Target-date funds are a collection of various funds and asset allocation mix for an individual portfolio. They are extremely popular among investors, especially for planning their retirements. The date in the target-date funds implies to the retirement date of the investor or a date where he declines making contribution to the funds. It does not […]
The dilemma between investing and paying off mortgage is basically a debate between whether a person is to pay off the entire mortgage in a single go, or rather invest in some other source in the coming years and keep on paying the installments till the term of the mortgage is finished. Choosing the appropriate investment channel is no doubt a difficult task, and though real estate is suggested as an option, in some of the best investments for 2011, a mortgage loan as a liability is not a very pleasing thing on a person’s mind. As the economic recession is coming to an end, and several people are finding themselves in a better financial position and, pros and cons of paying off mortgage, are being considered rather seriously. Keeping on paying installments with interest and invest in some or the investment channel or either ways paying off the entire loan amount plus the settlement charge, both have advantages and disadvantages of their own. Here’s an elaboration on the two options.
Understanding the Basics
In order to make the decision properly, you will need to take a pencil and a plain piece of paper, and sit and calculate a few things, even before you consider paying off mortgage vs. investing.
The first three words of the investing discipline are, think, calculate and conclude. All in rationality of course and not in mere speculation, a thought should be based on figures. There are countless investment strategies, classifications and theories propounded by God knows how many people. However, let me tell you that not one of them is completely foolproof. You own logic and the strategies which you create on your own, are the ones that work the best and also help you to get the best investments. The key to make money through investing, through the stock markets for instance is to pour in your own logic into the a, b, c’s of investing, which are of course: think, calculate and conclude. The following are some of the commonly accepted and used strategies.
Now throughout the article we shall be focusing entirely on strategies. Your vehicle can be potentially any investment channel. Some pointers include, mutual funds, shares or stocks, equity and traded instruments such as trade-able bonds and debentures, life insurance, Systemic Investment Plan, Collective Investment Schemes, gold, silver, derivatives and even debt instruments. Potentially, anything and everything (legal) under the Sun, not necessarily on this earth.
Performance-based Investment Strategies
But, it’s isn’t too difficult to make your own resume. Here are some tips, followed by a sample resume which you can refer to, so that you are in a position to draft your own resume.
The buying procedure for any property, be it residential or commercial, is the same. You make a checklist of the various aspects like budget, neighborhood, insurance, begin your search, decide on a property, inquire about the price, see if it fits in your budget, arrange the loan and mortgage, make a counter offer, and finally, when everything is acceptable, buy the property. Once you decide to buy the property, the settlement process begins. The procedure is given in detail below.
The closing comes last in the home-buying process, and is the most important part of a real estate deal. It begins once the purchase offer, or counter offer, is accepted by the seller of the property. Any last-minute changes regarding the property are made, and the final offers are accepted. A number of documents like the contract, the proof of title, mortgage and insurance, reports from the home inspector, are all required for this process. You can also involve an attorney for the same. The step by step closing process is explained below.