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Key:
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Joined: Aug 2002
Posts: 3,619
10 point
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10 point
Joined: Aug 2002
Posts: 3,619 |
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Joined: Mar 2015
Posts: 4,744
10 point
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10 point
Joined: Mar 2015
Posts: 4,744 |
Here’s what I’d do. I was in this same situation last year. For one no need to pay the vehicle off when vehicles are only built for 150 k miles it’s seems like nowadays so I figure you will always have a car note. The house seems to have an affordable mortgage on it so why not take that money and buy you some investment property and let it pay your house note. Then you will have more money to save up to buy more investment property in the future
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Joined: Dec 2015
Posts: 25,087 Likes: 1
Pumpkin - The Thermal Expert
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Pumpkin - The Thermal Expert
Joined: Dec 2015
Posts: 25,087 Likes: 1 |
Spend every dime of it on gold and silver, then just sit back and wait knowing youll be rich when the dollar goes under.
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Joined: Feb 2013
Posts: 8,499 Likes: 1
14 point
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14 point
Joined: Feb 2013
Posts: 8,499 Likes: 1 |
I’d go ask someone you know personally, who has built wealth, for advice.
My .02. Based on the assumption that you are older. Payoff the truck. Set aside 6ish months of cash reserve. Max out any retirement option you have that offers a match. Max out Roth IRA for you and your wife. Then throw any remaining at the house.
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Joined: Jul 2011
Posts: 37,676
Freak of Nature
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Freak of Nature
Joined: Jul 2011
Posts: 37,676 |
Should I be worried about an emergency fund if my house is paid off and I can pull out money against it if I run into a crisis? I could also sell stocks out of my personal investment account if I ran into a need for cash. A home equity line is a good tool to have on the sideline. I've had one for several years, even though my house has been paid off nearly 20 years. I've used it to buy investment property. They are usually a sweetheart rate too. Curious , how long you had that mortgage @ 4.2 ?
Last edited by 2Dogs; 03/23/23 07:35 PM.
"Why do you ask"?
Always vote the slowest path to socialism.
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Joined: Nov 2020
Posts: 1,381
8 point
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8 point
Joined: Nov 2020
Posts: 1,381 |
Interest payments are $'s you will never see again.
Pay off what asset has the highest rate first. Effective rate on the house is lower due to tax deductions, but married filing jointly standard deduction is so high I doubt that would even help you. If you itemize on your tax return, then yeah sure. I wouldn't simply go by what happened on your 2022 return, it's what you expect to do in 2023.
I suppose if your charitable contributions are high enough you could get there.
If worse comes to worse, that low of a house payment could be met by working at chick FIL a, so doomsday prep wouldn't be the deciding factor for me here.
Professional Smart Alec
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Joined: Nov 2020
Posts: 1,381
8 point
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8 point
Joined: Nov 2020
Posts: 1,381 |
Interest payments are $'s you will never see again.
Pay off what asset has the highest rate first. Effective rate on the house is lower due to tax deductions, but married filing jointly standard deduction is so high I doubt that would even help you. If you itemize on your tax return, then yeah sure. I wouldn't simply go by what happened on your 2022 return, it's what you expect to do in 2023.
I suppose if your charitable contributions are high enough you could get there.
If worse comes to worse, that low of a house payment could be met by working at chick FIL a, so doomsday prep wouldn't be the deciding factor for me here. This is also coming from the guy who wanted to buy hunting property instead of investment properties a week ago...(which, that property has now sold...figures) 😂😂
Professional Smart Alec
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Joined: Apr 2015
Posts: 5,588
12 point
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12 point
Joined: Apr 2015
Posts: 5,588 |
Nothing quite as satisfying as living in a paid for house.
What you do today, you have to sleep with tonight.
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Joined: Jul 2011
Posts: 39,582
Freak of Nature
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Freak of Nature
Joined: Jul 2011
Posts: 39,582 |
I'm one that has ALWAYS said to pay off debt as fast as you could, BUT what kind of interest could you get on your money if you put it into an interest bearing account right now? You might get as much interest on your money, as the rate is on the loans you have. If so, then keep your money and let it make money.
If my people, who are called by my name, will humble themselves and pray and seek my face and turn from their wicked ways, then will I hear from heaven and will forgive their sin and will heal their land. 2 Chronicles 7:14
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Joined: Jul 2013
Posts: 689
4 point
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4 point
Joined: Jul 2013
Posts: 689 |
I don’t mind carrying debt for an asset, especially an appreciating one, like a house.
Can’t same the same for something like a truck that is losing value each mile I drive it.
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Joined: Mar 2012
Posts: 4,460
10 point
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10 point
Joined: Mar 2012
Posts: 4,460 |
Y’all are slacking.
Definitely go with Hookers and Cocaine!
I ain't fightin nobody that swings around in trees with a running chainsaw like Tarzan. - FurFlyin
Oh I just thought u were a dumba$$ 🤣 my apologies… - jb20
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Joined: Nov 2013
Posts: 2,975
10 point
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10 point
Joined: Nov 2013
Posts: 2,975 |
I'm one that has ALWAYS said to pay off debt as fast as you could, BUT what kind of interest could you get on your money if you put it into an interest bearing account right now? You might get as much interest on your money, as the rate is on the loans you have. If so, then keep your money and let it make money. Fur, it's hard to argue against the debt vs interest numbers you mentioned but, in my opinion it's a lot easier to amass wealth when you have no debt period. I know in our case we made it a point to get the house paid off ASAP but, also at the same time we never carried auto, cc or any other debit, if we couldn't pay for it, we didn't buy it. For the record never heard of Dave Ramsey until we were 100% free but, we did a lot of his teaches.
