[quote=joec]I suppose I’m in the more have debt, manage it well camp…
I actually would like to refinance my mortgage just as I’m about to retire to get a large tax deduction to offset forced IRA withdrawals…You have to pay a certain amount of tax anyways so why not make that tax 0?
Course, it’s 1% adjustable 🙂 which none of us can get, but hey, I’m sure it’s still a hassle for some folks.
If you manage your money well, you’ll always have income in your life. Unfortunately, the USA always likes to tax income so having ways to make that 0 is a wise thing IMO.
Obviously, people should do what makes them feel the most comfortable, but I’d take minimizing taxes to 0 over “feeling more secure”.
Course, I don’t have money to pay stuff off so I don’t have this problem to actually have to choose.[/quote]
I don’t get the ‘pay interest to get a tax deduction’ argument. It’s a tax deduction, not a tax credit. So for every dollar you pay to the bank in interest, you get 28cents or so back in reduced taxes. Which means you are still out 72cents of each dollar. I’d like to keep that 72cents.
Arbitraging leveraged debt I understand… But not taking out a loan you don’t need just for the deduction.
Plus I plan on doing enough Roth conversions before I turn 70.5 in order to reduce my RMD tax worries.
