It comes out to be about It comes out to be about +$700/month.
briansd1
August 28, 2010 @
12:06 PM
flu wrote:It comes out to be [quote=flu]It comes out to be about +$700/month.[/quote]
$700/month in your pocket thanks to government intervention. Not bad. 🙂
Coronita
August 28, 2010 @
12:18 PM
briansd1 wrote:flu wrote:It [quote=briansd1][quote=flu]It comes out to be about +$700/month.[/quote]
$700/month in your pocket thanks to government intervention. Not bad. :)[/quote]
Yup, I have to say.. If you can’t beat them, join them.
I’m going to be milking everything I can out of these bailouts.
$700/month. Maybe I can go pick up a 1/1 somewhere.
AK
August 28, 2010 @
9:46 AM
Throw a party for your fellow Throw a party for your fellow Piggs.
UCGal
August 28, 2010 @
10:06 AM
I voted pay extra I voted pay extra principal… but that’s because that’s what I’m doing.
The other choice that appeals to me is the put it in your kids’ college fund.
It depends on your long term goals and comfort with debt… I know I’m not typical – but I really want to be 100% debt free. Even if inflation happens – having NO mortgage payment is a nice place to be.
carlsbadworker
August 28, 2010 @
1:06 PM
“Save the extra money in “Save the extra money in cash, when inflation kicks in, you’ll be kicking yourself for paying the loan off early”
What? If inflation kicks in, how can you not be kicking yourself if you put the extra money in cash. You want to be in cash only for deflationary scenario, otherwise you lose.
Coronita
August 28, 2010 @
1:14 PM
carlsbadworker wrote:”Save [quote=carlsbadworker]”Save the extra money in cash, when inflation kicks in, you’ll be kicking yourself for paying the loan off early”
What? If inflation kicks in, how can you not be kicking yourself if you put the extra money in cash. You want to be in cash only for deflationary scenario, otherwise you lose.[/quote]
If inflation kicks in, wouldn’t it be dumber pay off your mortgage earlier? Afterall, the mortgage rate is fixed…So wouldn’t present day dollar be worth more than future dollar?
I was thinking hypothetically, if I instead of pay the mortgage off earlier, that same amount could be kept on the side so that as rates creep up, so would the investment returns investing in present day rates at that time. Surely, something has be able to beat 3.75% in the future?
SK in CV
August 28, 2010 @
1:31 PM
flu wrote:carlsbadworker [quote=flu][quote=carlsbadworker]”Save the extra money in cash, when inflation kicks in, you’ll be kicking yourself for paying the loan off early”
What? If inflation kicks in, how can you not be kicking yourself if you put the extra money in cash. You want to be in cash only for deflationary scenario, otherwise you lose.[/quote]
If inflation kicks in, wouldn’t it be dumber pay off your mortgage earlier? Afterall, the mortgage rate is fixed…So wouldn’t present day dollar be worth more than future dollar?
I was thinking hypothetically, if I instead of pay the mortgage off earlier, that same amount could be kept on the side so that as rates creep up, so would the investment returns investing in present day rates at that time. Surely, something has be able to beat 3.75% in the future?[/quote]
You’re both right. If inflation kicks in, you don’t want to have paid it down on your mortgage. But you also don’t want to hold it in cash. Inflation depreciates the value of cash. You want the cash AVAILABLE if big time inflation kicks in, so you can invest it in “stuff”. You want something other than dollars. You already own the house, so investing more in the house (by paying off the mortgage faster) doesn’t increase your net worth, it’s essentially the same as holding cash during an inflationary period. Stocks in companies which are highly leveraged, those with big inventories with slower turnover, and the type of sales which keep pace with inflation would be good choices. Possibly additional real estate (or investments in RE companies) MIGHT be a good choice. (RE sometimes doesn’t “inflate” on the same schedule as other stuff.)
sreeb
August 28, 2010 @
2:19 PM
Do the responsible thing and Do the responsible thing and do what you can for your country. Use the savings for the down payment on a lease for a new Cadillac Escalade and help save the economy.
desmond
August 28, 2010 @
2:43 PM
I would try to invest it to I would try to invest it to make up for all the previous interest you were paying.
HLS
August 28, 2010 @
5:37 PM
FLU..
I think that you said FLU..
I think that you said your rate was 3.75% ?
Your payment is $3058 (for 180 months).
If you add $700 to your payment EVERY month, you will pay the loan off in 11.5 years.
This will relieve you of having to make 42 payments of $3058, saving you $128,436 in future payments.
The cost to do this will be 138 payments of $700 or $96,600 (over 11.5 years)
You will earn a guaranteed compounded tax-free return of 3.75%
**Is this a worthwhile return to you ??
At today’s rates you cannot earn that type of return guaranteed anyplace else.
CD’s would probably have to be above 6% to equal the net return.
Over the last decade it was probably better to pay down a mortgage with after tax dollars than put pre-tax money into a 401K….
**Past performance is no guarantee of future results** 🙂
bearishgurl
August 28, 2010 @
6:05 PM
Excellent post, HLS :=) Excellent post, HLS :=)
SK in CV
August 28, 2010 @
7:17 PM
Just one little quibble with Just one little quibble with this:
[quote=HLS]You will earn a guaranteed compounded tax-free return of 3.75%
**Is this a worthwhile return to you ??
[/quote]
It will be better than guaranteed. It won’t, however, be tax free. Paying the interest is tax-deductible, so not paying it would not be tax free.
HLS
August 28, 2010 @
10:02 PM
HLS wrote:You will earn a [quote=HLS]You will earn a guaranteed compounded tax-free return of 3.75%
[/quote]
It won’t, however, be tax free. Paying the interest is tax-deductible, so not paying it would not be tax free…
SK..
Perhaps I didn’t explain it clearly. The compound return IS tax free compared to earning 3.75% on a CD but having to pay income tax on the interest earned. The power of compounding is the major benefit.
Interest expense is not 100% reduction dollar for dollar.
Paying $1 in interest to save 30c in taxes still costs you 70c
I still see it as a tax free return.
Not everyone needs/can use the deduction.
Contact your tax advisor for a detailed analysis.
If you are a tax advisor I’d be happy to discuss this with you!
SK in CV
August 28, 2010 @
11:50 PM
HLS wrote: Interest expense [quote=HLS] Interest expense is not 100% reduction dollar for dollar.
Paying $1 in interest to save 30c in taxes still costs you 70c
I still see it as a tax free return.
Not everyone needs/can use the deduction.
Contact your tax advisor for a detailed analysis.
If you are a tax advisor I’d be happy to discuss this with you![/quote]
You are correct that the expense is not dollar for dollar tax reduction. It’s at whatever the borrower’s marginal tax rate is. Exactly the same as NOT having the interest deduction will cost.
(There may be some minor differences between the tax cost of interest income and the tax benefit of an interest deduction, particularly in some income ranges, but those differences are usually slight. Less than 1% of the interest saved.)
The key part of the analysis here is what the alternative investment will be. If it will be some very low risk fixed income investment, like government bonds or insured CD’s, then it’s comparing the interest rates on the income vehicle v. the rate on the loan. If the interest rate is the same, I usually recommend to NOT pay off the loan, and retain the flexibility of having an asset that can be turned into cash easier than reborrowing the money in an emergency. I’ve been through the analysis dozens of times, and the tax difference is minimal. When interest rates were higher, paying off a 7% loan was a guaranteed 7% return, better than most all very low risk alternative investments. Now, with interest rates so low, the flexibility all by itself is a pretty strong incentive to not pay off the loan.
(And yes, I am technically still a tax advisor, though I’m trying hard to make my clients go away. 20 years was long enough, so I quit. Kind of. That was 10 years ago.)
CA renter
August 29, 2010 @
2:41 AM
$250 toward mortgage $250 toward mortgage principal
$250 toward college savings
$200 toward savings/investments/retirement
Or, just do what HLS said. 🙂
kicksavedave
August 29, 2010 @
8:05 AM
I’d buy that 1/1 you talked I’d buy that 1/1 you talked about and become an evil slumlord.
