On Thu, 17 Sep 2009 13:31:45 -0400, Wayne.B
wrote:

On Thu, 17 Sep 2009 06:53:29 -0400, JohnH
wrote:

Given - CD maturing. Amount sufficient to pay off mortgage. Mortgage
rate is 5.25%. New CD rates - 3% for five years, 4% for seven years.

What would you do?

Stock market exposure is high enough.

Will be at the golf course pondering the situation. Back later.

No, I don't want to buy a red barn.

There is a strong probability that we will be heading into a highly
inflationary economy some time in the next few years. If so, 5%
mortgages of any kind will be totally unobtainable and cash will be
trash. I'd consider splitting the cash between two exchange traded
funds: TIP (Inflation protected treasury notes), and GLD, a gold
fund. For high current income and inflation protection consider LINE
(Linn Energy), currently yielding 11.6% and with a *lot* of oil in the
ground.

http://finance.yahoo.com/q?s=TIP

http://finance.yahoo.com/q?s=gld

http://finance.yahoo.com/q?s=LINE


Thanks, Wayne. Right now I'm not interested in putting more into the
market. This is purely a CD vs mortgage decision.
--

John H

On Thu, 17 Sep 2009 15:10:39 -0400, JohnH
wrote:

Thanks, Wayne. Right now I'm not interested in putting more into the
market. This is purely a CD vs mortgage decision.

Why a CD, what could be more secure than inflation protected treasury
notes?

On Thu, 17 Sep 2009 16:19:23 -0400, Wayne.B
wrote:

On Thu, 17 Sep 2009 15:10:39 -0400, JohnH
wrote:

Thanks, Wayne. Right now I'm not interested in putting more into the
market. This is purely a CD vs mortgage decision.

Why a CD, what could be more secure than inflation protected treasury
notes?

No reason. Lack of knowledge about the notes. I'll go back to that
site and learn more. When I first looked, I thought it was some sort
of equity.
--

John H

On Thu, 17 Sep 2009 18:09:42 -0400, JohnH
wrote:

No reason. Lack of knowledge about the notes. I'll go back to that
site and learn more. When I first looked, I thought it was some sort
of equity.

There are two ways to buy inflation protected treasuries. You can buy
the actual note like any other government debt instrument, or you can
buy an exchange traded fund (ETF - TIP) that holds them. TIP is more
convenient for most people since it trades like a stock even though it
is actually a fund. Your stock broker can give you more information.

On Thu, 17 Sep 2009 19:28:05 -0400, Wayne.B
wrote:

On Thu, 17 Sep 2009 18:09:42 -0400, JohnH
wrote:

No reason. Lack of knowledge about the notes. I'll go back to that
site and learn more. When I first looked, I thought it was some sort
of equity.

There are two ways to buy inflation protected treasuries. You can buy
the actual note like any other government debt instrument, or you can
buy an exchange traded fund (ETF - TIP) that holds them. TIP is more
convenient for most people since it trades like a stock even though it
is actually a fund. Your stock broker can give you more information.

Thanks, I'll give him a call next week. We're doing Gettysburg this
weekend.
--

John H

On Thu, 17 Sep 2009 15:48:45 -0400, wrote:

On Thu, 17 Sep 2009 15:10:39 -0400, JohnH
wrote:

Thanks, Wayne. Right now I'm not interested in putting more into the
market. This is purely a CD vs mortgage decision.

It is really even simpler than that. You are betting CD vs real
estate. Personally I like the security of not having a mortgage. One
less bill I have to pay.

I think a lot is psychological. I also like the idea of not sending
the money to the mortgage company each month. I'd rather be sending it
to my savings or investments.

'Course, I'd probably end up with a new motorcycle!
--

John H

JohnH wrote:
On Thu, 17 Sep 2009 15:48:45 -0400, wrote:

On Thu, 17 Sep 2009 15:10:39 -0400, JohnH
wrote:

Thanks, Wayne. Right now I'm not interested in putting more into the
market. This is purely a CD vs mortgage decision.
It is really even simpler than that. You are betting CD vs real
estate. Personally I like the security of not having a mortgage. One
less bill I have to pay.

I think a lot is psychological. I also like the idea of not sending
the money to the mortgage company each month. I'd rather be sending it
to my savings or investments.

'Course, I'd probably end up with a new motorcycle!
--

John H

German this time?

