Posted on 07/15/2009 6:48:43 AM PDT by Kaslin
However, even assuming a $300000 mortage the payments would be nowhere near your figures. Math first finance afterwards?
Oh, OK. Sorry if I was touchy.
That will work as long as you have some guaranteed source of cheap dollars in the future. If you are relying on savings to generate those cheap dollars, remember that your savings base relatively shrinks with inflation. The economy at that time might not employ you, so living off your savings will get rid of them faster then.
It IS something....
I understand the inflationary aspects of paying a mortgage with future dollars of less value. However, with todays environment involving the government cancelling and re-writing existing contracts, ala GM and Chrysler bondholders, I can see them doing the same for existing mortgages with interst rates below the rate of inflation.
They, the government, have shown they will obviously protect and enhance the coffers of the financial industry.
I know, I know, people would squeal and raise heck, but look what they have done in just six months. Just imagine, monthly mortgage payments going from a thousand bucks @ 5% to fifteen hundred @ 8%. Wow, an adjustable rate mortgage you didn’t sign up for. All for the good of the economy to prevent its collapse. Now where have we heard that before?
If you buy in at 270.00 an ounce and cash out at 980.00 an ounce that’s called a profit.
Wise advice that I wish I would have heeded ten years ago...but ten years ago they were saying to NOT pay it off because of the interest deduction. *sigh*
Then again who would have thought we were heading for a CommieNation that was out to grab all the money as fast as possible?
I am a conservative, I do not believe in social engineering with taxes. Maybe liberals and republicans do.
I don’t think it was ever a social engineering thing in the first place. Perhaps if mortgage interest were singled out for deductibility you’d have a point, but that wasn’t the case. I believe the thinking was that a loan was a zero value paper transaction and logically shouldn’t be producing taxes at all. Thus if interest income was going to be taxable, revenue neutrality would require that payment of interest be deductible. That makes more sense to me than having both interest receipts and payments off books. Obviously, having it on books when it generates a tax bill and off books when it would be deductible is a government scam to give those creeps more of OUR money.
Maybe the definition will help.
Cute, but would tyou care to post something relevant next time to back up your socialist assertions?
Better than you deserve!
The other advantage of paying off your home is that the income you need from that nest egg in order to live goes down dramatically, meaning you don’t have to make more interest on the nest egg to offset the interest you pay on the mortgage.
Duh, i know what social engineering is. It doesn’t apply to your post, so how about answering my original question? It would be a first, as you really suck at answering tough questions like “Will you back up your assertions?”
OK, i’ll be completely fair, and retract the “socialist” comment and replace it with “anti-capitalist”.
With your line of thinking unearned appreciation would also be taxable. My thinking is earning of interest off of secured government bank insured savings should not be taxable. What is the treatment under the fair tax plan???http://www.usnews.com/blogs/the-home-front/2009/02/25/5-beefs-with-the-home-mortgage-interest-deduction.html
No with you it is all ways your BS statement.
IMO, pay off the mortgage and put her C/D in a money market instead.
Pinging not for the original article, but for the discussion that follows.
An ardent desire to pay off my mortgage with my 401K is only cooled by the notion of the tax bracket+penalties I would incure. But oh dayyum how I wanna shrug off the worry of defaulting due to reduced income and impending future tax increases.
I will try to hold out till at least next year, when the kissoff payments from my former employer can’t affect 2010’s income filing.
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