Comments on: Oops … I just broke The 20% Rule! http://7million7years.com/2008/05/17/oops-i-just-broke-the-20-rule/ How to make 7 million in 7 years ... Thu, 24 May 2012 01:26:57 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: The Golden Faucet- 7million7years http://7million7years.com/2008/05/17/oops-i-just-broke-the-20-rule/comment-page-1/#comment-5022 The Golden Faucet- 7million7years Wed, 14 Apr 2010 15:24:49 +0000 http://7million7years.wordpress.com/?p=137#comment-5022 [...] what if something goes wrong as it did for me when the GFC hit leaving me with too much house, another house I can’t get rid of, and $2.5 million of unavoidable stock losses [AJC: part [...] [...] what if something goes wrong as it did for me when the GFC hit leaving me with too much house, another house I can’t get rid of, and $2.5 million of unavoidable stock losses [AJC: part [...]

]]> By: I’m diversified …- 7million7years http://7million7years.com/2008/05/17/oops-i-just-broke-the-20-rule/comment-page-1/#comment-4978 I’m diversified …- 7million7years Thu, 08 Apr 2010 01:03:49 +0000 http://7million7years.wordpress.com/?p=137#comment-4978 [...] aside from the fact that I’ve over-invested in my Aussie house [AJC: see this post for the problem and how I intend to fix it], you can see why I am not [...] [...] aside from the fact that I’ve over-invested in my Aussie house [AJC: see this post for the problem and how I intend to fix it], you can see why I am not [...]

]]> By: Ooops! She broke the 25% Rule …. « How to Make 7 Million in 7 Years™ http://7million7years.com/2008/05/17/oops-i-just-broke-the-20-rule/comment-page-1/#comment-1065 Ooops! She broke the 25% Rule …. « How to Make 7 Million in 7 Years™ Fri, 29 May 2009 11:47:33 +0000 http://7million7years.wordpress.com/?p=137#comment-1065 [...] house, Investing, millionaire, money, Rich, Saving, Starting Out, wealth I wrote a post some time ago about how I broke (nay, smashed!) the 20% Rule when I bought my latest house – [...] [...] house, Investing, millionaire, money, Rich, Saving, Starting Out, wealth I wrote a post some time ago about how I broke (nay, smashed!) the 20% Rule when I bought my latest house – [...]

]]> By: A new way to look at your home … « How to Make 7 Million in 7 Years™ http://7million7years.com/2008/05/17/oops-i-just-broke-the-20-rule/comment-page-1/#comment-1066 A new way to look at your home … « How to Make 7 Million in 7 Years™ Wed, 04 Feb 2009 08:33:26 +0000 http://7million7years.wordpress.com/?p=137#comment-1066 [...] just a little/lot more than we can actually afford. And, to be totally truthful … I not only succumb to this line of thinking myself, I actually encourage you to do the [...] [...] just a little/lot more than we can actually afford. And, to be totally truthful … I not only succumb to this line of thinking myself, I actually encourage you to do the [...]

]]> By: Different horses for different courses … « How to Make 7 Million in 7 Years™ http://7million7years.com/2008/05/17/oops-i-just-broke-the-20-rule/comment-page-1/#comment-1064 Different horses for different courses … « How to Make 7 Million in 7 Years™ Wed, 20 Aug 2008 19:00:39 +0000 http://7million7years.wordpress.com/?p=137#comment-1064 [...] of your emergency fund strategy and Diane noticed that I had mentioned my own use of a HELOC in an older post about my own home [...] [...] of your emergency fund strategy and Diane noticed that I had mentioned my own use of a HELOC in an older post about my own home [...]

]]> By: AJC http://7million7years.com/2008/05/17/oops-i-just-broke-the-20-rule/comment-page-1/#comment-1058 AJC Mon, 19 May 2008 03:27:15 +0000 http://7million7years.wordpress.com/?p=137#comment-1058 @ Curt - I seriously doubt that your friend DID the same things, though .... if he did, he'd be writing this blog ;) Good on you for doing what YOU think is right! @ Curt – I seriously doubt that your friend DID the same things, though …. if he did, he’d be writing this blog ;) Good on you for doing what YOU think is right!

]]> By: Curt http://7million7years.com/2008/05/17/oops-i-just-broke-the-20-rule/comment-page-1/#comment-1063 Curt Mon, 19 May 2008 02:27:37 +0000 http://7million7years.wordpress.com/?p=137#comment-1063 I good friend of mine told me some of the same things a few years ago, but now he's in foreclosure and possibly bankruptcy. But, to be fair, I'm not putting any extra money into my low interest morgage right now. Their are just too many other good investment opportunities. I good friend of mine told me some of the same things a few years ago, but now he’s in foreclosure and possibly bankruptcy.