Seriously though, real estate investing is a relatively inflation proof vehicle. And unless your timing is horrendous, over a long enough length of time it will appreciate well enough to beat most other investments. By that I mean if you have a 100K house that appreciates to a $150K house over a a 20 year period, while that measly 2% ROR might not beat other investments, keeping in mind that someone else (tenants) financed that return for you, it wins. You end up with $150K for virtually nothing paid into it, say your $30K down payment. That ROR is ~8%. If inflation runs rampant you win even more. Of course there are expenses that pop up like that 2 months planned vacancy factor, but there are also deductions that offset a lot of that.
If housing bubbles again at any time in the next 20 years, or simply appreciates over 20 years at a better than 2 % rate, you win more. Higher ROR at the end and higher rents over term, yay!
The risk is if RE deflates tremendously over that long a period of time, and that is a relatively low risk. Even still, if that $100K house is worth $90K in 20 years, you have $90K with virtually nothing paid into it, so its not a real “loss” its just a smaller return. Lets say you put $30K down on that $100K 1/1, and in 20 years its worth only $90K. If you assume rent/mortgage neutral over that time, you still end up with just over 5% return. For RE to be that bad off over 20 years, imagine what your ROR will be in the stock market?
One other thing, with rates so low right now, paying down that mtg is not where I’d go. I’d look for a way to take advantage of those low rates by borrowing more. That 1/1 will be even more nice over time if your rate on it is low. If rates are high then paying down the principal and saving interest is the right play. Not with rates like 3.5% which is what I thought you were at.
Or, just put it all into a “monthly” Pigg Party 🙂
briansd1
August 29, 2010 @
9:41 AM
kicksavedave wrote:I’d buy [quote=kicksavedave]I’d buy that 1/1 you talked about and become an evil slumlord. [/quote]
Not a bad idea.
How about a condo in a college town where you children will go to college?
Depending on the college town, it might be a good buy.
bearishgurl
August 29, 2010 @
10:57 AM
briansd1 wrote:How about a [quote=briansd1]How about a condo in a college town where you children will go to college?
Depending on the college town, it might be a good buy.[/quote]
Brian, I’ve often thought of this. I’ve known agents in S. Bay (SD) who have purchased condos near UCSD for their children to live in (local students DO commute from S. Bay to UCSD daily but this can be problematic).
However, these agents purchased 2/2’s or 3/2.5’s so that they could collect rent from roommates (or parents of roommates) to defray their PITI. It ends up to be much cheaper than a dorm for their own student and the possibility exists that they could fix it up a little and sell it for a profit when their last kid is finished using it. Of course, between college kids (or if one of your kids isn’t accepted there), it would have to be rented to other students in the interim.
I think this can be a good investment for a parent of college-aged kids, if purchased at the right price.
sdrealtor
August 29, 2010 @
11:31 AM
I voted for the car. I know I voted for the car. I know you love cars and beleive it would make you the happiest of those other choices. You seem to have everything else take care of so live a little;)
joec
August 29, 2010 @
2:45 PM
sdrealtor wrote:I voted for [quote=sdrealtor]I voted for the car. I know you love cars and beleive it would make you the happiest of those other choices. You seem to have everything else take care of so live a little;)[/quote]
So did I. I tried to find the thread, but I “thought” you were into cars so if you have everything taken care of, feel free to splurge. Your retirement is max, job is safe, housing covered, nothing wrong with driving something you actually enjoy.
Maybe take it to some road courses as well or sign up for some track time…Great fun.
SK in CV
August 29, 2010 @
12:07 PM
Timing is Timing is everything.
[quote=bearishgurl]
Brian, I’ve often thought of this. I’ve known agents in S. Bay (SD) who have purchased condos near UCSD for their children to live in (local students DO commute from S. Bay to UCSD daily but this can be problematic).
However, these agents purchased 2/2’s or 3/2.5’s so that they could collect rent from roommates (or parents of roommates) to defray their PITI. It ends up to be much cheaper than a dorm for their own student and the possibility exists that they could fix it up a little and sell it for a profit when their last kid is finished using it. Of course, between college kids (or if one of your kids isn’t accepted there), it would have to be rented to other students in the interim.
I think this can be a good investment for a parent of college-aged kids, if purchased at the right price.[/quote]
My daughter just finished school there. After her freshman year, her friend’s grandmother thought that very same thing. So she bought a 2+/2, her grandaughter had one BR, my daughter had the other and paid rent. I have no idea what the cash flow was because I have no idea what her financing was.
But I do know she’s lost a ton of money. She paid over and $600K. There are comparable units listed now for under $400K. Worked out to be a great investment. For me. I only paid rent during the school year, and my daughter got her apartment back each september. Not so much for grandma.
Given what the rents in the area are, I’m not sure it’s a very good investment even now that prices have come way way down.
bearishgurl
August 29, 2010 @
12:36 PM
SK in CV wrote:Timing is [quote=SK in CV]Timing is everything.
[quote=bearishgurl] . . . I think this can be a good investment for a parent of college-aged kids, if purchased at the right price.[/quote]
My daughter just finished school there. After her freshman year, her friend’s grandmother thought that very same thing. So she bought a 2+/2, her grandaughter had one BR, my daughter had the other and paid rent. I have no idea what the cash flow was because I have no idea what her financing was.
But I do know she’s lost a ton of money. She paid over and $600K. There are comparable units listed now for under $400K. Worked out to be a great investment. For me. I only paid rent during the school year, and my daughter got her apartment back each september. Not so much for grandma.
Given what the rents in the area are, I’m not sure it’s a very good investment even now that prices have come way way down.[/quote](emphasis added)
Yes, SK, you are quite right in that timing is everything. For example, agents I am speaking of purchased in ’91 – ’92. One purchased a 3/2.5 in a complex near Univ. Town Square for approx. $172K. Another purchased a 2/2 in a nice complex on the west end of Fashion Valley (2 children attending USD, staggered) for $156K, I believe. The FV complex was actually a lot nicer than the UTC complex and the UTC unit needed work before it could be occupied, but had a garage. The FV complex had underground pkg. I have no idea if the agent who purchased the UCSD unit still owns it but the agent who purchased the FV unit sold it in 2000, when her kids no longer needed it and she made a good profit on it.
For the life of me, many of the complexes close to UCSD are older with many units needing rehab. I CAN’T imagine they EVER sold for $600K or are are getting even close $400K now. I believe your “grandmother” story (above) but find those prices ridiculous. Did “grandmother” purchase in a *newer* construction complex? Obviously, she paid too much for the unit.
SK in CV
August 29, 2010 @
1:43 PM
bearishgurl wrote:
For the [quote=bearishgurl]
For the life of me, many of the complexes close to UCSD are older with many units needing rehab. I CAN’T imagine they EVER sold for $600K or are are getting even close $400K now. I believe your “grandmother” story (above) but find those prices ridiculous. Did “grandmother” purchase in a *newer* construction complex? Obviously, she paid too much for the unit.[/quote]
Brand new unit at Regents. Very nice complex. It was way above what most students were living in when the girls first moved in. Now there are a lot of students there. I thought it was going to be a bad investment when she first bought it. It has an extra den, which she decorated as a 3rd bedroom, so she could come down and visit her grand-daughter a few times a year. Seemed silly, what college age girl is going to want grandma visiting regularly? I think she ended up coming down for one long weekend each school year, and a few times during the summers.
Her timing and selection of the complex and unit she bought couldn’t have been worse. Financially, the perfect example of how not to buy. But I do hope my daughter can find similar housing when she goes off to grad school. Time for her to start making friends with women with rich grandmothers.
bearishgurl
August 29, 2010 @
3:23 PM
SK in CV wrote: . . . Her [quote=SK in CV] . . . Her timing and selection of the complex and unit she bought couldn’t have been worse. Financially, the perfect example of how not to buy. But I do hope my daughter can find similar housing when she goes off to grad school. Time for her to start making friends with women with rich grandmothers.[/quote]
Congratulations on your daughter’s successful graduation from UCSD! This is no easy feat what with all the current budget cuts (read: instructor layoffs) at the undergrad level.
