Quote:
Originally Posted by Barbecue
I shouldnt have called it the "banking industry" but rather the Financial Services industry. Even though you dont work for a bank and get nothing out of a paid mortgage, the motivation is to obtain $150k in investments now instead of the significantly less $1k per month.
But what's to say they will get a 7.2% return and double up in a decade? That's just a predicion. Heck, they could very well lose 7.2% and end up with nothing and still continue to pay 3% on a mortgage. If there was any gaurentee the OP can be reassured, it would be a paid off mortgage and end up with zero debt
I have nothing against Financial advisors or planners, it's just this particular advice they collectively seem to agree on that makes no sense to the OP
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As far as what the return will be over the next decade, who knows? Who knows what the value of that house will be? Its all something of a guess and prediction, but I would definitely take my chances with a properly built portfolio over a decade against a single house in a single city over a single decade.