You may also be interested in Rick Ferri's
thoughts on lump sum investing, which contradicts some of what I've argued here.
Not exact matches
On your 2nd point, I
think you are right that investing
lump sum historically has proven to yield higher returns.
Instead of paying a large
lump sum on an annual or semi-annual basis, these fees are automatically consolidated into your monthly mortgage payment so you don't even have to
think about it.
Once the debt settlement company
thinks it can negotiate a lower amount
on the debt you owe with the creditor and you have a
lump sum ready to pay the hopeful amount, the company will start negotiating with your creditors.
If you are hesitating between investing every paycheck or just investing in a
lump sum, you can read my
thoughts on the best way to invest and
lump sum investing.
There is the school of
thought to max out the RRSP and use the tax refund to
lump sum on your mortgage each year.
As for putting in a
lump sum or small amounts over time I
think it depends
on your circumstances.
You can
think of reinstatement as a single
lump -
sum payment to get caught up
on your missed mortgage payments from the past.
Instead of relying
on a software program that would probably recommend more than you would ever buy, he suggested that you
think in terms of two
lump sums — one to pay off your mortgage and cover your children's college education and the other to create income for your survivors.
I
think on virtually every claim I have helped file, the beneficiary has taken the benefit in a
lump sum.
There are many variations and time limits
on policies, but I like to
think of term insurance as for a specific reason with a defined time line, ensure payoff of mortgage, funding education, debt payoff, budget restrictions,
lump sum for a purpose.