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  1. #1
    Join Date
    Dec 2003
    Posts
    2,411
    Was putting my head down and paying off my home mortage. The whole time I was doing this lots of people were telling me how stupid it was to be putting my money in "reale estate" instead of the stock market. Not having the stress of a monthly house payment makes life more enjoyable. I would encourage every working man to make this a priority.

  2. #2
    Join Date
    Feb 2004
    Posts
    2,597
    paying off the mortgage must be a great feeling. i hope to know it someday.

    what your friends were telling you is actually true.

    if you have a 6% interest rate, after tax deductions you are probably paying around 4%. so paying off your mortgage would be equilivent to earning 4% in a T-bond. (T-bonds are federal tax free).

    if however you had put the extra payments into a well diversified mutual fund, earning 8-10% compounded annually, and had paid the same taxes, your rate of return would have been, (averaging for MY numbers) after taxes 6%.

    thats 50% more, mortgage money is dirt cheap, use it to your advantage.

    BEWARE: MY OPINION ONLY!

  3. #3
    Join Date
    May 2004
    Location
    Rapid City, SD
    Posts
    7,415
    I just bought my house last spring, so the light at the end of the tunnel is sooo far away, I can only dream. But I've been throwing an extra $60 a month on the principle. I don't know exactly how much it'll help, but I know it'll help a lot.

    I want to be out of debt as soon as I can, but yet lead a fun life too, tough to balance that out.

    My ideas is to divide the "investable cash" into 2 parts, half going towards CD's, stockmarket, 401k, or what ever you prefer, the other half going towards paying off debts.

    Sure investing in something may make you money, but when you're indebt and paying interest, that costs you money. But on the bright side, it's just money, and you can't take it with ya, so enjoy it while you can!

  4. #4
    Join Date
    Apr 2001
    Location
    Camel City, NC
    Posts
    6,233

    bigtime

    I'm looking foward to being done in 5 yrs. too. Glad to hear your there.
    Be safe not fast. body parts don't grow back

  5. #5
    Join Date
    Feb 2004
    Location
    chicago suburbs
    Posts
    4,422
    i've got 8 years left myself. i'll be 45 and my oldest will be starting college.


    on the flip side of no mortgage and debt-free. you are gonna need write-offs or the taxman will eat you alive. summer home, investment property.....sumthin'
    FILL OUT YOUR PROFILE!!

  6. #6
    Join Date
    Jul 2004
    Location
    Victoria,Tx
    Posts
    6,680

    Smile bigtime

    Congratulations, I'm with selfemployed, another 5 years. Amickracing, my note is for 10 more years but, the wife pays an extra 100 or so a month. I lost $70,000 in my 401K when the market went through the "Ajustment and 911". But I made 45k after that in the last 2 years. Haven't caught up yet. I have a rent house in town. It makes money. I may buy another house or trailer house to rent out. You guys are doing well. Enjoy life, that is what I'm trying to tell the wife. Roy

  7. #7
    Join Date
    Feb 2004
    Location
    chicago suburbs
    Posts
    4,422
    it sounds like there's alot to be learned here, moneywise.
    invest in something. you won't get "rich" working hourly. i had some money in the market from about 1998-2001. i rode the wave up and down. i pulled out what was left 6 weeks before 9/11. i took that money and bought a townhouse to rent out. two years later when the rates were ridiculously low we refi-ed our house and pulled out some money and bought a second townhouse. now, what i would like to do is buy a house to fix and flip.






    buy real-estate, God isn't making any more.
    FILL OUT YOUR PROFILE!!

  8. #8
    Join Date
    Feb 2004
    Location
    chicago suburbs
    Posts
    4,422
    bigtime...congrats on getting the mortgage monkey off your back. what does this do to your tax situation? does this put you in a higher bracket?
    FILL OUT YOUR PROFILE!!

  9. #9
    Join Date
    Dec 2003
    Posts
    2,411
    You definately pay more taxes when you don't have the interest deduction. But it is small change compared to the $1100 a month payment I was making a few years ago. I am 42 years old, and have been debt free for about 5 years. We don't have a huge house or new cars, but they're ours.

    This may not be the best investment strategey for everyone. But it has made life more enjoyable and less stressful for me and my family.


  10. #10
    Join Date
    Feb 2004
    Location
    chicago suburbs
    Posts
    4,422
    sounds like your stategy is working just fine.
    FILL OUT YOUR PROFILE!!

  11. #11
    Join Date
    Jul 2004
    Location
    Victoria,Tx
    Posts
    6,680

    Smile

    There was a time in my life, that I paid $1100 a month for child support for a while to the 1'st wife, 2nd wife, $700 a month for 3 more years! The ex will blackmail me to pay for something for her, but it is still cheaper than the $900 she could get, so says the AG' office. I got custody of my children from my first wife. She paid $150 a month. I wrote her a check and gave it back to her every month. That made me and the boys happy.

  12. #12
    Join Date
    Mar 2003
    Location
    Cincinnati
    Posts
    7,977
    I owe, I owe, it's off to work i go........ I will always have a mortgage unless my kids make it big.

  13. #13
    Join Date
    Feb 2003
    Location
    South Carolina
    Posts
    1,333
    pay it off it feels good

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