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November 9, 2007 at 6:42 AM in reply to: Payoff Mortgage in 1/3 the time without doing anything different? #97626
Raybyrnes
Participantfat_lazy_union
Tax wise you might want to see if your company offers a dependant care account which can reduce your taxable income. I believe the limit is 5K. If you and your wife are both working find see if one of you is over the SSI (around 97K) limit as it is that person who will see less value from the reduction.
The other area to look at is the Flex spending accounts. I have found these 2 things helpful with respect to lowering my taxes.
Last but not least consider getting your real estate licenses, insurance licenses, or any other license that allows you the ability to set up the shell for a small business. Or find a small business that you could run as a passive manager. This then provides you with a host of other tax deducitons.
November 9, 2007 at 6:42 AM in reply to: Payoff Mortgage in 1/3 the time without doing anything different? #97687Raybyrnes
Participantfat_lazy_union
Tax wise you might want to see if your company offers a dependant care account which can reduce your taxable income. I believe the limit is 5K. If you and your wife are both working find see if one of you is over the SSI (around 97K) limit as it is that person who will see less value from the reduction.
The other area to look at is the Flex spending accounts. I have found these 2 things helpful with respect to lowering my taxes.
Last but not least consider getting your real estate licenses, insurance licenses, or any other license that allows you the ability to set up the shell for a small business. Or find a small business that you could run as a passive manager. This then provides you with a host of other tax deducitons.
November 9, 2007 at 6:42 AM in reply to: Payoff Mortgage in 1/3 the time without doing anything different? #97698Raybyrnes
Participantfat_lazy_union
Tax wise you might want to see if your company offers a dependant care account which can reduce your taxable income. I believe the limit is 5K. If you and your wife are both working find see if one of you is over the SSI (around 97K) limit as it is that person who will see less value from the reduction.
The other area to look at is the Flex spending accounts. I have found these 2 things helpful with respect to lowering my taxes.
Last but not least consider getting your real estate licenses, insurance licenses, or any other license that allows you the ability to set up the shell for a small business. Or find a small business that you could run as a passive manager. This then provides you with a host of other tax deducitons.
November 9, 2007 at 6:42 AM in reply to: Payoff Mortgage in 1/3 the time without doing anything different? #97705Raybyrnes
Participantfat_lazy_union
Tax wise you might want to see if your company offers a dependant care account which can reduce your taxable income. I believe the limit is 5K. If you and your wife are both working find see if one of you is over the SSI (around 97K) limit as it is that person who will see less value from the reduction.
The other area to look at is the Flex spending accounts. I have found these 2 things helpful with respect to lowering my taxes.
Last but not least consider getting your real estate licenses, insurance licenses, or any other license that allows you the ability to set up the shell for a small business. Or find a small business that you could run as a passive manager. This then provides you with a host of other tax deducitons.
November 8, 2007 at 9:40 PM in reply to: Payoff Mortgage in 1/3 the time without doing anything different? #97557Raybyrnes
Participantfat_lazy_union
That’s the way I see it. THis strategy, as I see had more merit before electronic accounts. Now if you are computer literate you should be earning 5% or better by using a sweep account into a high yield money market account or 4% or better in your checking account. With these accounts your cash is never really dormant. Whether or not the immediate payment toward the MOrtgage of 6% or higher can offset by fees etc I don’t know. Additionally If all of my purchases are now going against my line of credit how does the tx deduciton play into that.
Again this is hurt by the fact that right now I use a variety of 0% credit card offers in conjunction with points, miles bonuses etc. SO this diminishes many of the potential advantages.
But here is the wild card. I study this stuff and pay attention to it. I proactively look for credit card offers, car loans, leasing rates etc. What if I were the average JOE who doesn’t do this. Could someone like this benefit from a well contructed cash mangement/ mmortgage management plan that had him paying down his debt and seeing the light at the end of the tunnel by paying down his mortage. Yeah, I could se some value to that.
Whether this is the most opportunistic way, that is the unknown. I would like to see some data or hear from someone using the system.
