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To: SierraWasp; tubebender

"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.


34 posted on 03/13/2007 4:29:30 PM PDT by Grampa Dave (GW has more Honor and Integrity in his little finger than ALL of the losers on the "hate Bush" band)
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To: Grampa Dave; tubebender
Well, anyways... Suze is REALLY pichin an bichin on Channel 6 KVIE PBS in Sacramento today!!! It's pledge week and she's really layin it on thick, especially to the girls!!! Lordy!!!

Yes, I know some people who climb the walls over even "good debt!" Some other people climb the walls over other things that make them uneasy, too! Sometimes when there's absolutely no reason to be concerned... It's just the way their minds are hard-wired!!! (nothing wrong with that!)

I find the people in, or who have been in business are much more used to using other people's money, especially in the Real Estate business!!! Leverage is everything to most of them!!!

36 posted on 03/13/2007 6:30:19 PM PDT by SierraWasp (GovernMental EnvironMentalism... America's establishment of an unconstitutional State Religion!!!)
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