Salient to Investors:

The maxim “Don’t take a mortgage into retirement with you”’ is no longer true given mortgage rates close to historic lows and lower than on any other loan now or in the future.  Better to invest surplus money dollars in a retirement investment account which should return more than the 3 or 4% mortgage interest, which is tax-deductible.

The maxim “The older you get, the less you should have invested in the stock market” is no longer true because 60 isn’t the old 60, and bank deposits yield little and bond yields are near historic lows and carry the risk of loss when interest rates rise. The average 60-year-old faces a retirement that will last 25 or 30 years and over time stocks still outperform other investments. Large company stocks returned just under 10% a year between 1970 and 2012, a period that covers several market meltdowns.

The maxim “A debit card is safer than a credit card” is only true if you don’t have the discipline to charge only what you can afford to pay off.  Credit cards offer cash rewards, insurance if stolen, and no overdraft fees.

Spend less by going to a less expensive college if it means following your bliss.

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