Quote:
Originally Posted by tvp2003
The thing is, I suck at investing, so it would have to be in the form of mutual funds, etc. I would like to get educated and look at other forms of investing (i.e. real estate, etc.), but for now I'm just looking at the basics. Plus, I'm not sure I like the idea of locking it into an investment for 25 years...
Plus, if my investment income gets taxed, wouldn't I need to earn like 6.5-7.0 percent?
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1) It depends on your appitite for risk. It's less risky to plough money into servicing your mortgage because there's less variables to deal with. However you're probably leaving money on the table as a 5.1 percent after tax annual return over a 25 year period should be able to be beat by a competant portfolio manager.
2) You're right, in Canada your return on the stock market would have to be compared to your mortgage rate on an after-tax basis
3) If you 'suck' at investing get someone else to do it for you. A Financial Advisor can do this work for you with your situation and tolerance for risk in mind. Since they can actively manage your portfolio there's no need to lock in funds for 25 years. There even is a few CP FA's who'd probably love to offer their expertise.