Comments on: Oh c’mon now! http://www.neilshearing.com/2007/01/12/oh-cmon-now/ Neil Shearing's latest up-to-the-minute tips and secrets! Thu, 08 Jan 2009 22:13:34 +0000 http://wordpress.org/?v=2.0.2 by: Neil_Shearing http://www.neilshearing.com/2007/01/12/oh-cmon-now/#comment-138316 Tue, 10 Jun 2008 05:21:08 +0000 http://www.neilshearing.com/2007/01/12/oh-cmon-now/#comment-138316 Ph.D. holders have to be risk takers because they spent so long in higher education they have less years than everyone else to build up their pot of cash. :-) Neil. Ph.D. holders have to be risk takers because they spent so long in higher education they have less years than everyone else to build up their pot of cash. :-)

Neil.

]]> by: Mortgage Interest Only http://www.neilshearing.com/2007/01/12/oh-cmon-now/#comment-138297 Mon, 09 Jun 2008 20:57:09 +0000 http://www.neilshearing.com/2007/01/12/oh-cmon-now/#comment-138297 Neil, damn, wish I'd never found this site, an ex phd student worth half a million. I'm in the same boat, finished my phd, never used it and now I want to be rich! Anyway, I think that your advice is sound. If you get a mortgage, pay it off as soon as you can, that way, you don't have to pay the banks the interest on the loan. Alternatively, if you are good at investing, you can get an interest only mortgage to purchase your property and use the difference between that an a standard mortgage to build up a pot of cash and you could have more at the end of the term than the initial mortgage amount. At the end of the day, it's your attitude to risk, I think that ex PhD students tend to be risk takers! Neil, damn, wish I’d never found this site, an ex phd student worth half a million. I’m in the same boat, finished my phd, never used it and now I want to be rich!

Anyway, I think that your advice is sound. If you get a mortgage, pay it off as soon as you can, that way, you don’t have to pay the banks the interest on the loan. Alternatively, if you are good at investing, you can get an interest only mortgage to purchase your property and use the difference between that an a standard mortgage to build up a pot of cash and you could have more at the end of the term than the initial mortgage amount. At the end of the day, it’s your attitude to risk, I think that ex PhD students tend to be risk takers!

]]> by: Henry http://www.neilshearing.com/2007/01/12/oh-cmon-now/#comment-9120 Fri, 27 Jul 2007 16:27:10 +0000 http://www.neilshearing.com/2007/01/12/oh-cmon-now/#comment-9120 Keep UP good work Keep UP good work

]]> by: Neil_Shearing http://www.neilshearing.com/2007/01/12/oh-cmon-now/#comment-3467 Mon, 15 Jan 2007 13:58:50 +0000 http://www.neilshearing.com/2007/01/12/oh-cmon-now/#comment-3467 Hi Greg, I totally agree with you. I often ask myself if paying off the mortgage is going to get me the best returns. The way I see it, paying off the mortgage is a strong motivational goal, whereas setting a goal of "growing my business by in excess of 5% per annum" really doesn't motivate me much. I guess it's down to each individual, and what motivates them. :-) My mortgage rate will be going up by 0.25% very soon... with further increases expected... so that's additional motivation. :-) Neil. Hi Greg,

I totally agree with you. I often ask myself if paying off the mortgage is going to get me the best returns. The way I see it, paying off the mortgage is a strong motivational goal, whereas setting a goal of “growing my business by in excess of 5% per annum” really doesn’t motivate me much. I guess it’s down to each individual, and what motivates them. :-)

My mortgage rate will be going up by 0.25% very soon… with further increases expected… so that’s additional motivation. :-)

Neil.

]]> by: Greg http://www.neilshearing.com/2007/01/12/oh-cmon-now/#comment-3447 Sun, 14 Jan 2007 19:19:35 +0000 http://www.neilshearing.com/2007/01/12/oh-cmon-now/#comment-3447 Back around 1980 US mortgage interest rates hit the low 20s. My Dad had just put up for sale a house that he had remodeled. Boom. 21 or 22% rates. As you might expect there weren't too many offers. Paying off all debts, including the mortgage, sounds like good advice to me, not necessarily because a 5% debt is so painful, but because of where that interest rate might go if we have a variable rate on our own loans. Otherwise extra cash might be better sent into a business that will return a much greater rate than 5%. Greg Back around 1980 US mortgage interest rates hit the low 20s. My Dad had just put up for sale a house that he had remodeled. Boom. 21 or 22% rates. As you might expect there weren’t too many offers.

Paying off all debts, including the mortgage, sounds like good advice to me, not necessarily because a 5% debt is so painful, but because of where that interest rate might go if we have a variable rate on our own loans.

Otherwise extra cash might be better sent into a business that will return a much greater rate than 5%.

Greg

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