November 8, 2007 at 9:40 PM in reply to: Payoff Mortgage in 1/3 the time without doing anything different? #97619Raybyrnes
Participantfat_lazy_union
That’s the way I see it. THis strategy, as I see had more merit before electronic accounts. Now if you are computer literate you should be earning 5% or better by using a sweep account into a high yield money market account or 4% or better in your checking account. With these accounts your cash is never really dormant. Whether or not the immediate payment toward the MOrtgage of 6% or higher can offset by fees etc I don’t know. Additionally If all of my purchases are now going against my line of credit how does the tx deduciton play into that.
Again this is hurt by the fact that right now I use a variety of 0% credit card offers in conjunction with points, miles bonuses etc. SO this diminishes many of the potential advantages.
But here is the wild card. I study this stuff and pay attention to it. I proactively look for credit card offers, car loans, leasing rates etc. What if I were the average JOE who doesn’t do this. Could someone like this benefit from a well contructed cash mangement/ mmortgage management plan that had him paying down his debt and seeing the light at the end of the tunnel by paying down his mortage. Yeah, I could se some value to that.
Whether this is the most opportunistic way, that is the unknown. I would like to see some data or hear from someone using the system.
November 8, 2007 at 9:40 PM in reply to: Payoff Mortgage in 1/3 the time without doing anything different? #97630Raybyrnes
Participantfat_lazy_union
That’s the way I see it. THis strategy, as I see had more merit before electronic accounts. Now if you are computer literate you should be earning 5% or better by using a sweep account into a high yield money market account or 4% or better in your checking account. With these accounts your cash is never really dormant. Whether or not the immediate payment toward the MOrtgage of 6% or higher can offset by fees etc I don’t know. Additionally If all of my purchases are now going against my line of credit how does the tx deduciton play into that.
Again this is hurt by the fact that right now I use a variety of 0% credit card offers in conjunction with points, miles bonuses etc. SO this diminishes many of the potential advantages.
But here is the wild card. I study this stuff and pay attention to it. I proactively look for credit card offers, car loans, leasing rates etc. What if I were the average JOE who doesn’t do this. Could someone like this benefit from a well contructed cash mangement/ mmortgage management plan that had him paying down his debt and seeing the light at the end of the tunnel by paying down his mortage. Yeah, I could se some value to that.
Whether this is the most opportunistic way, that is the unknown. I would like to see some data or hear from someone using the system.
November 8, 2007 at 9:40 PM in reply to: Payoff Mortgage in 1/3 the time without doing anything different? #97636Raybyrnes
Participantfat_lazy_union
That’s the way I see it. THis strategy, as I see had more merit before electronic accounts. Now if you are computer literate you should be earning 5% or better by using a sweep account into a high yield money market account or 4% or better in your checking account. With these accounts your cash is never really dormant. Whether or not the immediate payment toward the MOrtgage of 6% or higher can offset by fees etc I don’t know. Additionally If all of my purchases are now going against my line of credit how does the tx deduciton play into that.
Again this is hurt by the fact that right now I use a variety of 0% credit card offers in conjunction with points, miles bonuses etc. SO this diminishes many of the potential advantages.
But here is the wild card. I study this stuff and pay attention to it. I proactively look for credit card offers, car loans, leasing rates etc. What if I were the average JOE who doesn’t do this. Could someone like this benefit from a well contructed cash mangement/ mmortgage management plan that had him paying down his debt and seeing the light at the end of the tunnel by paying down his mortage. Yeah, I could se some value to that.
Whether this is the most opportunistic way, that is the unknown. I would like to see some data or hear from someone using the system.
November 8, 2007 at 5:36 PM in reply to: Payoff Mortgage in 1/3 the time without doing anything different? #97492Raybyrnes
Participantucodegen
You pay 6% on 300000 K average outstanding balance for 30 days. 18000
If I pay 7 % on my money but I lower the outstanding balance to 250000 I can have a higher rate and lower my overall cost. 17500
End of story. If you don’t like the math don’t play the game. Go look up averge outstanding balance in a Finance textbook and then come post.
The whole premise of this program was to truly eliminate all other forms of credit. All monthly purchases go against the LOC. This would mean credit card debts, car payments, everything. So yes all cashflows need to be accouted for.
As for costs. If you don’t recognise opportunity cost uield positive or negative outcome, again pick up any basic finance or accounting texbook and they will cover that for you.
