INTEREST on a mortgage = Rent paid to banker instead of a landlord. Your house is not an investment! If even considered one, it is highly unlikely to be your best investment since the average return on your personal residence is about 1.1% per year average.
Oh yes, you watched prices sky-rocket from 2001-2005 but that period is over and don't forget the total cost of your investment. Interest costs to borrow the money (which are always higher than another cost), that's right, inflation; real estate taxes; commissions to buy and sell; maintenance costs and closing costs are just a few that all must be subtracted to determine your "real-inflation-adjusted" return rate. When you do, the answer over the past 25-30 years averages to 1.1%. Stocks average about 6% for a real-return (inflation-adjusted), bonds about 1.5% and, of-course, cash rarely keeps up with inflation.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.