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Joined: Feb 2011
Posts: 194
3 point
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3 point
Joined: Feb 2011
Posts: 194 |
I'm one that has ALWAYS said to pay off debt as fast as you could, BUT what kind of interest could you get on your money if you put it into an interest bearing account right now? You might get as much interest on your money, as the rate is on the loans you have. If so, then keep your money and let it make money. Fur, it's hard to argue against the debt vs interest numbers you mentioned but, in my opinion it's a lot easier to amass wealth when you have no debt period. I know in our case we made it a point to get the house paid off ASAP but, also at the same time we never carried auto, cc or any other debit, if we couldn't pay for it, we didn't buy it. For the record never heard of Dave Ramsey until we were 100% free but, we did a lot of his teaches. This! Ramsey did a fairly iron-clad study of millionaires-specifically how they achieve it. Out. Of 10,000 people in the study almost none did it through leveraging debt. Almost all got out of debt as soon as they could and began saving- living on less than they made. Having no debt and money in the bank is like no other feeling in the world.
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Joined: Aug 2001
Posts: 72,420 Likes: 21
GUVNER
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GUVNER
Joined: Aug 2001
Posts: 72,420 Likes: 21 |
One thing about getting the house done first is that if you suddenly drop dead she doesn't have to worry about losing the house.
However, right now, I would not be keeping too much cash in any bank account.
"Never Trust Government" -- Smart people.
"The Great thing we should Fear and the Weird Thing we Trust is Elon Musk" -- Me
"You can be broke but you cant be poor." -- Ruthie-May Webster
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Joined: Jun 2015
Posts: 14,393
Booner
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Booner
Joined: Jun 2015
Posts: 14,393 |
One thing about getting the house done first is that if you suddenly drop dead she doesn't have to worry about losing the house.
However, right now, I would not be keeping too much cash in any bank account. At a 40,000’ level the vast majority of Americans can’t cover a $1,000 emergency let alone they have greater than $250,000 in cash in a single account. The concern about banks for joeNjane citizen is nearly nonexistent. Folks are acting like a $54,0000/$730 mortgage is super high scary debt and is absolutely scandalous…like someone else mentioned could literally work at Chick Fil A and make the monthly payment and if death is a concern any decent life insurance policy would be enough to also pay off the house. Now if they owed $560,000 on a house and several other line items of debt that would be a different discussion. You’re not going to lose a house with cash in the bank/money market.
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Joined: May 2016
Posts: 1,562
8 point
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8 point
Joined: May 2016
Posts: 1,562 |
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Joined: Jul 2011
Posts: 37,676
Freak of Nature
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Freak of Nature
Joined: Jul 2011
Posts: 37,676 |
I'm one that has ALWAYS said to pay off debt as fast as you could, BUT what kind of interest could you get on your money if you put it into an interest bearing account right now? You might get as much interest on your money, as the rate is on the loans you have. If so, then keep your money and let it make money. Fur, it's hard to argue against the debt vs interest numbers you mentioned but, in my opinion it's a lot easier to amass wealth when you have no debt period. I know in our case we made it a point to get the house paid off ASAP but, also at the same time we never carried auto, cc or any other debit, if we couldn't pay for it, we didn't buy it. For the record never heard of Dave Ramsey until we were 100% free but, we did a lot of his teaches. I've never understood the fascination with Dave Ramsey . It's just common $ sense.
"Why do you ask"?
Always vote the slowest path to socialism.
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Joined: Aug 2001
Posts: 72,420 Likes: 21
GUVNER
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GUVNER
Joined: Aug 2001
Posts: 72,420 Likes: 21 |
I'm one that has ALWAYS said to pay off debt as fast as you could, BUT what kind of interest could you get on your money if you put it into an interest bearing account right now? You might get as much interest on your money, as the rate is on the loans you have. If so, then keep your money and let it make money. Fur, it's hard to argue against the debt vs interest numbers you mentioned but, in my opinion it's a lot easier to amass wealth when you have no debt period. I know in our case we made it a point to get the house paid off ASAP but, also at the same time we never carried auto, cc or any other debit, if we couldn't pay for it, we didn't buy it. For the record never heard of Dave Ramsey until we were 100% free but, we did a lot of his teaches. I've never understood the fascination with Dave Ramsey . It's just common $ sense. Yup. but people are generally stupid when it comes to money. I don't know how many times I heard people say that its a good thing to have a little debt.
"Never Trust Government" -- Smart people.
"The Great thing we should Fear and the Weird Thing we Trust is Elon Musk" -- Me
"You can be broke but you cant be poor." -- Ruthie-May Webster
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Joined: Apr 2010
Posts: 3,300
10 point
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10 point
Joined: Apr 2010
Posts: 3,300 |
I'm one that has ALWAYS said to pay off debt as fast as you could, BUT what kind of interest could you get on your money if you put it into an interest bearing account right now? You might get as much interest on your money, as the rate is on the loans you have. If so, then keep your money and let it make money. Fur, it's hard to argue against the debt vs interest numbers you mentioned but, in my opinion it's a lot easier to amass wealth when you have no debt period. I know in our case we made it a point to get the house paid off ASAP but, also at the same time we never carried auto, cc or any other debit, if we couldn't pay for it, we didn't buy it. For the record never heard of Dave Ramsey until we were 100% free but, we did a lot of his teaches. I've never understood the fascination with Dave Ramsey . It's just common $ sense. Common sense is not very common anymore
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Joined: Dec 2009
Posts: 9,375
14 point
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14 point
Joined: Dec 2009
Posts: 9,375 |
Mortgage interest is deductible. Auto loan interest is not. The home appreciates (most of the time) but vehicles historically do not. I would pay the vehicle off fitst
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