SK in CV
August 29, 2010 @
7:42 PM
bearishgurl [quote=bearishgurl]
Congratulations on your daughter’s successful graduation from UCSD! This is no easy feat what with all the current budget cuts (read: instructor layoffs) at the undergrad level.[/quote]
Thank you. All she did was study, graduate with honors, and soon will be off to med school. I PAID for it!
briansd1
August 29, 2010 @
10:16 PM
SK in CV wrote:
Brand new [quote=SK in CV]
Brand new unit at Regents. Very nice complex. It was way above what most students were living in when the girls first moved in. Now there are a lot of students there. I thought it was going to be a bad investment when she first bought it. It has an extra den, which she decorated as a 3rd bedroom, so she could come down and visit her grand-daughter a few times a year. Seemed silly, what college age girl is going to want grandma visiting regularly? I think she ended up coming down for one long weekend each school year, and a few times during the summers.
Her timing and selection of the complex and unit she bought couldn’t have been worse. Financially, the perfect example of how not to buy. But I do hope my daughter can find similar housing when she goes off to grad school. Time for her to start making friends with women with rich grandmothers.[/quote]
Your daughter is lucky to have a generous grandmother.
This is an apartment conversion project but a pretty nice one, especially for students.
It was an unfortunate purchase at the peak, for sure.
bearishgurl wrote:
I think [quote=bearishgurl]
I think this can be a good investment for a parent of college-aged kids, if purchased at the right price.[/quote]
I wouldn’t buy in San Diego.
But there are plenty of college towns across America. That said, I would only buy where I want to visit frequently.
I bought a place in Philly and rent it to my friend. She has a roommate who’s a grad student. It’s a 3-bedroom, so there’s still one bedroom if she wants another roommate. It works out pretty well for them; and I have my costs covered.
Time will tell how it works out long term.
Coronita
August 29, 2010 @
10:25 PM
briansd1 wrote:kicksavedave [quote=briansd1][quote=kicksavedave]I’d buy that 1/1 you talked about and become an evil slumlord. [/quote]
Not a bad idea.
How about a condo in a college town where you children will go to college?
Depending on the college town, it might be a good buy.[/quote]
Brian, I would think that would be good idea, except that being that she’s 4, it’s a long way to go. What if she doesn’t go to college? Ok, unlikely. But what if she ends up like me and goes to a college in the middle of nowhere. My choices for excitement in school, was either getting drunk @ west campus, being a geek @ north campus, or almost getting sent to the JA for illegally skating on a frozen lakes. I double checked the area near my old school, and even during the RE bubble, it was one of the few places that saw NO appreciation (LOL).
Aecetia
August 30, 2010 @
10:12 AM
Consider precious metal Consider precious metal investment, probably silver since it is lower priced. Check this rumor out:
“It gets scarier vis-a-vis prospects of US bonds: ‘The rumors appear to have started following reports on Aug. 28 which cited Ming Pao, a Hong Kong-based news agency, saying that because of an approximately $430 billion loss on U.S. Treasury bonds, the Chinese government may punish some individuals within the PBC, including Zhou.'”
HLS wrote:FLU..
I think that [quote=HLS]FLU..
I think that you said your rate was 3.75% ?
Your payment is $3058 (for 180 months).
If you add $700 to your payment EVERY month, you will pay the loan off in 11.5 years.
This will relieve you of having to make 42 payments of $3058, saving you $128,436 in future payments.
The cost to do this will be 138 payments of $700 or $96,600 (over 11.5 years)
You will earn a guaranteed compounded tax-free return of 3.75%
**Is this a worthwhile return to you ??
At today’s rates you cannot earn that type of return guaranteed anyplace else.
CD’s would probably have to be above 6% to equal the net return.
Over the last decade it was probably better to pay down a mortgage with after tax dollars than put pre-tax money into a 401K….
**Past performance is no guarantee of future results** :-)[/quote]
Hmm….11.5 years. That is interesting…Thanks!
I wondering what will happen in 11.5 years…(At the rates these bailouts are going, perhaps we’ll still be debating whether it’s a good time to buy :))
bearishgurl
August 29, 2010 @
12:39 PM
flu, I think you should put flu, I think you should put your mtg. savings away for a “rainier” day and take a little out to go on family vacations now and then :=)
desmond
August 3, 2011 @
6:04 PM
Hey flu,
What did you do with Hey flu,
What did you do with the savings? And did you refi after this one?
Coronita
August 3, 2011 @
7:30 PM
desmond wrote:Hey flu,
What [quote=desmond]Hey flu,
What did you do with the savings? And did you refi after this one?[/quote]
Bought stocks and got lucky, which then I used to buy a 550 for my dad when he uses when he’s down here in S.D. Otherwise, it just sits in my garage…Or at least in theory. Can’t really resist the twin turbo v8. Dinan chip goes in soon…Really soon.
I haven’t refi’ed yet. But I’m tempting to again because the rates are falling again.
desmond
August 3, 2011 @
8:28 PM
Awesome, that kind of power Awesome, that kind of power is out of my league.
CA renter
August 4, 2011 @
2:48 AM
flu wrote:desmond wrote:Hey [quote=flu][quote=desmond]Hey flu,
What did you do with the savings? And did you refi after this one?[/quote]
Bought stocks and got lucky, which then I used to buy a 550 for my dad when he uses when he’s down here in S.D. Otherwise, it just sits in my garage…Or at least in theory. Can’t really resist the twin turbo v8. Dinan chip goes in soon…Really soon.
I haven’t refi’ed yet. But I’m tempting to again because the rates are falling again.[/quote]
Dang, you’re a nice son! 🙂
eavesdropper
August 4, 2011 @
6:42 AM
CA renter wrote:flu [quote=CA renter][quote=flu][quote=desmond]Hey flu,
What did you do with the savings? And did you refi after this one?[/quote]
Bought stocks and got lucky, which then I used to buy a 550 for my dad when he uses when he’s down here in S.D. Otherwise, it just sits in my garage…Or at least in theory. Can’t really resist the twin turbo v8. Dinan chip goes in soon…Really soon.
I haven’t refi’ed yet. But I’m tempting to again because the rates are falling again.[/quote]
Dang, you’re a nice son! :)[/quote]
CAR, you get sucked in so easily.
I’ll bet he spent it all on online porn and beef jerky.
sdrealtor
August 4, 2011 @
9:28 AM
eavesdropper wrote:CA renter [quote=eavesdropper][quote=CA renter][quote=flu][quote=desmond]Hey flu,
What did you do with the savings? And did you refi after this one?[/quote]
Bought stocks and got lucky, which then I used to buy a 550 for my dad when he uses when he’s down here in S.D. Otherwise, it just sits in my garage…Or at least in theory. Can’t really resist the twin turbo v8. Dinan chip goes in soon…Really soon.
I haven’t refi’ed yet. But I’m tempting to again because the rates are falling again.[/quote]
Dang, you’re a nice son! :)[/quote]
CAR, you get sucked in so easily.
I’ll bet he spent it all on online porn and beef jerky.[/quote]
He bought the car. I’ve seen the car
Coronita
August 4, 2011 @
9:48 AM
sdrealtor wrote:eavesdropper [quote=sdrealtor][quote=eavesdropper][quote=CA renter][quote=flu][quote=desmond]Hey flu,
What did you do with the savings? And did you refi after this one?[/quote]
Bought stocks and got lucky, which then I used to buy a 550 for my dad when he uses when he’s down here in S.D. Otherwise, it just sits in my garage…Or at least in theory. Can’t really resist the twin turbo v8. Dinan chip goes in soon…Really soon.
I haven’t refi’ed yet. But I’m tempting to again because the rates are falling again.[/quote]
Dang, you’re a nice son! :)[/quote]
CAR, you get sucked in so easily.