But, to be fair, I’m not putting any extra money into my low interest morgage right now. Their are just too many other good investment opportunities.

]]> By: AJC http://7million7years.com/2008/05/17/oops-i-just-broke-the-20-rule/comment-page-1/#comment-1062 AJC Sun, 18 May 2008 17:23:04 +0000 http://7million7years.wordpress.com/?p=137#comment-1062 @ Curt - Thanks for your comment! I see two different issues: 1. Making Money 101 - What to do when you have a house with a mortgage and you 'find' some extra cash? Suze orman and Dave Ramsey recommend ploughing it into your home loan ... I DON'T, here's why: http://7million7years.com/2008/05/13/contrary-to-popular-opinion-paying-off-your-mortgage-is-the-dumbest-move-you-can-make/ 2. Making Money 301 - What to do if you have so much money that you can afford to pay cash for a house and STILL fit within the 20% Rule ( http://7million7years.com/2008/04/11/applying-the-20-rule-part-i-your-house/ )? That's what this article is about ... Making Money 301 principles probably don't apply to people with a Net Worth under $1,000,000. But, that is VERY different to saying that they should pay down their home mortgage instead of investing elsewhere ... they shoudl only do that if they want to STAY with a net Worth under $1 Mill. @ Curt – Thanks for your comment! I see two different issues:

1. Making Money 101 – What to do when you have a house with a mortgage and you ‘find’ some extra cash? Suze orman and Dave Ramsey recommend ploughing it into your home loan … I DON’T, here’s why:

http://7million7years.com/2008/05/13/contrary-to-popular-opinion-paying-off-your-mortgage-is-the-dumbest-move-you-can-make/

2. Making Money 301 – What to do if you have so much money that you can afford to pay cash for a house and STILL fit within the 20% Rule ( http://7million7years.com/2008/04/11/applying-the-20-rule-part-i-your-house/ )? That’s what this article is about … Making Money 301 principles probably don’t apply to people with a Net Worth under $1,000,000.

But, that is VERY different to saying that they should pay down their home mortgage instead of investing elsewhere … they shoudl only do that if they want to STAY with a net Worth under $1 Mill.

]]> By: Curt http://7million7years.com/2008/05/17/oops-i-just-broke-the-20-rule/comment-page-1/#comment-1061 Curt Sun, 18 May 2008 16:08:57 +0000 http://7million7years.wordpress.com/?p=137#comment-1061 Yes, but I’m sure that you realize Dave Ramsey is talking to the majority that buy houses at the national average of $192,000. These people don't have money to pay for their house with cash and then borrow against it. Therefore, I have to agree with Dave, it is better to pay off your house (at least for most). Unless your net worth is oven 1 million, I wouldn't recommend your strategy. Most people have a negative new worth of at least 100k. They don't have any money to help them out if their investment doesn't turn out, and they could end up losing their house or going into bankruptcy - which means the rest of us will have to pay for their mistake. I don't want to pay for other peoples bad investments, and therefore cannot recommend borrowing against your home. Yes, but I’m sure that you realize Dave Ramsey is talking to the majority that buy houses at the national average of $192,000. These people don’t have money to pay for their house with cash and then borrow against it. Therefore, I have to agree with Dave, it is better to pay off your house (at least for most).

Unless your net worth is oven 1 million, I wouldn’t recommend your strategy. Most people have a negative new worth of at least 100k. They don’t have any money to help them out if their investment doesn’t turn out, and they could end up losing their house or going into bankruptcy – which means the rest of us will have to pay for their mistake. I don’t want to pay for other peoples bad investments, and therefore cannot recommend borrowing against your home.

]]> By: AJC http://7million7years.com/2008/05/17/oops-i-just-broke-the-20-rule/comment-page-1/#comment-1060 AJC Sat, 17 May 2008 15:38:48 +0000 http://7million7years.wordpress.com/?p=137#comment-1060 @ Jim - It is not always possible to have returns outweigh borrowing costs in any short-term (say 1 to 5 year) period. That's why we buy low (sell high, or keep) ... lock in long-term when interest rates are low ... and wait. Over the last couple of years I have been selling, not buying ... now the cycle is beginning again. @ Jim – It is not always possible to have returns outweigh borrowing costs in any short-term (say 1 to 5 year) period. That’s why we buy low (sell high, or keep) … lock in long-term when interest rates are low … and wait. Over the last couple of years I have been selling, not buying … now the cycle is beginning again.

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