On Mon, 19 Sep 2005 11:20:39 -0600, "Shane Hathaway" <[EMAIL PROTECTED]> said: > Grant Robinson wrote: > > The mortgage calculator I was using puts that loan at $1073 a month P&I, > > but for the sake of argument, let's just assume that works out to be > > $1000 a month. Now, lets assume you take that $500 a month pre-payment, > > and invest it instead. Let's assume a modest growth rate of 10%, over > > the life of the loan (which now is ~15 years). At the end of 15 years, > > if you invest $500 a month earning 10% a year, your investment will be > > worth ~$210,000.00 > > Annual growth of 10% is a big assumption. How do you do that?
There's a growing consensus that index funds are the way to go for non-professionals. Mutual funds offer too many ways to get screwed. Warren Buffet famously said (paraphrased): "Making 10% annually is surprisingly easy. Making more than 10% is surprisingly difficult." -Jonathan /* PLUG: http://plug.org, #utah on irc.freenode.net Unsubscribe: http://plug.org/mailman/options/plug Don't fear the penguin. */