I’ll bet he spent it all on online porn and beef jerky.[/quote]
He bought the car. I’ve seen the car[/quote]
Yes, but I run online pXrn and beef jerky businesses too 🙂
But hey, really this doesn’t matter.
Health is key here…Some of you folks worry about the economy…Trust me, a lot of more sh1t can go wrong…So like i said, good health folks! Can’t take this shit with you when you go.
an
August 4, 2011 @
10:04 AM
flu wrote:Yes, but I run [quote=flu]Yes, but I run online pXrn and beef jerky businesses too 🙂
But hey, really this doesn’t matter.
Health is key here…Some of you folks worry about the economy…Trust me, a lot of more sh1t can go wrong…So like i said, good health folks! Can’t take this shit with you when you go.[/quote]
I’d add in time as well. Doesn’t matter if you’re rich or poor, time marches on and you can’t get it back.
BoomerAang
August 4, 2011 @
4:46 PM
You guys are making me feel You guys are making me feel old… i haven’t even hit 30 yet…but i agree with spending it on memorable things to make life worthwhile…
an
August 4, 2011 @
5:28 PM
BoomerAang wrote:You guys are [quote=BoomerAang]You guys are making me feel old… i haven’t even hit 30 yet…but i agree with spending it on memorable things to make life worthwhile…[/quote]
How can you feel old when you’re probably one of the youngest on here. I feel like a baby to some on this board when they talk about the 70s. But yes, I totally agree that spending it on memorable things makes your $ go further, since you have that memory for (hopefully) your entire life. Spending money on eating out at lunch and coffee everyday won’t even make a dent in your memory.
Lets assume you spend $15/weekday on food and coffee. If you brown bag and save $10/day, you’d save $2600/year. After 5 years, you’d have $13k saved. That $13k can buy you two weeks in Bora Bora with those overwater bungalow. That memory will be with you for many years to come. Not so with fast food and Starbucks.
equalizer
August 4, 2011 @
8:29 PM
AN wrote:BoomerAang wrote:You [quote=AN][quote=BoomerAang]You guys are making me feel old… i haven’t even hit 30 yet…but i agree with spending it on memorable things to make life worthwhile…[/quote]
How can you feel old when you’re probably one of the youngest on here. I feel like a baby to some on this board when they talk about the 70s. But yes, I totally agree that spending it on memorable things makes your $ go further, since you have that memory for (hopefully) your entire life. Spending money on eating out at lunch and coffee everyday won’t even make a dent in your memory.
Lets assume you spend $15/weekday on food and coffee. If you brown bag and save $10/day, you’d save $2600/year. After 5 years, you’d have $13k saved. That $13k can buy you two weeks in Bora Bora with those overwater bungalow. That memory will be with you for many years to come. Not so with fast food and Starbucks.[/quote]
That fast food could be with you if you sit here too long instead of the bike!
an
August 4, 2011 @
9:15 PM
equalizer wrote:
That fast [quote=equalizer]
That fast food could be with you if you sit here too long instead of the bike![/quote]
Touché 🙂
desmond
August 4, 2011 @
5:32 PM
That’s right flu, my Dad was That’s right flu, my Dad was a Pharmacist, owned his own store in Escondido for years, basically worked his ass off, got sick, and I mean sick (Creutzfeldt-Jakob)and passed away before he could really enjoy life. I enjoy life and don’t let the little stuff get in the way. Be safe in that car.
sdrealtor
August 4, 2011 @
5:37 PM
Same thing happened to my Same thing happened to my Dad.
Coronita
August 4, 2011 @
5:58 PM
desmond wrote:That’s right [quote=desmond]That’s right flu, my Dad was a Pharmacist, owned his own store in Escondido for years, basically worked his ass off, got sick, and I mean sick (Creutzfeldt-Jakob)and passed away before he could really enjoy life. I enjoy life and don’t let the little stuff get in the way. Be safe in that car.[/quote]
My outlook has changed over the past 2 years. Maybe I’m just getting old…. I got a 6 inch benign tumor growing in my gut, which is more annoying than anything else, but unfortunately very difficult to operate because it’s wrapped around my small intestine, which would go and which wouldn’t be an option since I also have no colon. so, looks like chemo time. I keep my w-2 job for the explicit purpose of insurance. But other than that, just kinda enjoy life these days…Because like I say, you never know what tomorrow brings..
PS: not that I was counting on it, but obamacare didn’t really do didly….except drive up my insurance premiums.
PPS: that’s the entire reason why I want rental property or some performing asset. I really want income when I don’t work…Sometimes, when you get to an age and shit happens, you really can’t count on working anymore…
It’s different for example if I was 50, 60, or 70 because I would have worked throughout most of my life. But if you’re in your thirties and have to call it quits early, the variables are just different.
CA renter
August 5, 2011 @
3:36 AM
flu wrote:desmond [quote=flu][quote=desmond]That’s right flu, my Dad was a Pharmacist, owned his own store in Escondido for years, basically worked his ass off, got sick, and I mean sick (Creutzfeldt-Jakob)and passed away before he could really enjoy life. I enjoy life and don’t let the little stuff get in the way. Be safe in that car.[/quote]
My outlook has changed over the past 2 years. Maybe I’m just getting old…. I got a 6 inch benign tumor growing in my gut, which is more annoying than anything else, but unfortunately very difficult to operate because it’s wrapped around my small intestine, which would go and which wouldn’t be an option since I also have no colon. so, looks like chemo time. I keep my w-2 job for the explicit purpose of insurance. But other than that, just kinda enjoy life these days…Because like I say, you never know what tomorrow brings..
PS: not that I was counting on it, but obamacare didn’t really do didly….except drive up my insurance premiums.
PPS: that’s the entire reason why I want rental property or some performing asset. I really want income when I don’t work…Sometimes, when you get to an age and shit happens, you really can’t count on working anymore…
It’s different for example if I was 50, 60, or 70 because I would have worked throughout most of my life. But if you’re in your thirties and have to call it quits early, the variables are just different.[/quote]
Yep, life has a way of reorganizing your priorities for you.
You have a great attitude, in spite of having to deal with the crappy health issues. Good luck with the chemo, flu.
BoomerAang
August 5, 2011 @
12:06 PM
Sorry to hear about the Sorry to hear about the health flu. My father is recuperating after chemo right now from colon cancer, so you have my sympathies.
My general post was to simply say to enjoy life instead of worrying about money all the time. I’m trying to do as much possible before I have any kids, which might throw a wrench into current plans.
eavesdropper
August 4, 2011 @
6:28 PM
flu wrote:sdrealtor [quote=flu][quote=sdrealtor][quote=eavesdropper]
CAR, you get sucked in so easily.
I’ll bet he spent it all on online porn and beef jerky.[/quote]
He bought the car. I’ve seen the car[/quote]
Yes, but I run online pXrn and beef jerky businesses too 🙂
But hey, really this doesn’t matter.
Health is key here…Some of you folks worry about the economy…Trust me, a lot of more sh1t can go wrong…So like i said, good health folks! Can’t take this shit with you when you go.[/quote]
Jeez, flu, just put it on a freakin’ Hallmark card, and sell it for $3.50.
Let’s get down to business and hook me up with a discount for your online porn and beef jerky business. My mom’s gonna be 87 in another 3 days, and she’ll kick my ass if I forget her birthday again.
an
August 4, 2011 @
7:30 AM
flu wrote:desmond wrote:Hey [quote=flu][quote=desmond]Hey flu,
What did you do with the savings? And did you refi after this one?[/quote]
Bought stocks and got lucky, which then I used to buy a 550 for my dad when he uses when he’s down here in S.D. Otherwise, it just sits in my garage…Or at least in theory. Can’t really resist the twin turbo v8. Dinan chip goes in soon…Really soon.
I haven’t refi’ed yet. But I’m tempting to again because the rates are falling again.[/quote]
Nicely done sir.
