As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Tuesday, 13 March 2012

Opportunity and Outcome???

Read? Will You Try To Pay Off Your Housing Loan ASAP If You Have One? (11)

Should you be paying off the cheapest housing loan in town and assuming the house is your only residential home and there is no intention to monetise it during your last phase of your life on Hotel Earth?

The more you read from different sources you may become blur instead of becoming clearer.

Opportunity and Outcome

The moment we have fully pay up our only residential home. It is a definite and positive outcome. We have owned the home outright and unencumbered.

When we choose to take the longest loan and use the excess cash to invest. This excess cash just present an opportunity. What looks like great opportunity initially may not actually end up with positive outcome. This is the truth in the market. How many times have we turned our opportunities into disasters? Think back!

1 comment:

  1. HDB loan has a unique feature called Partial Capital Repayment. Top up >$1k toward your principle and there is an interest rebate. Chose between lower monthly payment (same loan period) or same monthly payment but shorter period.

    I can no longer find the site, but somehow the calculation that if I keep doing this during the 1st 1/3 of the loan period, every 1 month's installment top up, I save about 2.x months on the loan period. Took me a while to digest this. But eventually, I paid off in 3.5years.

    Happily now take the now-free cash to invest and aiming for high yield long term returns.

    Huat ah

    ReplyDelete

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