Want to make $1000 a week trading.....I'm going to try!!! Message Board

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Strategies & Market Trends : Want to make $1000 a week trading.....I'm going to try!!!

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To: Marlin C. Harmon who wrote (505)	1/25/1998 11:29:00 PM
From: TraderGreg	Read Replies (1) of 1100

I will repeat this but one more time. When the question is whether to prepay a mortgage or invest in a cd, and liquidity is NOT an issue, the choice is made by picking the one with the higher net after tax interest rate. Mortgage principal is dead money because it can't be accessed but it still reduces interest paid, so it is working for you . The tax issues are irrelevant unless the investment alternative is tax free. The primary problem with the mortgage prepayment is that the equity can only be recovered when you sell or refinance. But if maximizing interest earned/minimizing interest paid is the sole criteria then I can state absolutely that there is no way a 5 % CD can beat the prepayment of an 8 % mortgage. No way, no how. It is absolutely axiomatic. BTW, if my logic above is wrong then it would seem people could go out and borrow money at 8 % and then place the funds in a 5 % CD and come out ahead. Just think about it. TG

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