We were talking about investing, finance, etc.. and he told me how lucky I am to have been born when I was. He said that when he was my age, got his first job and started a family, the interest rate on his first mortgage was over 15%. The interest rate on my first house was around 4%. He went on to say that after earnestly saving his entire life he finally has a lot of money, but he only gets around 7% on his portfolio because he has a conservative asset allocation with lots of bonds that only earn around 3-5%.
Basically he lived his life in the least favorable financial conditions for his personal circumstances. When he was young and needed to borrow money, he had to pay historically high interest rates, then 40 years later when he has millions to invest he earns a historically low rate of interest.
Makes me feel very fortunate, but I know the good times can't go on forever. I certainly don't want to see mortgages at 15% again. F that!
Submitted February 21, 2018 at 08:19PM by warrenfgerald http://ift.tt/2om2tHc
