What the wealthy think?
I've read quite a few threads and posts about buying silver, via credit cards and using other debt. I've even had people mention how they believed that it would be a bad mistake to pay off one's mortgage early. They believe that interest rates are so low, that it is "CHEAP MONEY". Well, I've always disagreed with not paying off debt. Unless you can "Guarantee" an investment that will pay back a higher rate of return than your debt, it "ALWAYS" makes sense to pay off all your debt whenever possible. And with today's investments, including stocks, bonds, 401k/mutual funds, and even gold/silver, there is NO GUARANTEE that you can make MORE than the 4-6+% that most people are paying on a mortgage.
I bring this up, because The Spectrum Group, which conducted a survey of wealthy and affluent investors, recently asked “What do you wish you had done differently in the crisis?” (2008-2009) The rich answered:
1. Save More
2. Do more of their own research
3. Don’t take out debt
According to the new survey, those making $750,000 or more have the highest planned retirement ages. Since the financial crisis began, the wealthy have become the nation’s top cash hoarders,
Anyway; I'm definitely big into buying silver and gold. I've never stated any differently. But I've also said that before a person should be buying "Large Quantities" of silver or gold, that they need to get rid of their debt. There's nothing wrong with buying a couple/few hundred dollars worth of silver each month if you still have debt. Including a mortgage. But if you're buying silver for investment purposes, the greatest return you can get on your investment currently, is to pay off debt. INCLUDING MORTGAGES. People who say 3-5% mortgages is "Cheap Money" and should NOT be paid off early, have no idea what they are talking about. They read some books back in the 80's and they believe it applies today. There was a time when you could get 7-12% interest on savings, CD's, etc... That's great when your mortgage is 6-8%. But those returns no longer exist.
Definitely buy silver. But until you are totally debt free, I wouldn't be buying "Thousands" of dollars worth per month. Basically, not as much as your mortgage payment is. Now; if you believe in the Apocalypse, and you are a stacker because you believe the world is going to collapse, then it doesn't matter. You should buy all the silver you can. But if you think this way, I recommend not buying the silver until you have a mega stock of food, water, guns, and ammo. In a total break down, silver and gold are useless. People can't eat it; it can't keep you warm; or give you shelter. But those who only believe in an economic melt down, should definitely buy silver and gold. I just think they should wait until they are debt free, including their mortgage, before they start spending "Thousands" of dollars each month.
So, in a nutshell; I recommend if you are a NORMAL investor, homeowner, etc... If you are buying silver with "Leftover" money each payday, that you buy HALF as much, and use the other half of the money to pay down on your debt..... Like a mortgage or car loan. If you have much HIGHER DEBT; like credit cards and other 10-20% interest rate revolving accounts/loans, then I recommend not buying ANY silver or gold until those debts are totally eliminated. Rich people didn't get rich by accident. And when 35% of the rich are "Savers", there's something to be learned. Especially when they even don't recommend taking on debt.
But I've also always believed that if it's "Your Money", you are free to do anything you want with it. If you believe in not paying off your house, and refinancing it out for another 30 years, then you have every right to be an idiot and do that. It's your money, do what you want to with it. CYA:SE
I bring this up, because The Spectrum Group, which conducted a survey of wealthy and affluent investors, recently asked “What do you wish you had done differently in the crisis?” (2008-2009) The rich answered:
1. Save More
2. Do more of their own research
3. Don’t take out debt
According to the new survey, those making $750,000 or more have the highest planned retirement ages. Since the financial crisis began, the wealthy have become the nation’s top cash hoarders,
Anyway; I'm definitely big into buying silver and gold. I've never stated any differently. But I've also said that before a person should be buying "Large Quantities" of silver or gold, that they need to get rid of their debt. There's nothing wrong with buying a couple/few hundred dollars worth of silver each month if you still have debt. Including a mortgage. But if you're buying silver for investment purposes, the greatest return you can get on your investment currently, is to pay off debt. INCLUDING MORTGAGES. People who say 3-5% mortgages is "Cheap Money" and should NOT be paid off early, have no idea what they are talking about. They read some books back in the 80's and they believe it applies today. There was a time when you could get 7-12% interest on savings, CD's, etc... That's great when your mortgage is 6-8%. But those returns no longer exist.
Definitely buy silver. But until you are totally debt free, I wouldn't be buying "Thousands" of dollars worth per month. Basically, not as much as your mortgage payment is. Now; if you believe in the Apocalypse, and you are a stacker because you believe the world is going to collapse, then it doesn't matter. You should buy all the silver you can. But if you think this way, I recommend not buying the silver until you have a mega stock of food, water, guns, and ammo. In a total break down, silver and gold are useless. People can't eat it; it can't keep you warm; or give you shelter. But those who only believe in an economic melt down, should definitely buy silver and gold. I just think they should wait until they are debt free, including their mortgage, before they start spending "Thousands" of dollars each month.
So, in a nutshell; I recommend if you are a NORMAL investor, homeowner, etc... If you are buying silver with "Leftover" money each payday, that you buy HALF as much, and use the other half of the money to pay down on your debt..... Like a mortgage or car loan. If you have much HIGHER DEBT; like credit cards and other 10-20% interest rate revolving accounts/loans, then I recommend not buying ANY silver or gold until those debts are totally eliminated. Rich people didn't get rich by accident. And when 35% of the rich are "Savers", there's something to be learned. Especially when they even don't recommend taking on debt.
But I've also always believed that if it's "Your Money", you are free to do anything you want with it. If you believe in not paying off your house, and refinancing it out for another 30 years, then you have every right to be an idiot and do that. It's your money, do what you want to with it. CYA:SE
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