Friday Reading: Rent vs Own

By Harry Sit

My attempt to take a new job failed. The prospective employer not only would compensate just a small percentage of my unvested RSUs, but it also would pay less on an on-going basis. I was told that I should focus on the growth potential.

As much as I like the project, I’m not crazy enough to take a pay cut for it. If it’s a hot pre-IPO company, I might take a chance but not for an established S&P 100 company. A longer commute is another minus too.

We now continue with our regular programming …

Matthew Amster-Burton interviewed Jane Hodges, the author of the book Rent vs Own. One of these days I will finally tackle this thorny owner-occupied real estate problem. Is your home an investment, a consumption item, or both? Are you borrowing to buy stocks when you have a mortgage? Should you pay off your mortgage as soon as you can or stretch it out?

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Today is the last day to get a free Kindle book Investing Made Simple by Mike Piper at Oblivious Investor. If you prefer a paper copy it’s only $5. I reviewed a previous edition of this book. It does make investing very simple, the way it should be.

I had some theories for what makes investing hard. If you haven’t read that post, tell me if you agree and what you think makes investing harder than it should be.

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Kevin at Kevin On Investing wrote a very detailed post about how and why he’s investing in 6-year CDs at INOVA Credit Union. The step-up CD at INOVA Credit Union is a great alternative or addition to investing in bond mutual funds.

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Wade Pfau wrote another follow-up to the idea of using a TIPS ladder for basic needs: Safety-First Retirements Are Expensive with Low Interest Rates! It shouldn’t be a surprise at all. You won’t get very far with bonds when interest rate stays low for 30 years.

Interest rates moved up somewhat in the last week or two. That’s great. I hope they will continue on that path. I’m getting really tired of low rates.

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White Coat Investor said Why Municipal Bonds Probably Don’t Belong In Your Portfolio. I disagree. Muni bond mutual funds are great tax efficient investments. They don’t get much competition from foreign governments who demand highest liquidity. They don’t get much competition from pension funds and 401k plans that don’t pay taxes anyway. The goodies are left alone to individual investors. I invest in Vanguard muni bond funds.

Blog of the Week: Kevin On Investing

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Posted on March 23, 2012 under News. Keywords: , , , , .

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