Taking money off the table

Post by abuani » Thu, Oct 30, 2025, 9:41 PM UTC

gbriel wrote: post #58

throw0101c wrote: post #46

I participate in a personal finance sub-reddit, and there is often a question of whether someone should pay off their mortgage (completely, or make some lump sum payments). The mathematical answer is that if your interest rate is lower than the expected returns of some kind of portfolio you have, than you'll make more money investing. But I like to bring up what Morgan Housel, author of the book The Psychology of Mon…

If you have a 2.6% mortgage which is less than inflation, then you are making money from the bank. Paying that off would be ridiculous.

Post by lostlogin » Thu, Oct 30, 2025, 9:45 PM UTC

gbriel wrote: post #58

throw0101c wrote: post #46

I participate in a personal finance sub-reddit, and there is often a question of whether someone should pay off their mortgage (completely, or make some lump sum payments). The mathematical answer is that if your interest rate is lower than the expected returns of some kind of portfolio you have, than you'll make more money investing. But I like to bring up what Morgan Housel, author of the book The Psychology of Mon…

If you have a 2.6% mortgage which is less than inflation, then you are making money from the bank. Paying that off would be ridiculous.

Post by lostlogin » Thu, Oct 30, 2025, 9:51 PM UTC

dkural wrote: post #64

jimkleiber wrote: post #34

Earlier quoted context omitted.

I think you're hitting on something that very rarely gets discussed, at least in the US and maybe some other Western societies. I wonder if it's just simple depreciation or compound depreciation (or whatever the opposite of compound interest would be). Me finding the money to climb Kilimanjaro at 23 is different than me having the money at 40 but worse knees. Thank you for pointing this out and I hope someone formali…

As someone who is not so young anymore, but also not old, I think it is compound depreciation.

Post by SoftTalker » Thu, Oct 30, 2025, 9:54 PM UTC

pjmorris wrote: post #48

GCA10 wrote: post #29

There's a crucial extra factor that isn't in the original article, but ought to be: Money's ability to buy great experiences decreases as you get older. I've seen this with beach vacations, road trips to see a favorite band, fast cars, ski trips, etc. Seize the moment, friend! What you can do NOW with that 10% slice will never exactly be on your possibilities map again.

We were in our 20's when my friend said 'A day in your 20's is worth a year in your 30's, a day in your 30's is worth a year in your 40's, etc...' Now in our 60's we're a little less adamant - every day is worth something.- but it has been a useful perspective.

Post by SCUSKU » Thu, Oct 30, 2025, 9:57 PM UTC

collinmcnulty wrote: post #63

mason55 wrote: post #7

A 10% tender offer isn't really an interesting discussion. You should take definitely take 10% off the table unless you're already pretty wealthy. The interesting discussion is how much you should take off the table if the offer is uncapped.

Growing up around people who lost everything, job and savings, working at Enron, you should take all the money they’ll let you. You are structurally long your company already, because if they struggle you could lose your job. Diversify your wealth away from that concentrated position as much as possible if you’re offered a fair price.