On Thu, 17 Sep 2009 20:07:37 -0400, D 2 wrote:

JohnH wrote:
On Thu, 17 Sep 2009 15:48:45 -0400, wrote:

On Thu, 17 Sep 2009 15:10:39 -0400, JohnH
wrote:

Thanks, Wayne. Right now I'm not interested in putting more into the
market. This is purely a CD vs mortgage decision.
It is really even simpler than that. You are betting CD vs real
estate. Personally I like the security of not having a mortgage. One
less bill I have to pay.

I think a lot is psychological. I also like the idea of not sending
the money to the mortgage company each month. I'd rather be sending it
to my savings or investments.

'Course, I'd probably end up with a new motorcycle!
--

John H

German this time?

Probably not. I like the BMW, but I also like the Honda ST1300. Looks
wise there's not much difference:

http://www.motorcyclistonline.com/20.../05/index.html
http://www.bmwmotorcycles.com/us/en/..._thumbnail.jpg

Costwise, the BMW is about $3K more than the Honda.
Reliability/serviceability wise, I'd have to do some serious
reviewing.

Lastly, there's 'people-wise'. The Moto Guzzi crowd is a great group
of people. Attending MG rallies is always like old home week. Shoot,
in another 15 years I may get the 'oldest rider' award, who knows.
--

John H

JohnH wrote:
On Thu, 17 Sep 2009 20:07:37 -0400, D 2 wrote:

JohnH wrote:
On Thu, 17 Sep 2009 15:48:45 -0400, wrote:

On Thu, 17 Sep 2009 15:10:39 -0400, JohnH
wrote:

Thanks, Wayne. Right now I'm not interested in putting more into the
market. This is purely a CD vs mortgage decision.
It is really even simpler than that. You are betting CD vs real
estate. Personally I like the security of not having a mortgage. One
less bill I have to pay.
I think a lot is psychological. I also like the idea of not sending
the money to the mortgage company each month. I'd rather be sending it
to my savings or investments.

'Course, I'd probably end up with a new motorcycle!
--

John H
German this time?

Probably not. I like the BMW, but I also like the Honda ST1300. Looks
wise there's not much difference:

http://www.motorcyclistonline.com/20.../05/index.html
http://www.bmwmotorcycles.com/us/en/..._thumbnail.jpg

Costwise, the BMW is about $3K more than the Honda.
Reliability/serviceability wise, I'd have to do some serious
reviewing.

Lastly, there's 'people-wise'. The Moto Guzzi crowd is a great group
of people. Attending MG rallies is always like old home week. Shoot,
in another 15 years I may get the 'oldest rider' award, who knows.
--

John H

You said new so I took that as a 2010 model.

On Fri, 18 Sep 2009 19:58:13 -0400, D 2 wrote:

JohnH wrote:
On Thu, 17 Sep 2009 20:07:37 -0400, D 2 wrote:

JohnH wrote:
On Thu, 17 Sep 2009 15:48:45 -0400, wrote:

On Thu, 17 Sep 2009 15:10:39 -0400, JohnH
wrote:

Thanks, Wayne. Right now I'm not interested in putting more into the
market. This is purely a CD vs mortgage decision.
It is really even simpler than that. You are betting CD vs real
estate. Personally I like the security of not having a mortgage. One
less bill I have to pay.
I think a lot is psychological. I also like the idea of not sending
the money to the mortgage company each month. I'd rather be sending it
to my savings or investments.

'Course, I'd probably end up with a new motorcycle!
--

John H
German this time?

Probably not. I like the BMW, but I also like the Honda ST1300. Looks
wise there's not much difference:

http://www.motorcyclistonline.com/20.../05/index.html
http://www.bmwmotorcycles.com/us/en/..._thumbnail.jpg

Costwise, the BMW is about $3K more than the Honda.
Reliability/serviceability wise, I'd have to do some serious
reviewing.

Lastly, there's 'people-wise'. The Moto Guzzi crowd is a great group
of people. Attending MG rallies is always like old home week. Shoot,
in another 15 years I may get the 'oldest rider' award, who knows.
--

John H

You said new so I took that as a 2010 model.

Yeah, I hit the wrong button. That's what I meant.

I'll probably die owning the bike I've got. It should last another
twenty years. I'll probably go first, or together with the bike if
Harry has his way.
--

John H