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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 379.87+0.4%Nov 11 4:00 PM EST

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To: TobagoJack who wrote (41287)10/13/2008 10:09:01 PM
From: Don Earl  Read Replies (1) of 217700
 
Yes, I didn't specify "unleveraged", but that was the unspoken assumption. Did you know that with interest at around 6%, the cost to repay a 30 year loan is two and a half times the sale price?

The two places the average person can get the highest rate of return on their dollar is to first zero out all credit card debt, and second to invest all free flow cash into the equity in their homes. In the first 5 years of a 30 year mortgage, every dollar invested over and above the monthly payment is automatically more than doubled. Even in a bull market, you couldn't begin to touch those kind of returns from any kind of diversified stock portfolio.
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