The 30-Year Mortgage Is an Intrinsically Toxic Product (2018)

Re:The 30-Year Mortgage Is an Intrinsically Toxic Product (2... by cowl on Saturday July 22, 2023 @05:15AM (#36824701)

I really don't know how S&P500 indexes work in the US but that seems a lot. so let me get it straight you are saying that by investing 60k (and then another 36k over 30years) (and by investing you mean put it in an index and forget it) you get 11 Million out? So a return of 103218.96% even if yuod have invested all of that from the start and not over the years? That is surely something wrong in that math or you just happened to be lucky with some ballooning stock.

The S&P average return rate over 30 years is 7.5%. Assuming you invest all 100k from the start you would have 800k after 30years and that's assuming having a consistent index over 30 years something that is less guaranteed than the Property market.

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Re:The 30-Year Mortgage Is an Intrinsically Toxic Product (2... by BiteCode_dev on Saturday July 22, 2023 @05:27AM (#36824766)

You are right, the calculator I used included buying SPX with apple in it on the cheap very early, so the results are skewd. Plus DCA often produce better return the long run.

You will usually not be as lucky.

$800k is still likely more than the house, with less worry, less locking, and less work though.

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