Ideas for those that 'played by the rules' to take advantage of the current situation

[onewhippedpuppy]

Originally Posted by einreb

I could sell equities in this down market and do that now. I dont think thats a good move, do you? maybe you're right... dunno.

For the life of me, I can't figure out why anyone that COULD pay off their house would not. Do the math, I guarantee you're paying more on your mortgage interest than you are saving with that tax write-off. If you have investments but still owe money on your house, you are already effectively borrowing that money to invest.

[911Rob]

I keep forgetting that in the US you can write off your interest on your mortgage; here in Canada we cannot. That would likely get me into trouble? Ha!

I just bought this sweet little development property..... 7.5 "in town" acres ready for a sub-division right next door to an elementary school, fully serviced to the lot lines and in a great neighbourhood. There's a house on the property that I'm renovating to live in until the economy is ready; I call this smart debt.

Really cut into my Ferrari budget though? Oh well, according to Scott they're coming down in price for next summer anyways.

[einreb]

Originally Posted by 911Rob

At one point in my life I was sooooo focused on "no debt" that I just paid everything off.

Exactly. Thats the mode I've been in as of late. I'm trying to fight it because I don't think that its actually the 'best' move, especially in this 'cheap money' environment.

Thats sort of the point of this thread... just get some ideas and feedback (tabs first lucid post in years). Most of the 'personal financial advice' out there is geared towards folks buried in cc debt.

Don't get me wrong, i like the idea of no house note. But for anyone that thinks they 'own their house', just stop paying property taxes and you'll find out who owns it.

[Rot 911]

Take out the borrowing money or equity part and what would be the down side to just purchasing stocks that are paying a good dividend? Obviously if the stock tanks would be the biggest issue.

And as to corporate bonds, where can a person buy into those? Scott Trade type places?

Right now the best I can do on CD's for short term is less than 4% interest.

[einreb]

Originally Posted by Kurt V

And as to corporate bonds, where can a person buy into those? Scott Trade type places?

Not sure about Scott Trade (I assume theyy can). I've done it with both Schwab and T Rowe Price. I am unaware of being able to purchase without an actual broker. Its not nearly as 'liquid' as a stock. For example, I actually looked to sell part of a Goldman Sachs bond last month and there were no buyers. The market was literally that locked up. A few days later, I got nearly par value for it.

You can look information up on http://www.investinginbonds.com/