Can you reliably make > 22% rate of return on your investments, year after year?
I doubt it. One or two bad years can really trash the long-term statistics. Early 2020 was a buying opportunity. For me. For some people, it was a disaster.
Credit card debt is evil. IMO.
Car loans are almost as evil. IMO.
Mortgages are tolerable. IMO.
Leveraged investments are gambling. IMO.
Famous financial advisors who don’t even know you are to be taken with a grain of salt.
You know your situation, and how much financial risk you’re able to take.
YMMV.
Agreed on all points.
Some salient responses:
-I have enough in savings to pay off all high-interest debt should the market stall. I.e. investment returns are less than the interest on my debt.
-I buy used, high-mileage cars and keep going (lower insurance, parts cost, etc.).
-I have a superb mortgage refinance rate. It will be the last debt I pay off.
-Yes, leveraged debts are a huge gamble. The only thing that gives me confidence is the gov’s inability to cut spending -meaning the Treasury will have to issue more debt to cover it, thereby further eroding dollar value (inflation). Having majority investments in assets and favoring that over debt ensures my wealth appreciates faster than debt -which gets reduced with inflation.
I don’t listen to advisors much. Maybe Charlie Munger. I really like his take on financing. It’s pretty close to mine. He was a great man. Lucky, shrewd and pragmatic. A good fiduciary.
I’m just following the advice of: when you find a good investment plow into it and ride it till it fades.