roguewarrior0 wrote: ↑Mon Jul 26, 2021 6:40 pm
You guys are right, that 700k mortgage wouldn't make a huge dent.
However, this thread has taken me in a new direction. I plan on living off of 240k a year by selling 3%/yr from portfolio during January rebalancing. If instead I never sold and just perpetually took out a loan. The 5% additional growth off of that is pretty astonishing.
Fair point: we don’t have $8M (yet).
However:
a) I am not dealing with banks that much to make my life more complicated. Simplicity rules in our world, unless something adds value,
b) why not take out margin loans on your investment accounts and invest that money?? The market is doing great, company stocks are selling for exactly what the company valuations are supposed to be, and the real estate market never wanes nor health and life scenarios shift where one desires change and flexibility, so why not leverage as much as they’ll give you?
c) most importantly...you used the word “just”
. My humble experiences have repeatedly demonstrated to me that if I am using the word, “just”, I am oversimplifying and about to step in it. Why not sell the rentals and reinvest it all in the market, and have a nice, relaxing weekend (as with OldTimer’s example). Do not forget to add risk into your calculations (beta, Sharpe ratio...way beyond me).
Again, if you’re looking for these higher returns in the market, why not just do margin loans and invest that money?? A little less spread, but maybe you can get a better rate?
What does your wife think?
Please spell out new acronyms. Thank you.