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Richard Sowa
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Latest on Mon, 01:40 pm
: Wiz, Thanks for the question.S ome people should own a home. Some people shouldn't. The FINANCIAL ANSWER OF THE WEEK is just giving [...]
: Great post on mortgages. I wonder though, is it still true when you consider that in 20-30 years, your pmt will be $0 and your [...]
: Warren, Thanks for your question. An ETF or Exchange Traded Fund is similar to a mutual fund except it is bought and sold like a [...]
: A friend of mine suggested I put my money into an ETF. Could you explain to me what an ETF is?
: Wow, what a great site!
Wow, what a great site!
A friend of mine suggested I put my money into an ETF. Could you explain to me what an ETF is?
Warren,
Thanks for your question. An ETF or Exchange Traded Fund is similar to a mutual fund except it is bought and sold like a stock. It usually has a cost to purchase and sell which most regular mutual funds don’t have. The ETF usually matches a stock market index whereas a mutual fund is usually, but not always, specific stocks and/or specific bonds, and/or cash. I hope this helps to answer your question.
Rich
Great post on mortgages. I wonder though, is it still true when you consider that in 20-30 years, your pmt will be $0 and your rental pmt would be 2-3 times what your mortgage pmt was? Isn’t that what most of us work towards? The idea of security in retirement? How about giving us a comparison over 20 years between rent vs buy. And it would be fair to assume we are still paying the mortgage after the 20 years.
Wiz, Thanks for the question.Some people should own a home. Some people shouldn’t. The FINANCIAL ANSWER OF THE WEEK is just giving another way of thinking about home ownership. Trying to compare rent vs buy over a 20 year time people would be difficult and inaccurate because of all the unknown and hidden variables ie: taxes, home repairs, inflation, location and on and on. This recent mortgage mess has also created a new dilemma for current and future homeowners. Only you can make the final decision on whether you should rent or buy.
Rich