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Credit Cards (in the US)

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Hoopz:

--- Quote from: javeryh on March 23, 2011, 10:15:26 am ---Me or Fordman?  I'm 36.  Plenty of time before retirement. 

--- End quote ---
I was talking about Fordman.

Vigo:
Go a friend who is a senior financial advisor. I've heard enough horror stories about rookie advisors dunking large sums of peoples savings because they recommended heavily investing in junk shares from obscure Russian companies or whatnot to their clients.  I think anytime you invest a substantial amount of your savings you need to pay attention and be careful of any advice you get, because even a financial advisor can screw up your portfolio.

Not saying it's dumb to invest, and I am definitely not saying there is a guarantee you will ever get your home investment back either (though your home is insured, at least). But market investing takes a bit of time and care, making that additional payment on your mortgage is all of 30 seconds and can often yield the same ROI.

Either way works, YMMV :dunno

HaRuMaN:
As far as debt goes, we have a mortgage, my wife's undergrad student loan (which is like $20K @ 1.x % APR), and under $1K on our credit cards.  No car loans, no store credit cards, etc.  My wife is getting her Masters now, and we've been paying that ourselves (no loans).

We use credit cards to our advantage, using only ones that give us cash back, etc.  Generally we pay them off each month, unless we have a promo 0% APR, in which case we leave the money in an interest bearing savings until just before the 0% APR runs out on the credit card, then we pay off in full.

Hoopz:

--- Quote from: HarumaN on March 23, 2011, 11:14:01 am ---As far as debt goes, we have a mortgage, my wife's undergrad student loan (which is like $20K @ 1.x % APR), and under $1K on our credit cards.  No car loans, no store credit cards, etc.  My wife is getting her Masters now, and we've been paying that ourselves (no loans).

We use credit cards to our advantage, using only ones that give us cash back, etc.  Generally we pay them off each month, unless we have a promo 0% APR, in which case we leave the money in an interest bearing savings until just before the 0% APR runs out on the credit card, then we pay off in full.


--- End quote ---
All sound cash management techniques. 

ChadTower:

FWIW, I'm closer to Fordman's strategy than the credit card folks.  I haven't had a credit card in years.  My only debt is my truck and my house.  Wife's car has no lien.  I pay cash for everything and if I can't it doesn't get bought.  I have a Mastercard ATM card for online transactions.  Sometimes I consider opening up a $750 limit credit card to make it easier to rent cars and make online reservations.  I own a token amount of stock from a former employer and contribute the % of salary to 401k that gets me the maximum employer match (immediate 100% return).

I'm not accelerating my mortgage, though.  I'm in a 15 year with a very low rate so that's quick enough for me.  Any excess cash I get goes into a capital fund that will eventually be the down payment on investment real estate.  My goal is enough passive rental income each month to make two sets of student loan payments - my two elementary school age kids.  

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