Presume this is the wisdom of age.
A young person however has to have a different view (as you obviously did
Tony when you took out your mortgage!)
That view has to be based on a different risk reward curve.
Ie start with not much & borrow some more to get started.
It always amuses me when people say that borrowing money to invest in the
sharemarket is akin to sleeping with the devil!
Yet many of these same people are happy to have a reasonably large
mortgage on their house!
Why do they think that investing in shares (which produce an income via
dividends) and have the potential for capital growth is so bad on
borrowed money?
What do you mean Tony - they will end up not being able to pay it back.
:(:(
Consider those with a large mortgage and
interest rates go up
Market value goes down
The mortgage payer loses their job?
As with all things moderation is a blessing. Borrow in moderation and
count your blessings.
Agree 100% Tony. Very sound advice.
Regards
Brian
At 19:02 27-09-00 +1200, you wrote:
Philip,
I got rid of every scrap of loan, mortgage etc 25 years ago, I will not
borrow $$. If you place money in the market that is not your own, it is
my firm opinion that unless you have great good fortune or are possessed
of well above average market skills you will sooner or later join the
ranks of those who suddenly found they couldn't pay it back.
See IRG research reports
