Re: refinancing advice

From: jack law <jlaw@pop.kis.net>
Subject: Re: refinancing advice
Date: Sat, 8 Aug 1998 20:48:07 -0400

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>Well, the most obvious thing that you are missing is the possibility
>that your investments will drop.  Have you considered the possibility
>that the current "correction" will lose an additional 40%?

I agree.  If I do the refinance, I certainly wouldn't dump the entire amount
in an aggressive stock fund.  I understand that there are no guarantees.


>
>Basically, you are thinking of borrowing money to invest in the stock
>market.  That's risky, ESPECIALLY with the market as high as it is.
>There are plenty of opportunities out there that could turn this into
>a full fledged bear market.  The market is nervous and it could break
>down in a hurry....or slowly, bit by bit.

I agree again.  I certainly would stay in a balanced fund for at least five
years.


>
>Also don't forget that the "tax writeoff" only recovers a portion of
>the money you are "giving away" to the bank.

I get the picture.  I am gambling getting a higher return against a guaranteed
%6.75 minus my tax bracket by paying down my existing mortgage.  In addition,
the peace of mind that a low mortgage brings.

I really appreciate you taking the time to contact me.  Thanks I appreciate
your advice.
 Jack








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