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Old 12-20-2018, 06:17 PM
 
426 posts, read 90,455 times
Reputation: 579

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Quote:
Originally Posted by Larry Caldwell View Post
You have to pay it off sooner or later, but you should not starve your retirement savings to do it. My wife and I paid off our home in the middle of 2008, which was a retirement goal. That allowed us to live on my wife's income and save my whole income for 5 years, which was a nice capper on the retirement savings, but we had retirement savings.

You realized most of the advantage of home ownership by buying in the first place. You locked in your housing costs the day the sale closed, and checked out of the inflation rat race. If you have 10 years left on a 30 year mortgage, you are living with 1998 housing costs. If you bought a decade later, you not only got a historically great deal on the purchase price, your mortgage is free money. The interest is covered by inflation. Milk that for what it's worth.
I agree with this. When you are debt free, you reduce your income needs as as to get into a lower tax bracket. My strategy has been put as much money into tax deferred vehicles (401K) and keep debt and income low particularly now with Tax Cuts and Jobs Act changes on deductions.
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Old 12-21-2018, 09:49 AM
 
307 posts, read 67,294 times
Reputation: 415
Quote:
Originally Posted by inquisitive2 View Post
I'm about 4 years into my mortgage. Am I better off to make some extra payments on my mortgage or invest in some stock?
I did both until the stock market proved that all of my monthly contributions were essentially useless paper and controlled by a few people. Then I moved the balance of the stock account to pay off my primary home, I have undeveloped land too, and have never looked back. The logic for that move was that I will always have my home, but the stock market is not in my control and that is just paper. If my home value drops, so do my taxes and visa versa. Rents are uncontrollable too. So I avoided those as soon as I could. Having the mortgage cash allows me to live much better.
I do not have to worry about the investment thieves lurking enjoying living their glorious lives with my money.
However, I research and invest in tangible items that I can enjoy and later will continue to have a strong appeal.
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Old 12-21-2018, 01:58 PM
 
66,737 posts, read 67,787,764 times
Reputation: 44696
i started investing in 1987 . those investment thieves turned 100k in a total market fund in to 2 million today including the drop .

we have met the enemy and he is us . all our mutual funds we own are the " big boys " keep that thieving and growing our assets .
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Old 12-21-2018, 02:45 PM
 
1,069 posts, read 733,776 times
Reputation: 2033
Quote:
Originally Posted by mathjak107 View Post
there is good debt and there is bad debt . i suggest everyone who is fuzzy on this , learn the difference
What a load of poo! Debt of any kind is bondage.
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Old 12-21-2018, 05:35 PM
 
66,737 posts, read 67,787,764 times
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i hope you don't end up believing that ..... don't ever buy a house then either unless you got cash .. how many people would be a whole lot poorer if it wasn't for the homes they bought WITH A MORTGAGE . in fact more than 1/2 of retirees who retire end up retiring because of the homes they bought or other real estate they bought , BORROWING MONEY .
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Old 12-23-2018, 11:14 AM
 
1,069 posts, read 733,776 times
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Quote:
Originally Posted by mathjak107 View Post
i hope you don't end up believing that ..... don't ever buy a house then either unless you got cash .. how many people would be a whole lot poorer if it wasn't for the homes they bought WITH A MORTGAGE . in fact more than 1/2 of retirees who retire end up retiring because of the homes they bought or other real estate they bought , BORROWING MONEY .
We are cash buyers.
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Old 12-23-2018, 11:32 AM
 
66,737 posts, read 67,787,764 times
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/4's of homeowners need a mortgage . a mortgage can be good debt .
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Old 12-23-2018, 12:58 PM
 
1,069 posts, read 733,776 times
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[quote=mathjak107;53960016]/4's of homeowners need a mortgage . a mortgage can be good debt .[/QUOTE

I agreed, somewhat, until I took a long, hard look at an amortization chart and realized how I was being fleeced by front-loaded interest and ended up paying nearly double the purchase price at the end of 30 years.
It’s just herd mentality. Debt is bondage and adding the word “good” in front doesn’t change that fact.
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Old 12-23-2018, 01:34 PM
 
8,211 posts, read 3,986,111 times
Reputation: 10943
[quote=Sharpydove;53960679]
Quote:
Originally Posted by mathjak107 View Post
/4's of homeowners need a mortgage . a mortgage can be good debt .[/QUOTE

I agreed, somewhat, until I took a long, hard look at an amortization chart and realized how I was being fleeced by front-loaded interest and ended up paying nearly double the purchase price at the end of 30 years.
It’s just herd mentality. Debt is bondage and adding the word “good” in front doesn’t change that fact.

If the alternative is throwing away money on rent, then mortgage debt is good. Even if you ended up paying double after 30 years, you ended up with an asset.
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Old 12-23-2018, 01:43 PM
 
66,737 posts, read 67,787,764 times
Reputation: 44696
[quote=Sharpydove;53960679]
Quote:
Originally Posted by mathjak107 View Post
/4's of homeowners need a mortgage . a mortgage can be good debt .[/QUOTE

I agreed, somewhat, until I took a long, hard look at an amortization chart and realized how I was being fleeced by front-loaded interest and ended up paying nearly double the purchase price at the end of 30 years.
It’s just herd mentality. Debt is bondage and adding the word “good” in front doesn’t change that fact.
this is untrue ... mortgages are not front loaded , that is a myth . that implies your rate is higher in the early years then the later . your rate is constant and you only pay on your balance .

if your rate is 4% you pay 4% on the balance all the way through . you pay the same rate in the beginning as the end . the balance you pay on is dropping so you pay less interest as time goes on .

this is a standard 30 year amortization . 200k , 30 year 4% .... you can see the interest on each years balance is 4% regardless if day 1 or 30 years from now ..


Last edited by mathjak107; 12-23-2018 at 01:55 PM..
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