Dow - 26,000 - "Edit Next Stop 27,000"

[ConstitutionCowboy]

I agree Woody everything I have is paid for free and clear.
No credit card debt no house payment no car payment only utilities and phone and internet.
Invest in yourself . I assume that's what that means.

That, and more. We started businesses with our own money. Bought run down houses, fixed them up while we lived and worked in them, sold them and moved on to the next one. We did have mortgages, but they got smaller and smaller as we moved up and now we are in a new house mortgage free. Sweat equity paid off.

Woody

 

[CHenry]

That, and more. We started businesses with our own money. Bought run down houses, fixed them up while we lived and worked in them, sold them and moved on to the next one. We did have mortgages, but they got smaller and smaller as we moved up and now we are in a new house mortgage free. Sweat equity paid off.

Woody

will that give you a 12% annul return rate? Having a house paid off is awesome (I'm in that boat) but not having a nest egg going into retirement, well good luck with that.

 

[swampratt]

I have my nest egg It is still growing and it is rental properties that are also paid off. of course I do have an IRA.
Kind of had to roll my 401k over when I quit my last job many years ago.
Not only are the homes paid off they give me monthly income too boot so a win win.

Yes and all of them were fixer uppers to a point.
Never bought a new one.
But that is not a terribly bad idea. If you can get a new one and rent it out for what it cost you or a bit more you will have a decent nest egg when it is paid off

 

[CHenry]

Real estate is a great investment but it will never do a steady 12% compounded annually. My IRA does however.

 

[swampratt]

You are right.
In 14 years for 77,500 investment in a house I only gain in profit $176,800. But add the 77,500 to that. for 254,300

Would be 366,533 had that same 77,500 been compounded annually at 12 percent.
Yea I took out for taxes ...OH crap I did not take out for insurance.. Looks Like I am in the hole again!

Freaking insurance costs are stupid.

 

[CHenry]

You are right.
In 14 years for 77,500 investment in a house I only gain in profit $176,800. But add the 77,500 to that. for 254,300

Would be 366,533 had that same 77,500 been compounded annually at 12 percent.
Yea I took out for taxes ...OH crap I did not take out for insurance.. Looks Like I am in the hole again!

Freaking insurance costs are stupid.

Your saying in 14 years, a $77,500 property went to $254,000? Hmmm...I'm thinking your either wrong mathematically or really lucky!

 

[swampratt]

No that is an investment property a Rental..you must add in the rent you get monthly and subtract the taxes you pay etc.
profited 176,800 and that included the appreciation of the property, include the purchase price and you have it at 254,000.

Yea would be sweet if your primary dwelling went up that high in 14 years.

 

[SlugSlinger]

You are right.
In 14 years for 77,500 investment in a house I only gain in profit $176,800. But add the 77,500 to that. for 254,300

Would be 366,533 had that same 77,500 been compounded annually at 12 percent.
Yea I took out for taxes ...OH crap I did not take out for insurance.. Looks Like I am in the hole again!

Freaking insurance costs are stupid.

77,500 at 12% for 14 years is 378,751. However, the next 6 years it will almost double to $ 748k earning 12% at year 20.

If this was in a Roth, there would be no tax when you need cash.

And this guy is brilliant!

The most powerful force in the universe is.... compound interest.
Or so I've been told. lol

 

[CHenry]

77,500 at 12% for 14 years is 378,751. However, the next 6 years it will almost double to $ 748k earning 12% at year 20.

If this was in a Roth, there would be no tax when you need cash.

Thats what I was trying to get at...

 

[swampratt]

Yep once the numbers get up there it really pours on the steam.