August 28, 2010 @ 9:42 AM
It comes out to be about
It comes out to be about +$700/month.
August 28, 2010 @ 12:06 PM
flu wrote:It comes out to be
[quote=flu]It comes out to be about +$700/month.[/quote]
$700/month in your pocket thanks to government intervention. Not bad. 🙂
August 28, 2010 @ 12:18 PM
briansd1 wrote:flu wrote:It
[quote=briansd1][quote=flu]It comes out to be about +$700/month.[/quote]
$700/month in your pocket thanks to government intervention. Not bad. :)[/quote]
Yup, I have to say.. If you can’t beat them, join them.
I’m going to be milking everything I can out of these bailouts.
$700/month. Maybe I can go pick up a 1/1 somewhere.
August 28, 2010 @ 9:46 AM
Throw a party for your fellow
Throw a party for your fellow Piggs.
August 28, 2010 @ 10:06 AM
I voted pay extra
I voted pay extra principal… but that’s because that’s what I’m doing.
The other choice that appeals to me is the put it in your kids’ college fund.
It depends on your long term goals and comfort with debt… I know I’m not typical – but I really want to be 100% debt free. Even if inflation happens – having NO mortgage payment is a nice place to be.
August 28, 2010 @ 1:06 PM
“Save the extra money in
“Save the extra money in cash, when inflation kicks in, you’ll be kicking yourself for paying the loan off early”
What? If inflation kicks in, how can you not be kicking yourself if you put the extra money in cash. You want to be in cash only for deflationary scenario, otherwise you lose.
August 28, 2010 @ 1:14 PM
carlsbadworker wrote:”Save
[quote=carlsbadworker]”Save the extra money in cash, when inflation kicks in, you’ll be kicking yourself for paying the loan off early”
What? If inflation kicks in, how can you not be kicking yourself if you put the extra money in cash. You want to be in cash only for deflationary scenario, otherwise you lose.[/quote]
If inflation kicks in, wouldn’t it be dumber pay off your mortgage earlier? Afterall, the mortgage rate is fixed…So wouldn’t present day dollar be worth more than future dollar?
I was thinking hypothetically, if I instead of pay the mortgage off earlier, that same amount could be kept on the side so that as rates creep up, so would the investment returns investing in present day rates at that time. Surely, something has be able to beat 3.75% in the future?
August 28, 2010 @ 1:31 PM
flu wrote:carlsbadworker
[quote=flu][quote=carlsbadworker]”Save the extra money in cash, when inflation kicks in, you’ll be kicking yourself for paying the loan off early”
What? If inflation kicks in, how can you not be kicking yourself if you put the extra money in cash. You want to be in cash only for deflationary scenario, otherwise you lose.[/quote]
If inflation kicks in, wouldn’t it be dumber pay off your mortgage earlier? Afterall, the mortgage rate is fixed…So wouldn’t present day dollar be worth more than future dollar?
I was thinking hypothetically, if I instead of pay the mortgage off earlier, that same amount could be kept on the side so that as rates creep up, so would the investment returns investing in present day rates at that time. Surely, something has be able to beat 3.75% in the future?[/quote]
You’re both right. If inflation kicks in, you don’t want to have paid it down on your mortgage. But you also don’t want to hold it in cash. Inflation depreciates the value of cash. You want the cash AVAILABLE if big time inflation kicks in, so you can invest it in “stuff”. You want something other than dollars. You already own the house, so investing more in the house (by paying off the mortgage faster) doesn’t increase your net worth, it’s essentially the same as holding cash during an inflationary period. Stocks in companies which are highly leveraged, those with big inventories with slower turnover, and the type of sales which keep pace with inflation would be good choices. Possibly additional real estate (or investments in RE companies) MIGHT be a good choice. (RE sometimes doesn’t “inflate” on the same schedule as other stuff.)
August 28, 2010 @ 2:19 PM
Do the responsible thing and
Do the responsible thing and do what you can for your country. Use the savings for the down payment on a lease for a new Cadillac Escalade and help save the economy.
August 28, 2010 @ 2:43 PM
I would try to invest it to
I would try to invest it to make up for all the previous interest you were paying.
August 28, 2010 @ 5:37 PM
FLU..
I think that you said
FLU..
I think that you said your rate was 3.75% ?
Your payment is $3058 (for 180 months).
If you add $700 to your payment EVERY month, you will pay the loan off in 11.5 years.
This will relieve you of having to make 42 payments of $3058, saving you $128,436 in future payments.
The cost to do this will be 138 payments of $700 or $96,600 (over 11.5 years)
You will earn a guaranteed compounded tax-free return of 3.75%
**Is this a worthwhile return to you ??
At today’s rates you cannot earn that type of return guaranteed anyplace else.
CD’s would probably have to be above 6% to equal the net return.
Over the last decade it was probably better to pay down a mortgage with after tax dollars than put pre-tax money into a 401K….
**Past performance is no guarantee of future results** 🙂
August 28, 2010 @ 6:05 PM
Excellent post, HLS :=)
Excellent post, HLS :=)
August 28, 2010 @ 7:17 PM
Just one little quibble with
Just one little quibble with this:
[quote=HLS]You will earn a guaranteed compounded tax-free return of 3.75%
**Is this a worthwhile return to you ??
[/quote]
It will be better than guaranteed. It won’t, however, be tax free. Paying the interest is tax-deductible, so not paying it would not be tax free.
August 28, 2010 @ 10:02 PM
HLS wrote:You will earn a
[quote=HLS]You will earn a guaranteed compounded tax-free return of 3.75%
[/quote]
It won’t, however, be tax free. Paying the interest is tax-deductible, so not paying it would not be tax free…
SK..
Perhaps I didn’t explain it clearly. The compound return IS tax free compared to earning 3.75% on a CD but having to pay income tax on the interest earned. The power of compounding is the major benefit.
Interest expense is not 100% reduction dollar for dollar.
Paying $1 in interest to save 30c in taxes still costs you 70c
I still see it as a tax free return.
Not everyone needs/can use the deduction.
Contact your tax advisor for a detailed analysis.
If you are a tax advisor I’d be happy to discuss this with you!
August 28, 2010 @ 11:50 PM
HLS wrote: Interest expense
[quote=HLS] Interest expense is not 100% reduction dollar for dollar.
Paying $1 in interest to save 30c in taxes still costs you 70c
I still see it as a tax free return.
Not everyone needs/can use the deduction.
Contact your tax advisor for a detailed analysis.
If you are a tax advisor I’d be happy to discuss this with you![/quote]
You are correct that the expense is not dollar for dollar tax reduction. It’s at whatever the borrower’s marginal tax rate is. Exactly the same as NOT having the interest deduction will cost.
(There may be some minor differences between the tax cost of interest income and the tax benefit of an interest deduction, particularly in some income ranges, but those differences are usually slight. Less than 1% of the interest saved.)
The key part of the analysis here is what the alternative investment will be. If it will be some very low risk fixed income investment, like government bonds or insured CD’s, then it’s comparing the interest rates on the income vehicle v. the rate on the loan. If the interest rate is the same, I usually recommend to NOT pay off the loan, and retain the flexibility of having an asset that can be turned into cash easier than reborrowing the money in an emergency. I’ve been through the analysis dozens of times, and the tax difference is minimal. When interest rates were higher, paying off a 7% loan was a guaranteed 7% return, better than most all very low risk alternative investments. Now, with interest rates so low, the flexibility all by itself is a pretty strong incentive to not pay off the loan.
(And yes, I am technically still a tax advisor, though I’m trying hard to make my clients go away. 20 years was long enough, so I quit. Kind of. That was 10 years ago.)
August 29, 2010 @ 2:41 AM
$250 toward mortgage
$250 toward mortgage principal
$250 toward college savings
$200 toward savings/investments/retirement
Or, just do what HLS said. 🙂
August 29, 2010 @ 8:05 AM
I’d buy that 1/1 you talked
I’d buy that 1/1 you talked about and become an evil slumlord.
