1/3 of Americans don't save for retirement. (deduction, IRS, investment, cost)
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I don't worry about it either. There's nothing really I can do to change it. I like being able to manage my future as my life changes. I'm not saying I'm against retirements but I am against putting more than 3% into it. I know people who put 10% every paycheck.
Are you aware of 72t rules? Some people aren't. Just want you to know the option is available.
What do most retirees use their money for? Their bills and the primary bill is the mortgage. Why not go after the primary bill and try to remove that. I rather get 2k a month with no mortgage bill then 4k a month with a mortgage bill.
For quite a lot of people, mortgage debt is the cheapest debt they will ever have. Trying to pay it off at all is often financially foolish. Current seniors will have had nearly 15 years worth of chances to refinance into lower interest rates and longer maturities. Those who did so are sitting pretty.
Quote:
Originally Posted by Dub D
Simple question. If I said I'd give you $5,000 right now or I'd give you $10,000 thirty years from now, which would most people pick?
Hopefully they would take the five grand and run, as the skimpy 2.34% rate of return you are offering might very well not be enough to cover even simple inflation.
Quote:
Originally Posted by Dub D
The American economy today is a joke. It's hanging on by a thread. I seriously feel another down time is coming within the next 18 months.
Well, who would be in a better position to know than you?
Last edited by The_Bishop; 08-19-2014 at 12:08 PM..
Most people would pick $5,000 now, because 10,000 30 years from now is a 2.2% return without considering inflation, which is basically a money market account. If that's what you think the stock market offers, I see why you haven't done any investing. $5k 30 years from now at 7%, which is a reasonable return to expect including inflation (it would be higher if not adjusting for inflation) would be around $50k.
If the analysis deals with providing the resources that one will eventually need to live off, a 7% rate of return is much, much too high. Assuming a long-term net real rate of return above 2% is to invite disaster -- a thing which is typically only too happy to respond to invitations by actually showing up.
Last edited by The_Bishop; 08-19-2014 at 12:00 PM..
Can you tell me the tax benefits of my mortgage? Not really. I know there is a possible benefit there just as you need a place to live and I wasn't ignoring it but rather talking about the expense side of real estate. Surely you have lots of factors on calculating a return on your investment. When it comes to the mortgage interest though you have to itemize and if you are aggressive in paying down or paying off your mortgage it's possible and realistic that this benefit goes away.
Also this is a matter of paying a dollar in interest to get at most 40 cent back. That's okay to you but putting 1.00 aside and getting 80 cents back isn't
It made a massive difference on my income tax return. Whatever I would've owned, I got in as a refund. It was over a 6k difference. Again, the rent for an good apartment is nearly the same as the home I had. Plus, living in an apartment compared to a home sucks.
It made a massive difference on my income tax return. Whatever I would've owned, I got in as a refund. It was over a 6k difference. Again, the rent for an good apartment is nearly the same as the home I had. Plus, living in an apartment compared to a home sucks.
You were in the top tax bracket and paid 15k in mortgage interest? If you made 750k a year and had 15k in mortgage interest that would knock 5940.00 off your tax bill
Also when people tout real estate and the great investment vehicle they often don't full detail the cost involved with owning/maintaining it. I think a lot of people would be surprised if they actually kept a log of expenses over say 5-10 years to see what that adds up to in relation to their appreciation
There is a significant sinking fund attached to every home, and owners will feed into it in one way or another. Roofs, paint, flooring, appliances, HVAC systems and the like all deteriorate over time and ultimately need replacement. A new or recently upgraded home has all those things in Grade-A condition, so the sinking fund is empty. If you don't refill it every year, the time will come when you need to replace all these things, but there isn't any budget to throw at it. If you try to sell the home at that point, your sales price will be reduced by the amount that you should have put into the sinking fund. Pay as you go, or pay at the end, but you WILL pay, and it's not just a little bit of money.
You were in the top tax bracket and paid 15k in mortgage interest? If you made 750k a year and had 15k in mortgage interest that would knock 5940.00 off your tax bill
If I made 750k, why the hell would I care about 6k? Seriously. Don't bother replying, I'm done with this thread. Going in circles now.
If I made 750k, why the hell would I care about 6k? Seriously. Don't bother replying, I'm done with this thread. Going in circles now.
Kinda my point if you didn't make 750k or pay a multiple of 15k in mortgage interest then it didn't impact your taxes 6k
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