How to Make 100% or More on Your Money
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No, it & 39; n is not a term or trading strategy. & 39; N You are not obliged & 39; join a cult or a & 39; MLM. And you can do so for only years.
The qualification, c & 39; is that you have a mortgage or home & 39; s & 39; equity loan.
You can reach over 100% return on your money simply by paying d & 39; money on your mortgage every month or as often as you like.
Here how it works: if you have 30-year mortgage at 7% for every $ 100 the amount of your loan you will eventually have to pay as much as $ 209 in interest. So in the 30 years to repay the mortgage, you will repay that $ 100 you borrowed PLUS & 39; you pay up to $ 209 extra if you interest.
So "invest" an extra $ 100 with your first mortgage payment, you will end up Saving & 39; to $ 209.42. & 39; C is a return on investment of 109%! And & 39; is guaranteed.
Plus you just reduce the amount you are in debt and reduces the time that it will take & 39; for you to repay your mortgage. How cold-calling brokers placement can offer a deal like that?
So you might look like invest $ 100 of your mortgage means that & 39; it & 39; is $ 309.42, you & 39; n will not pay in the future. It can even be argued that c & 39; is a return of 209%.
But what if you are several years in your mortgage. Well, even if you have 10 years on your mortgage (mortgage, and the average only lasts about 7 years these days), you can still save $ 139.42 in interest by paying an additional fee of $ 100. Or if you are 20 years in your mortgage, you save $ 69.42 even paying an extra $ 100.
So What do you lose, but your mortgage debt?
So why not make more people?
Probably because the conventional "wisdom", said - that if you can get a better rate with an investment than what you pay on your mortgage, you should invest instead. If you choose to pay 7% on your mortgage and you can earn 11% on the stock market, it seems a no-brainer that you should invest in the stock market.
There are two problems with this philosophy: First, the stock market 11% that figure is widely quoted is an average over the past 30 years. Returns on stock markets have on average on a yearly basis to both higher and lower than the rate of 11%. How do you know that when you invest in one year, with negative returns? Unless you are & 39; in the financial industry, you are probably taking as big a gamble as you would in Las Vegas playing Roulette Wheel.
The other problem is that & 39; inflation and taxes eating away Returning 11%. Taxes can eat up & 39; 2% d & 39; inflation and it may take another 3%, leaving you with only 6%, which is less than your mortgage. And & 39; is actually assuming you get a return of 11% this year. Also remember that in years when the high returns of stocks are exercised are also often accompanied by inflation & 39; above normal rates.
But some people will not be convinced and will insist on & 39; investment in the market Fellow forward to repay their mortgage and that is understandable. We all want to build a sort of retirement nest egg or have a & 39; emergency fund that grows over the dismal rate offered by banks or savings accounts d & 39; money market accounts.
But if your refund Logically mortgage at 7%, how much more sense does pay your debts & 39; interest rates higher. If you have a credit card charging nearly 24%, it is far more logical to pay this off before & 39; s & 39; invest money in the stock market.
Some people will say that & 39; it is always good d & 39; invest even if you have debt. But this is contrary to the goal & 39; d & 39; increase your assets and wealth. For example, let& 39;s say you have $ 1058 on a credit card by 24% and you have an extra $ 100 per month. You decide d & 39; make your minimum payment while investing in the rest of the stock market.
If your fellowship gives you an investment of 12% rate of return, you will have approximately $ 996 at the end of & 39; years ($ 100 - pmt min x 12 months " + D & 39; " interest). But you still have $ 1079 (more than you began with) on your credit card.
Viewed another way, you paid a total of $ 1200. Additionnant the negative balance credit card and & 39; positive investment gives the value that you have a net worth of $-83.
Instead, if you use the full $ 100 to repay your debt, you are free to the debt & 39; end of the year. You will not & 39; n an investment & 39; but in the whole, it will not always be negative. L & 39; next year, you can invest the $ 100 as in the stock market. But if you have had your debt, you can invest only $ 78.50 while making your credit card payment minimum ($ 100 - pmt min: $ 21.50 = $ 78.50).
Now if you take this scenario and play over 5, 10, 15 or even 20 years, you can see how pay your debts off now can save you $ 1000 in interest and help you pay your debts sooner. Once your debts repaid, you can choose & 39; use the extra money & 39; to invest.
Numerically it is best to pay your debts first. But since your stockbroker made his money on your investment what do you think his advice will be?
David Berky is president of Simple Joe, Inc. makers of the eraser debt popular PC software, which helps people create a plan for the rapid reduction of the debt to get themselves out of debt much & 39; l sooner and save $ 1000 in interest payments & 39;. Visit http://www.simplejoe.com & 39; for more information.
