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$100,000 invested tomorrow goes where?

  • Buy gold bricks and bury it

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Discussion Starter #1 (Edited)
When people look at all the craziness in the world, do we think the market will do ok over the next couple years, or not?

I.e if you had 100,000 tomorrow, would you pay off your mortgage, or invest in the market, or split it? Conventional wisdom say to invest it as the market outreturns the low mortgage rate of 2-3% that is being seen today. However, with all the chaos going on, is now the time to err on the side of caution?

Assume balanced index ETFs. Time range is 20 years. No requirement to access the money. 350K owing on the mortgage. Index fund investor last 10 years or so, pretty content with the returns there.
 

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If you can pay OFF the mortgage completely with the $100k, I'd definitely recommend that. It's a good financial decision but also has a great emotional payoff as well. Your cashflow would increase too, which can then be used for investing more.

If you can't pay it all off with the $100k I would still lean towards the mortgage, but splitting it 50/50 isn't a bad thing either to let you get into the long term upside of the markets.
 

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Personally I made more than 150k on the markets on Friday. From a old investment of about $5000. Whereas tomorrow I’ll pay down several grand of mortgages using OPM. Both systems seem to work fine in my case, but neither was done with my own money.
 

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I have a long term view of investing in the market, the volatility over 2 years is nothing to be concerned about.
 

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I would do a Smith maneuver: pay off the mortgage (or part of it), then re-borrow the money to invest in equities, making the interest tax-deductible.
 

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Anyone who says they know what the markets are going to do next is kidding you or kidding themselves. No one knows and your guess is as good as anybody's. All I can tell you is, they have been around a long time and will probably be around the rest of our lives although the way things are going even that is not guaranteed.
I am a timid investor, I like to make large sums of money and keep a tight stop that gets me out of the market at the first sign of trouble. But, I know most of the readers of this board are stone cold gamblers with ice water in their veins who can watch their accounts tumble by thousands of dollars and not turn a hair, always confident that they will recoup their losses on the turn of a lucky card.
 

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Generally I’d agree with rusty, however there are times when you have a pretty good idea of what the markets will do. Take, for example, a stock split. There is no rational reason why, but almost every time one is announced, people bid it up, even though there is no reason to and the value of the stock hasn’t actually changed. It’s one of those predictable irrational moments in the stock Market. Apple, for example is up almost $55 in the two days since they announced a 4 for 1 split.
 
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