Seriously though, real estate investing is a relatively inflation proof vehicle. And unless your timing is horrendous, over a long enough length of time it will appreciate well enough to beat most other investments. By that I mean if you have a 100K house that appreciates to a $150K house over a a 20 year period, while that measly 2% ROR might not beat other investments, keeping in mind that someone else (tenants) financed that return for you, it wins. You end up with $150K for virtually nothing paid into it, say your $30K down payment. That ROR is ~8%. If inflation runs rampant you win even more. Of course there are expenses that pop up like that 2 months planned vacancy factor, but there are also deductions that offset a lot of that.
If housing bubbles again at any time in the next 20 years, or simply appreciates over 20 years at a better than 2 % rate, you win more. Higher ROR at the end and higher rents over term, yay!
The risk is if RE deflates tremendously over that long a period of time, and that is a relatively low risk. Even still, if that $100K house is worth $90K in 20 years, you have $90K with virtually nothing paid into it, so its not a real “loss” its just a smaller return. Lets say you put $30K down on that $100K 1/1, and in 20 years its worth only $90K. If you assume rent/mortgage neutral over that time, you still end up with just over 5% return. For RE to be that bad off over 20 years, imagine what your ROR will be in the stock market?
One other thing, with rates so low right now, paying down that mtg is not where I’d go. I’d look for a way to take advantage of those low rates by borrowing more. That 1/1 will be even more nice over time if your rate on it is low. If rates are high then paying down the principal and saving interest is the right play. Not with rates like 3.5% which is what I thought you were at.
Or, just put it all into a “monthly” Pigg Party 🙂
August 29, 2010 @ 9:41 AM
kicksavedave wrote:I’d buy
[quote=kicksavedave]I’d buy that 1/1 you talked about and become an evil slumlord. [/quote]
Not a bad idea.
How about a condo in a college town where you children will go to college?
Depending on the college town, it might be a good buy.
August 29, 2010 @ 10:57 AM
briansd1 wrote:How about a
[quote=briansd1]How about a condo in a college town where you children will go to college?
Depending on the college town, it might be a good buy.[/quote]
Brian, I’ve often thought of this. I’ve known agents in S. Bay (SD) who have purchased condos near UCSD for their children to live in (local students DO commute from S. Bay to UCSD daily but this can be problematic).
However, these agents purchased 2/2’s or 3/2.5’s so that they could collect rent from roommates (or parents of roommates) to defray their PITI. It ends up to be much cheaper than a dorm for their own student and the possibility exists that they could fix it up a little and sell it for a profit when their last kid is finished using it. Of course, between college kids (or if one of your kids isn’t accepted there), it would have to be rented to other students in the interim.
I think this can be a good investment for a parent of college-aged kids, if purchased at the right price.
August 29, 2010 @ 11:31 AM
I voted for the car. I know
I voted for the car. I know you love cars and beleive it would make you the happiest of those other choices. You seem to have everything else take care of so live a little;)
August 29, 2010 @ 2:45 PM
sdrealtor wrote:I voted for
[quote=sdrealtor]I voted for the car. I know you love cars and beleive it would make you the happiest of those other choices. You seem to have everything else take care of so live a little;)[/quote]
So did I. I tried to find the thread, but I “thought” you were into cars so if you have everything taken care of, feel free to splurge. Your retirement is max, job is safe, housing covered, nothing wrong with driving something you actually enjoy.
Maybe take it to some road courses as well or sign up for some track time…Great fun.
August 29, 2010 @ 12:07 PM
Timing is
Timing is everything.
[quote=bearishgurl]
Brian, I’ve often thought of this. I’ve known agents in S. Bay (SD) who have purchased condos near UCSD for their children to live in (local students DO commute from S. Bay to UCSD daily but this can be problematic).
However, these agents purchased 2/2’s or 3/2.5’s so that they could collect rent from roommates (or parents of roommates) to defray their PITI. It ends up to be much cheaper than a dorm for their own student and the possibility exists that they could fix it up a little and sell it for a profit when their last kid is finished using it. Of course, between college kids (or if one of your kids isn’t accepted there), it would have to be rented to other students in the interim.
I think this can be a good investment for a parent of college-aged kids, if purchased at the right price.[/quote]
My daughter just finished school there. After her freshman year, her friend’s grandmother thought that very same thing. So she bought a 2+/2, her grandaughter had one BR, my daughter had the other and paid rent. I have no idea what the cash flow was because I have no idea what her financing was.
But I do know she’s lost a ton of money. She paid over and $600K. There are comparable units listed now for under $400K. Worked out to be a great investment. For me. I only paid rent during the school year, and my daughter got her apartment back each september. Not so much for grandma.
Given what the rents in the area are, I’m not sure it’s a very good investment even now that prices have come way way down.
August 29, 2010 @ 12:36 PM
SK in CV wrote:Timing is
[quote=SK in CV]Timing is everything.
[quote=bearishgurl] . . . I think this can be a good investment for a parent of college-aged kids, if purchased at the right price.[/quote]
My daughter just finished school there. After her freshman year, her friend’s grandmother thought that very same thing. So she bought a 2+/2, her grandaughter had one BR, my daughter had the other and paid rent. I have no idea what the cash flow was because I have no idea what her financing was.
But I do know she’s lost a ton of money. She paid over and $600K. There are comparable units listed now for under $400K. Worked out to be a great investment. For me. I only paid rent during the school year, and my daughter got her apartment back each september. Not so much for grandma.
Given what the rents in the area are, I’m not sure it’s a very good investment even now that prices have come way way down.[/quote](emphasis added)
Yes, SK, you are quite right in that timing is everything. For example, agents I am speaking of purchased in ’91 – ’92. One purchased a 3/2.5 in a complex near Univ. Town Square for approx. $172K. Another purchased a 2/2 in a nice complex on the west end of Fashion Valley (2 children attending USD, staggered) for $156K, I believe. The FV complex was actually a lot nicer than the UTC complex and the UTC unit needed work before it could be occupied, but had a garage. The FV complex had underground pkg. I have no idea if the agent who purchased the UCSD unit still owns it but the agent who purchased the FV unit sold it in 2000, when her kids no longer needed it and she made a good profit on it.
For the life of me, many of the complexes close to UCSD are older with many units needing rehab. I CAN’T imagine they EVER sold for $600K or are are getting even close $400K now. I believe your “grandmother” story (above) but find those prices ridiculous. Did “grandmother” purchase in a *newer* construction complex? Obviously, she paid too much for the unit.
August 29, 2010 @ 1:43 PM
bearishgurl wrote:
For the
[quote=bearishgurl]
For the life of me, many of the complexes close to UCSD are older with many units needing rehab. I CAN’T imagine they EVER sold for $600K or are are getting even close $400K now. I believe your “grandmother” story (above) but find those prices ridiculous. Did “grandmother” purchase in a *newer* construction complex? Obviously, she paid too much for the unit.[/quote]
Brand new unit at Regents. Very nice complex. It was way above what most students were living in when the girls first moved in. Now there are a lot of students there. I thought it was going to be a bad investment when she first bought it. It has an extra den, which she decorated as a 3rd bedroom, so she could come down and visit her grand-daughter a few times a year. Seemed silly, what college age girl is going to want grandma visiting regularly? I think she ended up coming down for one long weekend each school year, and a few times during the summers.
Her timing and selection of the complex and unit she bought couldn’t have been worse. Financially, the perfect example of how not to buy. But I do hope my daughter can find similar housing when she goes off to grad school. Time for her to start making friends with women with rich grandmothers.
August 29, 2010 @ 3:23 PM
SK in CV wrote: . . . Her
[quote=SK in CV] . . . Her timing and selection of the complex and unit she bought couldn’t have been worse. Financially, the perfect example of how not to buy. But I do hope my daughter can find similar housing when she goes off to grad school. Time for her to start making friends with women with rich grandmothers.[/quote]
Congratulations on your daughter’s successful graduation from UCSD! This is no easy feat what with all the current budget cuts (read: instructor layoffs) at the undergrad level.
