Right now, Gold, Oil, Interest and equities are all down rather sharply. It's probably only momentarily, however, simply the market climbing it's "wall of worry." It seems they all have to drop back so they can take another run at new highs...
There are truly two kinds of debt service... generally good and generally bad! I believe it's prudent to use other people's money if the price is right and it's tax deductible as a bonus, don't you? It's simply part of doing business in America, I think.
"I believe it's prudent to use other people's money if the price is right and it's tax deductible as a bonus, don't you? It's simply part of doing business in America, I think."
First, there are people who can't stand being in debt and the advise, we got from our CPA would drive those people up the wall. I have two BILS in that category.
Next there are people who look for any excuse to borrow more money and love being in debt. Hopefully, there are not too many of these in the conservative ranks.
Last there is a large majority of people like my wife and I. Most of our savings are in our IRAs/401ks. Taking money out of these plans costs us big taxes for the year, the money is taken out as our income would increase substantially that year.
Next assume we took $100 K out of my IRA to pay off our mortgage. Besides the higher tax rate, we would never be able to generate income from that $100,000 under the protection of the deferred taxation of an IRA, that would now be gone from the IRA. We both have 20 plus years of expected life, and we don't want to lose that $100k from our IRA pool for future investments and income.
If that $100 K had been laying around in a non tax deferred saving account, we probably would have pulled it out and paid off our mortgage and need repairs/updates on our home.
We didn't and went the refi way and have no problems sleeping at night.