[USER]

Let’s say you want to buy a place for $500,000. Instead of paying cash for it you’d want to invest that amount of money so that the principal and interest would be covered from the money you invested.

What would you invest in?

The main idea is to have the place paid and the initial amount to grow.

[John]

you could do a bond ladder which is guaranteed but you wouldn’t match the mortgage interest rate

[Richard]

Unless you can match a fixed-income investment to the mortgage rate (unlikely I think), you’ll need a buffer to cover volatility and SORR.

Perhaps something like the golden butterfly portfolio.

[Kevin]

It only works if you can cover the payments when the market is down. Mathematically it may look good but you aren’t factoring in downside risk.

[Shawn]

This is a primary residence with no rental income correct? So you are asking how to have this money cover your housing payment? I would start with at least a year of payments in cash.

If you invest too much in bonds and cash you are just going to be losing money in this interest rate environment.

I would invest everything else in risk assets, mostly stocks with a dividend focus.

[Dion]

I’m not worried about what I could do with the money as an investment. The reason I use leverage is because I want levered appreciation and leveraged depreciation.

And the asset protection that comes from having a mortgage.

[Travis]

S&P 500 averages a 10% return over the last 90 years. A $500,000 investment would yield $50K a year in most cases.

[Author]

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