August 29, 2010 @ 7:42 PM
bearishgurl
[quote=bearishgurl]
Congratulations on your daughter’s successful graduation from UCSD! This is no easy feat what with all the current budget cuts (read: instructor layoffs) at the undergrad level.[/quote]
Thank you. All she did was study, graduate with honors, and soon will be off to med school. I PAID for it!
August 29, 2010 @ 10:16 PM
SK in CV wrote:
Brand new
[quote=SK in CV]
Brand new unit at Regents. Very nice complex. It was way above what most students were living in when the girls first moved in. Now there are a lot of students there. I thought it was going to be a bad investment when she first bought it. It has an extra den, which she decorated as a 3rd bedroom, so she could come down and visit her grand-daughter a few times a year. Seemed silly, what college age girl is going to want grandma visiting regularly? I think she ended up coming down for one long weekend each school year, and a few times during the summers.
Her timing and selection of the complex and unit she bought couldn’t have been worse. Financially, the perfect example of how not to buy. But I do hope my daughter can find similar housing when she goes off to grad school. Time for her to start making friends with women with rich grandmothers.[/quote]
Your daughter is lucky to have a generous grandmother.
This is an apartment conversion project but a pretty nice one, especially for students.
It was an unfortunate purchase at the peak, for sure.
jp did a great job watching this complex.
http://www.sdlookup.com/Forums/RegionsandNeighborhoods/tabid/62/forumid/188/tpage/1/view/topic/postid/52764/Default.aspx#52764
August 29, 2010 @ 12:59 PM
bearishgurl wrote:
I think
[quote=bearishgurl]
I think this can be a good investment for a parent of college-aged kids, if purchased at the right price.[/quote]
I wouldn’t buy in San Diego.
But there are plenty of college towns across America. That said, I would only buy where I want to visit frequently.
I bought a place in Philly and rent it to my friend. She has a roommate who’s a grad student. It’s a 3-bedroom, so there’s still one bedroom if she wants another roommate. It works out pretty well for them; and I have my costs covered.
Time will tell how it works out long term.
August 29, 2010 @ 10:25 PM
briansd1 wrote:kicksavedave
[quote=briansd1][quote=kicksavedave]I’d buy that 1/1 you talked about and become an evil slumlord. [/quote]
Not a bad idea.
How about a condo in a college town where you children will go to college?
Depending on the college town, it might be a good buy.[/quote]
Brian, I would think that would be good idea, except that being that she’s 4, it’s a long way to go. What if she doesn’t go to college? Ok, unlikely. But what if she ends up like me and goes to a college in the middle of nowhere. My choices for excitement in school, was either getting drunk @ west campus, being a geek @ north campus, or almost getting sent to the JA for illegally skating on a frozen lakes. I double checked the area near my old school, and even during the RE bubble, it was one of the few places that saw NO appreciation (LOL).
August 30, 2010 @ 10:12 AM
Consider precious metal
Consider precious metal investment, probably silver since it is lower priced. Check this rumor out:
“It gets scarier vis-a-vis prospects of US bonds: ‘The rumors appear to have started following reports on Aug. 28 which cited Ming Pao, a Hong Kong-based news agency, saying that because of an approximately $430 billion loss on U.S. Treasury bonds, the Chinese government may punish some individuals within the PBC, including Zhou.'”
http://www.zerohedge.com/article/rumor-pboc-governor-zhou-xiaochuan-has-defected-china-after-suffering-half-trillion-ust-rela
August 28, 2010 @ 7:28 PM
HLS wrote:FLU..
I think that
[quote=HLS]FLU..
I think that you said your rate was 3.75% ?
Your payment is $3058 (for 180 months).
If you add $700 to your payment EVERY month, you will pay the loan off in 11.5 years.
This will relieve you of having to make 42 payments of $3058, saving you $128,436 in future payments.
The cost to do this will be 138 payments of $700 or $96,600 (over 11.5 years)
You will earn a guaranteed compounded tax-free return of 3.75%
**Is this a worthwhile return to you ??
At today’s rates you cannot earn that type of return guaranteed anyplace else.
CD’s would probably have to be above 6% to equal the net return.
Over the last decade it was probably better to pay down a mortgage with after tax dollars than put pre-tax money into a 401K….
**Past performance is no guarantee of future results** :-)[/quote]
Hmm….11.5 years. That is interesting…Thanks!
I wondering what will happen in 11.5 years…(At the rates these bailouts are going, perhaps we’ll still be debating whether it’s a good time to buy :))
August 29, 2010 @ 12:39 PM
flu, I think you should put
flu, I think you should put your mtg. savings away for a “rainier” day and take a little out to go on family vacations now and then :=)
August 3, 2011 @ 6:04 PM
Hey flu,
What did you do with
Hey flu,
What did you do with the savings? And did you refi after this one?
August 3, 2011 @ 7:30 PM
desmond wrote:Hey flu,
What
[quote=desmond]Hey flu,
What did you do with the savings? And did you refi after this one?[/quote]
Bought stocks and got lucky, which then I used to buy a 550 for my dad when he uses when he’s down here in S.D. Otherwise, it just sits in my garage…Or at least in theory. Can’t really resist the twin turbo v8. Dinan chip goes in soon…Really soon.
I haven’t refi’ed yet. But I’m tempting to again because the rates are falling again.
August 3, 2011 @ 8:28 PM
Awesome, that kind of power
Awesome, that kind of power is out of my league.
August 4, 2011 @ 2:48 AM
flu wrote:desmond wrote:Hey
[quote=flu][quote=desmond]Hey flu,
What did you do with the savings? And did you refi after this one?[/quote]
Bought stocks and got lucky, which then I used to buy a 550 for my dad when he uses when he’s down here in S.D. Otherwise, it just sits in my garage…Or at least in theory. Can’t really resist the twin turbo v8. Dinan chip goes in soon…Really soon.
I haven’t refi’ed yet. But I’m tempting to again because the rates are falling again.[/quote]
Dang, you’re a nice son! 🙂
August 4, 2011 @ 6:42 AM
CA renter wrote:flu
[quote=CA renter][quote=flu][quote=desmond]Hey flu,
What did you do with the savings? And did you refi after this one?[/quote]
Bought stocks and got lucky, which then I used to buy a 550 for my dad when he uses when he’s down here in S.D. Otherwise, it just sits in my garage…Or at least in theory. Can’t really resist the twin turbo v8. Dinan chip goes in soon…Really soon.
I haven’t refi’ed yet. But I’m tempting to again because the rates are falling again.[/quote]
Dang, you’re a nice son! :)[/quote]
CAR, you get sucked in so easily.
I’ll bet he spent it all on online porn and beef jerky.
August 4, 2011 @ 9:28 AM
eavesdropper wrote:CA renter
[quote=eavesdropper][quote=CA renter][quote=flu][quote=desmond]Hey flu,
What did you do with the savings? And did you refi after this one?[/quote]
Bought stocks and got lucky, which then I used to buy a 550 for my dad when he uses when he’s down here in S.D. Otherwise, it just sits in my garage…Or at least in theory. Can’t really resist the twin turbo v8. Dinan chip goes in soon…Really soon.
I haven’t refi’ed yet. But I’m tempting to again because the rates are falling again.[/quote]
Dang, you’re a nice son! :)[/quote]
CAR, you get sucked in so easily.
I’ll bet he spent it all on online porn and beef jerky.[/quote]
He bought the car. I’ve seen the car
August 4, 2011 @ 9:48 AM
sdrealtor wrote:eavesdropper
[quote=sdrealtor][quote=eavesdropper][quote=CA renter][quote=flu][quote=desmond]Hey flu,
What did you do with the savings? And did you refi after this one?[/quote]
Bought stocks and got lucky, which then I used to buy a 550 for my dad when he uses when he’s down here in S.D. Otherwise, it just sits in my garage…Or at least in theory. Can’t really resist the twin turbo v8. Dinan chip goes in soon…Really soon.
