Quote:
Originally Posted by Sagi_AFF
He's asking what the best thing to do is. If we are talking about a 30 year loan I don't think he has to worry about diversified stock portfolio (say an S&P 500 index fund) being down over that period. As long as he takes his extra money which he planned to pay off his loan with and puts it in the fund each month or at regular intervals he'll be better off. In fact the fluctuations will actually better for him long term.
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obviously you missed the part where he said he is looking to sell the house in 7 years. Which in reality will likely be less than that as most people (younger in particular) always keep things for shorter periods of time than they planned. That doesn't give him a lot of time to regain his losses if the stock he buys tanks over the next couple years. Over 30 years, yeah you should be fine with the market.
Sorry the "stock market" guarantees you shit, especially short term. Risk adverse people should avoid it especially risk adverse people who are counting on the money.