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JLP’s Weekly Roundup (Week of July 2, 2007)

By JLP | July 5, 2007

Here’s a few interesting posts from the past week from the MoneyBlogNetwork and beyond.

Borrowing One’s Way to Prosperity Doesn’t Work – This is about the Wall Street Journal article I profiled several weeks ago.

Is It Better to Rent and Invest Rather Than Buy a House? – I have never looked at the question quite like this. Rather, I have always looked at it from the point of view that people ALREADY have the home and now they are choosing between paying off the mortgage quickly or investing the difference. I have always felt (and probably ALWAYS will) that if your mortgage rate is low enough, it makes perfect sense to take any extra that you would apply to your mortgage and invest it rather than paying down the mortgage.

8 Random Things About Nickel

Your Advice to Your Younger Self – Mine to me: Don’t charge all that crap! Save and invest your money instead and you could EASILY be a millionaire by the time you are 30! (It’s too bad it doesn’t work like this!)

Jim looks at the old Wall Street strategy that goes like this: Sell in May and go Away.

Tricia asks: Should you share your debt situation with your family? – Probably not unless it is really bad.

BluntMoney with 4 Good Reasons NOT to Raid Your 401(k). – It’s crazy to me that people would even consider raiding their 401(k).

Here’s a Money-Saving Guide to Theme Parks. – I HATE the way theme parks screw their visitors.

A follow-up Q & A with the authors of “On My Own Two Feet.”

Jonathan has found 14 Free Brochures to Help People Understand Mortgages.

Topics: Weekly Roundup | 5 Comments »


5 Responses to “JLP’s Weekly Roundup (Week of July 2, 2007)”

  1. Tricia Says:
    July 6th, 2007 at 7:24 am

    Thank you for the mention :)

  2. frugal duchess Says:
    July 6th, 2007 at 7:37 am

    Hey JLP:

    Thanks so much for the mention. I enjoy your roundups.
    Take care!
    Sharon

  3. Kate Says:
    July 6th, 2007 at 7:11 pm

    >>I have never looked at the question quite like this. Rather, I have always looked at it from the point of view that people ALREADY have the home and now they are choosing between paying off the mortgage quickly or investing the difference.

    Living in Los Angeles, I constantly have to remember the culture difference between big cities like LA, NY, SF and the rest of the country…I rented until I was over 40 — and many, many people in big cities do the same thing because of the cost to buy a home…It always blows my mind when I listen to the Dave Ramsey show and I hear people who are 24 years old and make $30,000 a year, BUT THEY OWN A HOME! HUH??? Then I remember — the whole U.S. ain’t like LA…(or NY or SF or other big cities)

    So no, not everybody “ALREADY has the home now,” as you say. I was making the choice between renting longer and jumping in — and I made the right choice :) though that first year of paying for remodels and property taxes, I didn’t think so…

    So it’s a very valid question for a lot of people….

    As for paying off the mortgage — I’m on the fence. It seems to make more sense if your home is a real “keeper,” not something you intend to keep for five years or less…

  4. sam Says:
    July 9th, 2007 at 2:46 pm

    Thanks for the pointer to the “Borrowing One’s Way to Prosperity Doesn’t Work” article.

  5. PRGal Says:
    July 11th, 2007 at 12:28 am

    I have a question for all you credit card wizbangs out there …

    Recently, my husband and I received a very large sum of money and wish to pay off our two credit cards totaling $20K. The remaining funds will be carefully invested.

    While we do have a 2 year old mortgage of $240K, we have no other debt. We own both of our cars, our student loans were paid off several years ago, and we have both been very aggressive with our retirement planning as well.

    Our Chase card has a 3.99% rate until the balance of 11K is paid off, and our Citi card has a 8.99% rate on the 9K balance. To date, we’ve been paying $300-400 over the minimum every month on each card, but now, due to this recent blessing, wish to wipe it out in one big swoop.

    Is there an optimal time in the cycle to pay off these balances in full, and if so, will doing this have any effect on our high FICOs? On one site, I read that you should pay off a balance in full over a period of a few months rather than in one lump sum?

    Thanks for all of your great advice. We visit regularly.

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