Reply to Why not pay down the mortgage?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]A friend of mine had his parents die and he inhereited about 100k.  He owed 200k on his home.  I told him to put it in principal but he said it’s a better deal to invest.  He put some into CD’s and some in the stock market.  7 years later he’s down to 15k because he spent it on a new car, several nice vacations, and gave a bunch to his kid Who got into credit card debt.

Paying off your house is better than keeping your money in investments.[/quote]

Your friend didn't keep money in investments, he invested it for a period and then spent it.[/quote]

Right, that’s exactly what I’m getting at.  Many people are not able to invest.  “Money is burning a hole in his pocket” is a phrase for a reason.  I think people here think everyone is just like them but in truth a large part of the population doesn’t have the willpower.[/quote]

+1.  They don’t.  Which is why most families get ahead by purchasing a home.  So many renters claim it’s better to buy but very few of them are not buying because they will actually invest the difference.  Most simply don’t have a downpayment saved up and their rent is akin to a mortgage payment in relation to their income.  [/quote]

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