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Mortgage Arbitrage - What Are the Tactics?
For mortgage arbitrage to work, you need the long term aggregate investment performance to be at least as good as or better than your mortgage rate. One possible tactic is to set that return as the minimum amount that you need to amass in a given year and then any surplus beyond that is what you're willing to harvest. That's one suggested possible tactic. Another would be to approach it in the same way that a retiree does, where you set a annual draw down number, like three %, or perhaps even two% for taxable brokerage account every year.
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