I haven’t refi’ed yet. But I’m tempting to again because the rates are falling again.[/quote]
Dang, you’re a nice son! :)[/quote]
CAR, you get sucked in so easily.
I’ll bet he spent it all on online porn and beef jerky.[/quote]
He bought the car. I’ve seen the car[/quote]
Yes, but I run online pXrn and beef jerky businesses too 🙂
But hey, really this doesn’t matter.
Health is key here…Some of you folks worry about the economy…Trust me, a lot of more sh1t can go wrong…So like i said, good health folks! Can’t take this shit with you when you go.
August 4, 2011 @ 10:04 AM
flu wrote:Yes, but I run
[quote=flu]Yes, but I run online pXrn and beef jerky businesses too 🙂
But hey, really this doesn’t matter.
Health is key here…Some of you folks worry about the economy…Trust me, a lot of more sh1t can go wrong…So like i said, good health folks! Can’t take this shit with you when you go.[/quote]
I’d add in time as well. Doesn’t matter if you’re rich or poor, time marches on and you can’t get it back.
August 4, 2011 @ 4:46 PM
You guys are making me feel
You guys are making me feel old… i haven’t even hit 30 yet…but i agree with spending it on memorable things to make life worthwhile…
August 4, 2011 @ 5:28 PM
BoomerAang wrote:You guys are
[quote=BoomerAang]You guys are making me feel old… i haven’t even hit 30 yet…but i agree with spending it on memorable things to make life worthwhile…[/quote]
How can you feel old when you’re probably one of the youngest on here. I feel like a baby to some on this board when they talk about the 70s. But yes, I totally agree that spending it on memorable things makes your $ go further, since you have that memory for (hopefully) your entire life. Spending money on eating out at lunch and coffee everyday won’t even make a dent in your memory.
Lets assume you spend $15/weekday on food and coffee. If you brown bag and save $10/day, you’d save $2600/year. After 5 years, you’d have $13k saved. That $13k can buy you two weeks in Bora Bora with those overwater bungalow. That memory will be with you for many years to come. Not so with fast food and Starbucks.
August 4, 2011 @ 8:29 PM
AN wrote:BoomerAang wrote:You
[quote=AN][quote=BoomerAang]You guys are making me feel old… i haven’t even hit 30 yet…but i agree with spending it on memorable things to make life worthwhile…[/quote]
How can you feel old when you’re probably one of the youngest on here. I feel like a baby to some on this board when they talk about the 70s. But yes, I totally agree that spending it on memorable things makes your $ go further, since you have that memory for (hopefully) your entire life. Spending money on eating out at lunch and coffee everyday won’t even make a dent in your memory.
Lets assume you spend $15/weekday on food and coffee. If you brown bag and save $10/day, you’d save $2600/year. After 5 years, you’d have $13k saved. That $13k can buy you two weeks in Bora Bora with those overwater bungalow. That memory will be with you for many years to come. Not so with fast food and Starbucks.[/quote]
That fast food could be with you if you sit here too long instead of the bike!
August 4, 2011 @ 9:15 PM
equalizer wrote:
That fast
[quote=equalizer]
That fast food could be with you if you sit here too long instead of the bike![/quote]
Touché 🙂
August 4, 2011 @ 5:32 PM
That’s right flu, my Dad was
That’s right flu, my Dad was a Pharmacist, owned his own store in Escondido for years, basically worked his ass off, got sick, and I mean sick (Creutzfeldt-Jakob)and passed away before he could really enjoy life. I enjoy life and don’t let the little stuff get in the way. Be safe in that car.
August 4, 2011 @ 5:37 PM
Same thing happened to my
Same thing happened to my Dad.
August 4, 2011 @ 5:58 PM
desmond wrote:That’s right
[quote=desmond]That’s right flu, my Dad was a Pharmacist, owned his own store in Escondido for years, basically worked his ass off, got sick, and I mean sick (Creutzfeldt-Jakob)and passed away before he could really enjoy life. I enjoy life and don’t let the little stuff get in the way. Be safe in that car.[/quote]
My outlook has changed over the past 2 years. Maybe I’m just getting old…. I got a 6 inch benign tumor growing in my gut, which is more annoying than anything else, but unfortunately very difficult to operate because it’s wrapped around my small intestine, which would go and which wouldn’t be an option since I also have no colon. so, looks like chemo time. I keep my w-2 job for the explicit purpose of insurance. But other than that, just kinda enjoy life these days…Because like I say, you never know what tomorrow brings..
PS: not that I was counting on it, but obamacare didn’t really do didly….except drive up my insurance premiums.
PPS: that’s the entire reason why I want rental property or some performing asset. I really want income when I don’t work…Sometimes, when you get to an age and shit happens, you really can’t count on working anymore…
It’s different for example if I was 50, 60, or 70 because I would have worked throughout most of my life. But if you’re in your thirties and have to call it quits early, the variables are just different.
August 5, 2011 @ 3:36 AM
flu wrote:desmond
[quote=flu][quote=desmond]That’s right flu, my Dad was a Pharmacist, owned his own store in Escondido for years, basically worked his ass off, got sick, and I mean sick (Creutzfeldt-Jakob)and passed away before he could really enjoy life. I enjoy life and don’t let the little stuff get in the way. Be safe in that car.[/quote]
My outlook has changed over the past 2 years. Maybe I’m just getting old…. I got a 6 inch benign tumor growing in my gut, which is more annoying than anything else, but unfortunately very difficult to operate because it’s wrapped around my small intestine, which would go and which wouldn’t be an option since I also have no colon. so, looks like chemo time. I keep my w-2 job for the explicit purpose of insurance. But other than that, just kinda enjoy life these days…Because like I say, you never know what tomorrow brings..
PS: not that I was counting on it, but obamacare didn’t really do didly….except drive up my insurance premiums.
PPS: that’s the entire reason why I want rental property or some performing asset. I really want income when I don’t work…Sometimes, when you get to an age and shit happens, you really can’t count on working anymore…
It’s different for example if I was 50, 60, or 70 because I would have worked throughout most of my life. But if you’re in your thirties and have to call it quits early, the variables are just different.[/quote]
Yep, life has a way of reorganizing your priorities for you.
You have a great attitude, in spite of having to deal with the crappy health issues. Good luck with the chemo, flu.
August 5, 2011 @ 12:06 PM
Sorry to hear about the
Sorry to hear about the health flu. My father is recuperating after chemo right now from colon cancer, so you have my sympathies.
My general post was to simply say to enjoy life instead of worrying about money all the time. I’m trying to do as much possible before I have any kids, which might throw a wrench into current plans.
August 4, 2011 @ 6:28 PM
flu wrote:sdrealtor
[quote=flu][quote=sdrealtor][quote=eavesdropper]
CAR, you get sucked in so easily.
I’ll bet he spent it all on online porn and beef jerky.[/quote]
He bought the car. I’ve seen the car[/quote]
Yes, but I run online pXrn and beef jerky businesses too 🙂
But hey, really this doesn’t matter.
Health is key here…Some of you folks worry about the economy…Trust me, a lot of more sh1t can go wrong…So like i said, good health folks! Can’t take this shit with you when you go.[/quote]
Jeez, flu, just put it on a freakin’ Hallmark card, and sell it for $3.50.
Let’s get down to business and hook me up with a discount for your online porn and beef jerky business. My mom’s gonna be 87 in another 3 days, and she’ll kick my ass if I forget her birthday again.
August 4, 2011 @ 7:30 AM
flu wrote:desmond wrote:Hey
[quote=flu][quote=desmond]Hey flu,
What did you do with the savings? And did you refi after this one?[/quote]
Bought stocks and got lucky, which then I used to buy a 550 for my dad when he uses when he’s down here in S.D. Otherwise, it just sits in my garage…Or at least in theory. Can’t really resist the twin turbo v8. Dinan chip goes in soon…Really soon.
I haven’t refi’ed yet. But I’m tempting to again because the rates are falling again.[/quote]
Nicely done sir.