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sdcellar
ParticipantRaybyrnes–
You mean me? I’m the short sighted one? You make beating a rate of return sound easy. And what is this liquidity you speak of? Cash is liquid, investments are not–at least not ones that earn 10% or more, nor a plain old 5.1% CD.
ParticipantAhh, you missed my use of the word “effectively” when I posed the question. Sorry, but I laid the trap intentionally…
I hear what you’re saying about not being able to save money otherwise, but I worked the math on your example (including tax considerations using a 28% marginal tax rate) and you made a whopping 55 dollars and 91 cents.
Might I suggest you join Vons Club or something similar instead as a better way to save/earn money.
Clearly, you’re admitting that it might not have worked out as you as hoped, so I give you full credit for the courage to do so.
ParticipantAhh, you missed my use of the word “effectively” when I posed the question. Sorry, but I laid the trap intentionally…
I hear what you’re saying about not being able to save money otherwise, but I worked the math on your example (including tax considerations using a 28% marginal tax rate) and you made a whopping 55 dollars and 91 cents.
Might I suggest you join Vons Club or something similar instead as a better way to save/earn money.
Clearly, you’re admitting that it might not have worked out as you as hoped, so I give you full credit for the courage to do so.
ParticipantAlso, you point out the tax on earnings, but I think the math helps: 5%*.65 = 3.25%.
I can’t believe I let this go because we’re back to losing money with our bitchin’ HELOC. So, as you point out, I can’t really make money until my return on cash gets higher.
ParticipantAlso, you point out the tax on earnings, but I think the math helps: 5%*.65 = 3.25%.
I can’t believe I let this go because we’re back to losing money with our bitchin’ HELOC. So, as you point out, I can’t really make money until my return on cash gets higher.
ParticipantYes, if you’re in one of the highest tax brackets *and* you’re completely disciplined, you’ll be making interest margin on your money–key word being margin.
There’s gots to be better ways to make your money work for you…
But hey, maybe that’s just me. Anybody here (or anybody you know) effectively working the system this way?
ParticipantYes, if you’re in one of the highest tax brackets *and* you’re completely disciplined, you’ll be making interest margin on your money–key word being margin.
There’s gots to be better ways to make your money work for you…
But hey, maybe that’s just me. Anybody here (or anybody you know) effectively working the system this way?
ParticipantOkay, so it’s a week later, but I’m missing the part where hammer “loves” this place. Clearly, he wants to buy it, but once in a lifetime (or even 5-year) opportunity?
His words: The home is old but liveable. New paint and windows, but the layout is tired. Poor closets, Jack and Jill bedrooms etc. Seen one, seen them all.
I really do get the “there is more to home ownership than simple economics” point, but folks are going on in this thread like he described his dream home, so why not buy it.
I’ll tell you why. It’s because he’d be “settling” to the tune of $1.1 million, otherwise…
hammer– If you still want to buy it (or have), and you’re comfortable with that, then I’d say you are indeed doing the right thing.
ParticipantOkay, so it’s a week later, but I’m missing the part where hammer “loves” this place. Clearly, he wants to buy it, but once in a lifetime (or even 5-year) opportunity?
His words: The home is old but liveable. New paint and windows, but the layout is tired. Poor closets, Jack and Jill bedrooms etc. Seen one, seen them all.
I really do get the “there is more to home ownership than simple economics” point, but folks are going on in this thread like he described his dream home, so why not buy it.
I’ll tell you why. It’s because he’d be “settling” to the tune of $1.1 million, otherwise…
hammer– If you still want to buy it (or have), and you’re comfortable with that, then I’d say you are indeed doing the right thing.
ParticipantWhen I say westside, I’m referring to Torrey Highlands (at least roughly). I probably shouldn’t have used the term as I’ve never heard anyone refer to it that way…
ParticipantWhen I say westside, I’m referring to Torrey Highlands (at least roughly). I probably shouldn’t have used the term as I’ve never heard anyone refer to it that way…
Participantsdr– Oh, I get the concept completely. It’s just totally foreign to me *why* I would want to get myself into such a debt position (especially in this undeniably uncertain market).
I struggle with things like 100% loans and sucking “equity” beyond that. Admittedly, this is perhaps a naive and even growth-limiting perspective in a booming market. But the alternative simply seems idiotic and perhaps even self-desctructive in a declining one.
Participantsdr– Oh, I get the concept completely. It’s just totally foreign to me *why* I would want to get myself into such a debt position (especially in this undeniably uncertain market).
I struggle with things like 100% loans and sucking “equity” beyond that. Admittedly, this is perhaps a naive and even growth-limiting perspective in a booming market. But the alternative simply seems idiotic and perhaps even self-desctructive in a declining one.
ParticipantI believe that on the westside/newer/more expensive part of PQ that the kids will actually attend Westview. Still Poway Schools, but brand new and very nice.
You’ll be able to find a $600K 4BR over there, you’ll just have to pay more in Mello-Roos. That’s right now of course, if you wait a bit longer, it should get cheaper (at least that’s what most of us here think, right?)
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