{"id":1099,"date":"2007-03-02T22:04:32","date_gmt":"2007-03-03T05:04:32","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=1099"},"modified":"2007-04-20T16:06:44","modified_gmt":"2007-04-20T23:06:44","slug":"whats-the-biggest-myth-when-it-comes-to-investing-for-your-retirement","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1099\/whats-the-biggest-myth-when-it-comes-to-investing-for-your-retirement\/","title":{"rendered":"What’s The Biggest Myth When It Comes To Investing For Your Retirement?"},"content":{"rendered":"

Though I’ve written posts on this subject before<\/a>, sometimes my zeal to spread the word is renewed by contrary opinions. Of course, when it comes to how folks feel about this subject, you find that very little real analysis was used. I think the problem at times is exactly what analysis is done. Most folks will say putting their money into the bank for a 2-3% return is inferior to paying down their loan because if the interest rate is say, 6%, then that’s what their money is earning. True enough. But that’s the wrong analysis to say the least.<\/em><\/p>\n

Since it will take literally hundreds of thousands of dollars to pay off that very loan, why not take all that money and grow it at 3-10 times that rate? How you look at this question could very well determine whether you have a great retirement or live out a self-imposed life sentence.<\/p>\n

\"Love\"Small<\/p>\n

My own grandpa passed away 15 years ago. He was a well known artist, one of those rare breeds who made a decent living while still alive to enjoy it. His paintings still sell for $5-30K apiece.<\/a> He painted until his health went down hill. He was in his 80’s. It’s a good thing because he and Grandma had their monthly Social Security check plus money from sold paintings. They worked hard to pay off their home loan, which was under $20K upon his death. Yet they would have been behind the 8-ball if he hadn’t been able to continue painting as long as he did. They were inches from having their Depression-based dream of a free and clear home.<\/p>\n

Grandma couldn’t afford to live there when Grandpa died. (Though she still would have moved due to her age & heath.) She had to rent out the house to supplement her income, while moving into one side of a duplex next to one of her kids. She was now renting, while owning her home which was just about debt free.<\/p>\n

And she and Grandpa did this on purpose. <\/strong><\/p>\n

They lived a frugal life. Their only travel was to destinations Grandpa painted, or Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Though I’ve written posts on this subject before, sometimes my zeal to spread the word is renewed by contrary opinions. Of course, when it comes to how folks feel about this subject, you find that very little real analysis was used. I think the problem at times is exactly what analysis is done. Most folks […]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,5],"tags":[],"class_list":{"0":"post-1099","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-investment","7":"category-real-estate","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2150,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2150\/mortgage-grader-revolutionary-or-just-one-more-marketing-widget\/","url_meta":{"origin":1099,"position":0},"title":"Mortgage Grader: Revolutionary or Just One More Marketing Widget?","author":"Brian Brady","date":"November 1, 2007","format":false,"excerpt":"Mortgage Grader is a consumer-operated, automated underwriting system. Jeff Lazerson, its founder, has been working on this idea for 3-4 years. It was released this summer. Consumers enter information and are issued an approval. The mortgage grading engine mashes up various automated underwriting systems (FNMA Desktop Originator, proprietary sub-prime engines,\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1376,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1376\/real-estate-investing-for-retirement-the-human-factor\/","url_meta":{"origin":1099,"position":1},"title":"Real Estate Investing For Retirement — The Human Factor","author":"Jeff Brown","date":"May 2, 2007","format":false,"excerpt":"In the real estate investment side of the biz, everyone wants to talk endlessly about where to invest, how to invest, the best way to analyze the various investment factors, what needs analysis, and the rest. However, the most common factor left out of the process is the human factor.\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2831,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2831\/the-real-estate-bailout-act-of-2008\/","url_meta":{"origin":1099,"position":2},"title":"The Real Estate Bailout Act of 2008","author":"Brian Brady","date":"March 24, 2008","format":false,"excerpt":"When successful financiers achieve a certain level of success, they up the ante and practice social engineering. Robert Rubin, Jon Corzine, and Hank Paulson\u00a0 advanced to government service after piling up the pesos at Goldman Sachs (in financial circles, we say those two words with hushed reverence). After decades of\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":18716,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18716\/why-wont-people-move\/","url_meta":{"origin":1099,"position":3},"title":"Why won’t people move?","author":"Brian Brady","date":"June 8, 2022","format":false,"excerpt":"The housing market is \"stuck\". Higher mortgage rates and the fear of higher property taxes cause Boomers and Millennials to \"hunker down\" rather than move to new homes. Reverse mortgages might offer a solution to this problem. Today,\u00a0 2 out of 3 Baby Boomers are rejecting retirement communities and \"aging\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3203,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3203\/who-should-use-eiuls-401ks-arent-cutting-it-for-most\/","url_meta":{"origin":1099,"position":4},"title":"Who Should Use EIUL’s — 401(k)’s Aren’t Cutting It For Most","author":"Jeff Brown","date":"June 3, 2008","format":false,"excerpt":"Equity Indexed Universal Life is, when simplified, investment grade insurance. It's a tool, a vehicle used by folks to create retirement income. I've written of this before, much to the chagrin of Mr. Swann. I've since put many clients into them using industry experts. Why? 'Cuz it's the right thing\u2026","rel":"","context":"In "Enduring Interest"","block_context":{"text":"Enduring Interest","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/enduring-interest\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7628,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7628\/dont-discount-points-as-a-strategy-to-lower-mortgage-costs\/","url_meta":{"origin":1099,"position":5},"title":"Don’t Discount Points As A Strategy To Lower Mortgage Costs","author":"Brian Brady","date":"March 31, 2009","format":false,"excerpt":"Discount fees (sometimes called \"points\") are considered pre-paid interest.\u00a0 Points are generally tax-deductible and are used to lower a buyer's mortgage rate.\u00a0 Most real estate agents have been taught that \"points\" are \"padded profit\" to a lender or loan originator and should be avoided at all costs.\u00a0 Jeff Belonger debunked\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1099","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=1099"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1099\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=1099"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=1099"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=1099"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}