Bookmark it:
The qualification, c & 39; is that you have a mortgage or home & 39; s & 39; equity loan.
You can reach over 100% return on your money simply by paying d & 39; money on your mortgage every month or as often as you like.
Here how it works: if you have 30-year mortgage at 7% for every $ 100 the amount of your loan you will eventually have to pay as much as $ 209 in interest. So in the 30 years to repay the mortgage, you will repay that $ 100 you borrowed PLUS & 39; you pay up to $ 209 extra if you interest.
So "invest" an extra $ 100 with your first mortgage payment, you will end up Saving & 39; to $ 209.42. & 39; C is a return on investment of 109%! And & 39; is guaranteed.
Plus you just reduce the amount you are in debt and reduces the time that it will take & 39; for you to repay your mortgage. How cold-calling brokers placement can offer a deal like that?
So you might look like invest $ 100 of your mortgage means that & 39; it & 39; is $ 309.42, you & 39; n will not pay in the future. It can even be argued that c & 39; is a return of 209%.
But what if you are several years in your mortgage. Well, even if you have 10 years on your mortgage (mortgage, and the average only lasts about 7 years these days), you can still save $ 139.42 in interest by paying an additional fee of $ 100. Or if you are 20 years in your mortgage, you save $ 69.42 even paying an extra $ 100.
So What do you lose, but your mortgage debt?
So why not make more people?
Probably because the conventional "wisdom", said - that if you can get a better rate with an investment than what you pay on your mortgage, you should invest instead. If you choose to pay 7% on your mortgage and you can earn 11% on the stock market, it seems a no-brainer that you should invest in the stock market.
There are two problems with this philosophy: First, the stock market 11% that figure is widely quoted is an average over the past 30 years. Returns on stock markets have on average on a yearly basis to both higher and lower than the rate of 11%. How do you know that when you invest in one year, with negative returns? Unless you are & 39; in the financial industry, you are probably taking as big a gamble as you would in Las Vegas playing Roulette Wheel.
The other problem is that & 39; inflation and taxes eating away Returning 11%. Taxes can eat up & 39; 2% d & 39; inflation and it may take another 3%, leaving you with only 6%, which is less than your mortgage. And & 39; is actually assuming you get a return of 11% this year. Also remember that in years when the high returns of stocks are exercised are also often accompanied by inflation & 39; above normal rates.
But some people will not be convinced and will insist on & 39; investment in the market Fellow forward to repay their mortgage and that is understandable. We all want to build a sort of retirement nest egg or have a & 39; emergency fund that grows over the dismal rate offered by banks or savings accounts d & 39; money market accounts.
But if your refund Logically mortgage at 7%, how much more sense does pay your debts & 39; interest rates higher. If you have a credit card charging nearly 24%, it is far more logical to pay this off before & 39; s & 39; invest money in the stock market.
Some people will say that & 39; it is always good d & 39; invest even if you have debt. But this is contrary to the goal & 39; d & 39; increase your assets and wealth. For example, let& 39;s say you have $ 1058 on a credit card by 24% and you have an extra $ 100 per month. You decide d & 39; make your minimum payment while investing in the rest of the stock market.
If your fellowship gives you an investment of 12% rate of return, you will have approximately $ 996 at the end of & 39; years ($ 100 - pmt min x 12 months " + D & 39; " interest). But you still have $ 1079 (more than you began with) on your credit card.
Viewed another way, you paid a total of $ 1200. Additionnant the negative balance credit card and & 39; positive investment gives the value that you have a net worth of $-83.
Instead, if you use the full $ 100 to repay your debt, you are free to the debt & 39; end of the year. You will not & 39; n an investment & 39; but in the whole, it will not always be negative. L & 39; next year, you can invest the $ 100 as in the stock market. But if you have had your debt, you can invest only $ 78.50 while making your credit card payment minimum ($ 100 - pmt min: $ 21.50 = $ 78.50).
Now if you take this scenario and play over 5, 10, 15 or even 20 years, you can see how pay your debts off now can save you $ 1000 in interest and help you pay your debts sooner. Once your debts repaid, you can choose & 39; use the extra money & 39; to invest.
Numerically it is best to pay your debts first. But since your stockbroker made his money on your investment what do you think his advice will be?
David Berky is president of Simple Joe, Inc. makers of the eraser debt popular PC software, which helps people create a plan for the rapid reduction of the debt to get themselves out of debt much & 39; l sooner and save $ 1000 in interest payments & 39;. Visit http://www.simplejoe.com & 39; for more information.
Bookmark it:
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