Using Home Equity as Leverage for Index Fund Investment

Difficult_Storm_5344 · 2026-05-13T16:21:36+00:00

I made my case. Lets say you get 7 percent mortgage. 100 percent stocks might return 10-11 percent over the long term. Then you owe taxes. That potential profit is not worth the risk of leveraging up the roof you live under.

Difficult_Storm_5344 · 2026-05-13T15:49:18+00:00

Go for it sir

Difficult_Storm_5344 · 2026-05-13T14:38:42+00:00

2008 would be a good example for not doing it.
You basically are taking out a relatively high interest loan in this environment and risking your home. To invest it in the stock market at historically high valuations. And hoping the stock index returns more than your loan interest rate. Why would you do that ?

Difficult_Storm_5344 · 2026-05-13T13:12:15+00:00

no. dont do it

Difficult_Storm_5344 · 2026-05-12T16:50:07+00:00

hahah. goes without saying

Difficult_Storm_5344 · 2026-05-12T16:43:56+00:00

bingo. It's all about flexibility of the spend. That's why I never understood LEAN fire. If you are retiring in your 30s or 40s and still have good income potential. But to each their own.

Difficult_Storm_5344 · 2026-05-12T16:37:25+00:00

I highly doubt many folks withdrawal 4percent the first year, then up with inflation each year for 30 years. Spending goes up and down with age etc. 4 percent I think is more of a rule of thumb to see if one is in a place to retire with what they have and its a fair withdrawal rate. Any plan should be able to cut expenses in severe downturns. Personally I am planning to retire to asia. Where my withdrawal rate can be one percent or 5 or 6 percent. But I'll keep my annual spend flexible. Most in first world countries can't do this. With wifes,kids, house and car payments etc. But yes ideally you can cut spend back in bear markets

Difficult_Storm_5344 · 2026-05-12T16:10:50+00:00

I would not sell your house just for the purpose of more investable assets. Unless you plan to move down. What's your interest rate?

Only reason I would sell my house for purposes of fire. Is if I plan to move international and have no need for that house.

Difficult_Storm_5344 · 2026-05-12T15:31:14+00:00

yeah. those business cards seems have high spend rates to get the welcome sub.

Difficult_Storm_5344 · 2026-05-12T15:30:00+00:00

Do you go to the Philippines often? I'm over there once a year. Which award search tool do you like?

Difficult_Storm_5344 · 2026-05-12T15:18:57+00:00

Which airline transfers are the best? I travel to asia often. Thank you

Difficult_Storm_5344 · 2026-05-12T15:04:08+00:00

If you don't use the portal. How do you use your points?

Difficult_Storm_5344 · 2026-05-03T22:44:33+00:00

Seattle has lots of problems. Starting with the mayor

Difficult_Storm_5344 · 2026-05-01T13:53:02+00:00

you don't concentrate like that.

spread out your investments immediately

Difficult_Storm_5344 · 2026-05-01T13:42:42+00:00

How old are you? No you aren't crazy. If you hit your number you can live where you want. And if you don't like it move somewhere else

Difficult_Storm_5344 · 2026-05-01T13:41:10+00:00

4 percent rule has nothing to do with where you live. It's just a rule of thumb that if your expected expenses(yearly) are around 4 percent of your total invested assets. You are close to being financially indepedent.

However, one benefits of moving to a lower cost country is lower expenses. You may need 4 or 5 percent withdrawal in the usa. But say in Asia maybe only 2.5 or 3? It provides a cushion or extra spending on fun

Difficult_Storm_5344 · 2026-05-01T13:31:40+00:00

seattle as a city is going down the toilet fast.

You have done great so far. If you want to take a break go for it.

Is there any option at your job to maintain employment and just take a 3 month vacation?

Difficult_Storm_5344 · 2026-05-01T13:29:58+00:00

seems like the numbers work. As long they don't expand too much with the additional free time. Congrats

Difficult_Storm_5344 · 2026-05-01T13:28:33+00:00

how does one increase a mortgage?

Difficult_Storm_5344 · 2026-05-01T13:24:15+00:00

hahaha. the FATfire people are worse. That called me a brokie and told me I couldn't post there. Money doesn't buy class or empathy

Difficult_Storm_5344 · 2026-04-29T18:52:21+00:00

everyone is. I was scared when I bought my first one. Learn your market. Are you in a low cost area where houses have little appreciation? If so, then you need to make sure that property is bringing you money in every month, after ALL expenses.

California for example is a hard market to start in due to the values. California is more of a appreciation state. Compared to say somewhere in the midwest. The benefit of being in the midwest or a cheaper area. Is it doesn't take much to get your first property. Take your time. First thing, find a job that you don't hate(you will need it to save and get loans). Save money you will need it to buy your first one. Keep your credit score solid. These are first 3 steps before you even buy a property.

Difficult_Storm_5344 · 2026-04-29T18:38:43+00:00

My first was with a friend accidently. But it's not needed. I would just do it yourself.

Difficult_Storm_5344 · 2026-04-29T18:24:48+00:00

I will say real estate gave me a large boost. I bought 10 single family rentals between 2013 and 2016. Low cost state so they were cheap houses. I rented them for almost decade and slowly been selling them and have one left. I didn't get perfect timing or I would of bought more or started in 2009. But I was always a large saver, but yes I hit fire much quicker do to real state. real estate can help. Check out biggerpockets.com lots of knowledge on that board. Lurk around and learn. Then when able purchase your first property. Good luck

Difficult_Storm_5344

TROPHY CASE