November 8, 2007 at 5:36 PM in reply to: Payoff Mortgage in 1/3 the time without doing anything different? #97555Raybyrnes
Participantucodegen
You pay 6% on 300000 K average outstanding balance for 30 days. 18000
If I pay 7 % on my money but I lower the outstanding balance to 250000 I can have a higher rate and lower my overall cost. 17500
End of story. If you don’t like the math don’t play the game. Go look up averge outstanding balance in a Finance textbook and then come post.
The whole premise of this program was to truly eliminate all other forms of credit. All monthly purchases go against the LOC. This would mean credit card debts, car payments, everything. So yes all cashflows need to be accouted for.
As for costs. If you don’t recognise opportunity cost uield positive or negative outcome, again pick up any basic finance or accounting texbook and they will cover that for you.
November 8, 2007 at 5:36 PM in reply to: Payoff Mortgage in 1/3 the time without doing anything different? #97566Raybyrnes
Participantucodegen
You pay 6% on 300000 K average outstanding balance for 30 days. 18000
If I pay 7 % on my money but I lower the outstanding balance to 250000 I can have a higher rate and lower my overall cost. 17500
End of story. If you don’t like the math don’t play the game. Go look up averge outstanding balance in a Finance textbook and then come post.
The whole premise of this program was to truly eliminate all other forms of credit. All monthly purchases go against the LOC. This would mean credit card debts, car payments, everything. So yes all cashflows need to be accouted for.
As for costs. If you don’t recognise opportunity cost uield positive or negative outcome, again pick up any basic finance or accounting texbook and they will cover that for you.
November 8, 2007 at 5:36 PM in reply to: Payoff Mortgage in 1/3 the time without doing anything different? #97572Raybyrnes
Participantucodegen
You pay 6% on 300000 K average outstanding balance for 30 days. 18000
If I pay 7 % on my money but I lower the outstanding balance to 250000 I can have a higher rate and lower my overall cost. 17500
End of story. If you don’t like the math don’t play the game. Go look up averge outstanding balance in a Finance textbook and then come post.
The whole premise of this program was to truly eliminate all other forms of credit. All monthly purchases go against the LOC. This would mean credit card debts, car payments, everything. So yes all cashflows need to be accouted for.
As for costs. If you don’t recognise opportunity cost uield positive or negative outcome, again pick up any basic finance or accounting texbook and they will cover that for you.
November 8, 2007 at 9:03 AM in reply to: Payoff Mortgage in 1/3 the time without doing anything different? #97280Raybyrnes
Participantucodegen
“HELOCs don’t have a positive yield.. they have a cost. You get charged the interest… it is not paid to you. The interest rate charged on an HELOC is higher than a standard mortgage.”
This analyis is biased and not universally true. If I am an investor and have a brokerage account that offers me a a margin rate then relative to the HELOC the heloc is a saving and not an expense.
If I am comparing it to a fixed rate mortgage taken out 3 or 4 yers ago then it is an expense. You are viewing this thing in a vacuum and not considering the big picture. To me that leaves your mindset closed off and gives 0 credibility to your analysys. Your are going to defend your point to the very end even if information is contrary to your point.
I am in the camp of most of the posters her ethat sure their might be some ability of this working for you but that I could probably manage this on my own without Accelerator program.
November 8, 2007 at 9:03 AM in reply to: Payoff Mortgage in 1/3 the time without doing anything different? #97343Raybyrnes
Participantucodegen
“HELOCs don’t have a positive yield.. they have a cost. You get charged the interest… it is not paid to you. The interest rate charged on an HELOC is higher than a standard mortgage.”
This analyis is biased and not universally true. If I am an investor and have a brokerage account that offers me a a margin rate then relative to the HELOC the heloc is a saving and not an expense.
If I am comparing it to a fixed rate mortgage taken out 3 or 4 yers ago then it is an expense. You are viewing this thing in a vacuum and not considering the big picture. To me that leaves your mindset closed off and gives 0 credibility to your analysys. Your are going to defend your point to the very end even if information is contrary to your point.
I am in the camp of most of the posters her ethat sure their might be some ability of this working for you but that I could probably manage this on my own without Accelerator program.
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