate mortgage. Watch my journey as I share what I am investing in with the hopes that it will pay my monthly mortgage payment. Hopefully, at the end of the 30 year mortgage, my stock portfolio will be HUGE!!! Will I succeed or fail? This is Part 14 of the series.
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Пікірлер: 27

  • @marcfruchtman9473
    @marcfruchtman9473 Жыл бұрын

    Borrowing money to invest was a huge part of the causal factor for the great depression. I am not surprised to see this cycle happening again. But, I do find it very interesting that it is even remotely successful.

  • @nicholashudson5020
    @nicholashudson5020

    I think this is pretty smart. The catch is, in order to pay your mortgage off with stock dividends, you need to start by not having a mortgage in the first place. Kind of a Catch 22, haha. But that being said, for people that do find themselves in a similar situation, and especially those that don't have access to a lot of the normal institutional retirement paths (401k, pensions, etc), this is a great option to kick off a nest egg that you don't plan to touch for the next 20-30 years.

  • @tryscience
    @tryscience Жыл бұрын

    I believe your logic is sound. Perhaps you can get a write-off for the interest on that mortgage as well. Three pages of securities is obviously well diversified, and by getting a fixed 30-year loan at a very low rate, inflation does become your friend. Because your mortgage payment drops in value with an increased rate of inflation. It's the Delta, the difference that defines the real benefit. So if you have a 4% fixed loan and an 8% inflation rate, you're improving your situation 4% compounding year after year assuming the rates stay the same.

  • @bencozzens5354
    @bencozzens5354 Жыл бұрын

    Can we talk about inflation for a second? When you say it “hit”-I agree-but I’d like to respectfully clarify for everyone reading this: When inflation hits or “is really bad right now”, or something similar it makes it sound as if inflation is a random act of nature…something out of our control…something that will pass eventually. This is not the case!!! Inflation is expansion of the money supply-who causes this?-the federal reserve-they print money and thus you have inflation.

  • @SystemsPlanet
    @SystemsPlanet Жыл бұрын

    My 401k is up 20% buying and selling a handful of stocks based off of nothing but their graph.

  • @tryscience
    @tryscience Жыл бұрын

    I am not qualified to give investment advice. But if I was in a similar situation with a variable income, I might evaluate near the end of the year what my taxable income is expected to be, and sell off some of the poor performing securities to use those losses to offset some of the actual year's income.

  • @derekmcdaniel6029
    @derekmcdaniel6029 Жыл бұрын

    higher interest rates create more inflation. Interest rates didn't "go up". The fed raised rates. so we just pay out more interest on the national debt because the fed wrongfully believes that reduces inflation.

  • @hansbuechi3411
    @hansbuechi3411 Жыл бұрын

    Looks like fun, I have seen worse hobbies. Do you rebalance a lot or ride the market ups and downs more on the value side ?

  • @DennisMarwood
    @DennisMarwood

    Have you jumped on the spaxx bandwagon for part of your investment or still 100% dividend stocks?

  • @kokobokobg
    @kokobokobg Жыл бұрын

    your portfolio is bad...sorry...I wish you luck

  • @refinedhayseedappalachian9777
    @refinedhayseedappalachian9777 Жыл бұрын

    Complete... Non guy ... Iin subject , no context. If your listening tihis guy... Lmao