mortgage or stacking, mortgage or stacking?

Discussion in 'Wealth Creation & Management' started by Ag bullet, Sep 23, 2014.

  1. Ag bullet

    Ag bullet Well-Known Member

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    i'm caught between paying off the mortgage and wanting to stack for the future. what sort of balance do you like? some say pay off debt first but that means i won't start stacking for another 25 years!
     
  2. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Stack fiat olivia - then buy PM's or pay off debts when crunch time arrives.

    When does crunch time arrive? Well if you have to ask for guidance on a forum then it is either misguided or too late. ;)
     
  3. House

    House Administrator Staff Member

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    Why not do both? Couple of ounces a week and then the rest on the mortgage. You put $50k into your house you can use the equity in it to buy another property. You put $50k into PM's... Well... Look at the charts ;)
     
  4. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Good point.

    If you've got no PMs buy PMs.

    If you've got some PMs buy PMs and stack fiat.

    If you've got enough PMs stack fiat.

    If you've got enough PMs and enough fiat then its the mortgage.
     
  5. Agnostic

    Agnostic Active Member Silver Stacker

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    Every dollar you pay off the mortgage is earning you a 6% after-tax return with little risk.
     
  6. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Every dollar you pay off your mortgage is one less dollar you have access to if you need it for something else. ;)
     
  7. long88

    long88 Member

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    this is how i would do it if i am 20 again.

    1. mortage, buy your own roof, and paid it off ASAP.
    2. get an IP, create some cash flow so you dont have to depend on your job.
    3. then you start to stack some metal or get some toys.
    4. create more cash flow (property, shares).
    5. use the cash flow generated to stack metal, dont waste it on toys/girls/casino/wife/kids.
    6. go to 4. and repeat.

    the shtf day is unknown, and this can go on forever, as long as all the market participant can benefit from it. so why not make it to your advantages as well.

    i stack because i want my wealth out from the banking system (20%-30% allocation), not because of the SHTF.
     
  8. nonrecourse

    nonrecourse Well-Known Member

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    If I was stating again knowing what I know now; I'd start with a fixed interest property investment loan loan for 5 years. The difference for interest and principle 2% above the going interest and principle rate I would be using to buy gold bullion. After 5 years the first loan would revert to P.& I. if the interest rate had gone down I'd keep paying off at the same rate but continue to buy gold. If the interest rate had gone up I'd pay that rate and also add 2% to continue accumulating gold.

    I'd also buy the second investment property on the basis of the first and every 5 years buy another. During my working life I'd always rent a modest family home until I was ready to retire with at least 6 commercial properties all earning me each a standard wage slave wage.

    Kind Regards
    non recourse
     
  9. Yendor

    Yendor Member

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    Use an offset account, and you can access your cash at a moments notice if the need arises. You can also withdraw the offset when you upsize, to negative gear the first house.
     
  10. mrearthman

    mrearthman New Member

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    You can definitely do both just dollar cost average into silver eg accumulate a 10 oz bar every month or whatever amount or frequency suits.
     
  11. Jislizard

    Jislizard Well-Known Member Silver Stacker

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    Nice advice there.

    Don't buy your own residence, buy an investment property instead. You can rent somewhere cheaper or more convenient for work. Someone else will be paying towards your mortgage and the shortfall can be used as a tax deduction from your main job.

    Put your savings into an offset account to lower the cost of the investment property mortgage and have it available for when you need it, e.g. silver tanks and is cheaper to buy, another house becomes available, you have enough to pay off the loan and don't want to buy another house.

    If you get a Self Managed Superfund you can put all your super into stacking PMs, you might be able to salary sacrifice and get your silver a bit cheaper as well.
     

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