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#2
posted to rec.boats
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It's tough being filthy rich...
On Tue, 21 Nov 2017 09:13:27 -0500, wrote:
On Mon, 20 Nov 2017 22:15:21 -0500, wrote: On Mon, 20 Nov 2017 19:12:12 -0500, Alex wrote: Too many people spend every dime they make, don't take advantage of 401K's, and wonder how they are going to retire on SS alone. I also wonder how anyone over 50 or so with a mortgage and car payments ever expects to retire. I paid cash for my house here in 84 and I paid off my mortgage on the condo in 1990. I haven't had a car payment since the Nixon administration. In spite of all of that I sound like a pauper when I hear how much money you guys make. === Smart borrowing, i.e., borrowing to buy an appreciating asset is good business when you can earn a higher return than your after tax interest cost. Even if you can afford to pay cash, borrowing makes sense if you can invest your cash at a higher return. --- This email has been checked for viruses by AVG. http://www.avg.com My Dutch friend's grandson gets government student loans, at zero percent interest, and promptly puts the money in an interest earning account. The interest rate may change next year, but right now Dutch college students are getting a pretty good deal. |
#3
posted to rec.boats
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It's tough being filthy rich...
On Tue, 21 Nov 2017 11:14:18 -0500, John H
wrote: On Tue, 21 Nov 2017 09:13:27 -0500, wrote: On Mon, 20 Nov 2017 22:15:21 -0500, wrote: On Mon, 20 Nov 2017 19:12:12 -0500, Alex wrote: Too many people spend every dime they make, don't take advantage of 401K's, and wonder how they are going to retire on SS alone. I also wonder how anyone over 50 or so with a mortgage and car payments ever expects to retire. I paid cash for my house here in 84 and I paid off my mortgage on the condo in 1990. I haven't had a car payment since the Nixon administration. In spite of all of that I sound like a pauper when I hear how much money you guys make. === Smart borrowing, i.e., borrowing to buy an appreciating asset is good business when you can earn a higher return than your after tax interest cost. Even if you can afford to pay cash, borrowing makes sense if you can invest your cash at a higher return. --- This email has been checked for viruses by AVG. http://www.avg.com My Dutch friend's grandson gets government student loans, at zero percent interest, and promptly puts the money in an interest earning account. The interest rate may change next year, but right now Dutch college students are getting a pretty good deal. === That's a perfect example of smart borrowing as long as the funds are invested safely, the interest rate is guaranteed and the loan can be repaid without penalty. Everyone's situation and tolerance for risk is different however. |
#4
posted to rec.boats
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It's tough being filthy rich...
On Tue, 21 Nov 2017 11:50:40 -0500, wrote:
On Tue, 21 Nov 2017 11:14:18 -0500, John H wrote: On Tue, 21 Nov 2017 09:13:27 -0500, wrote: On Mon, 20 Nov 2017 22:15:21 -0500, wrote: On Mon, 20 Nov 2017 19:12:12 -0500, Alex wrote: Too many people spend every dime they make, don't take advantage of 401K's, and wonder how they are going to retire on SS alone. I also wonder how anyone over 50 or so with a mortgage and car payments ever expects to retire. I paid cash for my house here in 84 and I paid off my mortgage on the condo in 1990. I haven't had a car payment since the Nixon administration. In spite of all of that I sound like a pauper when I hear how much money you guys make. === Smart borrowing, i.e., borrowing to buy an appreciating asset is good business when you can earn a higher return than your after tax interest cost. Even if you can afford to pay cash, borrowing makes sense if you can invest your cash at a higher return. --- This email has been checked for viruses by AVG. http://www.avg.com My Dutch friend's grandson gets government student loans, at zero percent interest, and promptly puts the money in an interest earning account. The interest rate may change next year, but right now Dutch college students are getting a pretty good deal. === That's a perfect example of smart borrowing as long as the funds are invested safely, the interest rate is guaranteed and the loan can be repaid without penalty. Everyone's situation and tolerance for risk is different however. I'm surprised the government lets them get away with it, but more power to him. He's working part time to pay for his college which is why he can do it. Industrious young guy. |
#5
posted to rec.boats
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It's tough being filthy rich...
On 11/21/2017 3:29 PM, John H wrote:
On Tue, 21 Nov 2017 11:50:40 -0500, wrote: On Tue, 21 Nov 2017 11:14:18 -0500, John H wrote: On Tue, 21 Nov 2017 09:13:27 -0500, wrote: On Mon, 20 Nov 2017 22:15:21 -0500, wrote: On Mon, 20 Nov 2017 19:12:12 -0500, Alex wrote: Too many people spend every dime they make, don't take advantage of 401K's, and wonder how they are going to retire on SS alone. I also wonder how anyone over 50 or so with a mortgage and car payments ever expects to retire. I paid cash for my house here in 84 and I paid off my mortgage on the condo in 1990. I haven't had a car payment since the Nixon administration. In spite of all of that I sound like a pauper when I hear how much money you guys make. === Smart borrowing, i.e., borrowing to buy an appreciating asset is good business when you can earn a higher return than your after tax interest cost. Even if you can afford to pay cash, borrowing makes sense if you can invest your cash at a higher return. --- This email has been checked for viruses by AVG. http://www.avg.com My Dutch friend's grandson gets government student loans, at zero percent interest, and promptly puts the money in an interest earning account. The interest rate may change next year, but right now Dutch college students are getting a pretty good deal. === That's a perfect example of smart borrowing as long as the funds are invested safely, the interest rate is guaranteed and the loan can be repaid without penalty. Everyone's situation and tolerance for risk is different however. I'm surprised the government lets them get away with it, but more power to him. He's working part time to pay for his college which is why he can do it. Industrious young guy. That's an interesting system. If I recall correctly government student loans or government backed student loans in the USA are paid to the college/university who then disperses the funds per semester or other schedule they may have. |
#6
posted to rec.boats
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It's tough being filthy rich...
On Tue, 21 Nov 2017 15:47:48 -0500, "Mr. Luddite" wrote:
On 11/21/2017 3:29 PM, John H wrote: On Tue, 21 Nov 2017 11:50:40 -0500, wrote: On Tue, 21 Nov 2017 11:14:18 -0500, John H wrote: On Tue, 21 Nov 2017 09:13:27 -0500, wrote: On Mon, 20 Nov 2017 22:15:21 -0500, wrote: On Mon, 20 Nov 2017 19:12:12 -0500, Alex wrote: Too many people spend every dime they make, don't take advantage of 401K's, and wonder how they are going to retire on SS alone. I also wonder how anyone over 50 or so with a mortgage and car payments ever expects to retire. I paid cash for my house here in 84 and I paid off my mortgage on the condo in 1990. I haven't had a car payment since the Nixon administration. In spite of all of that I sound like a pauper when I hear how much money you guys make. === Smart borrowing, i.e., borrowing to buy an appreciating asset is good business when you can earn a higher return than your after tax interest cost. Even if you can afford to pay cash, borrowing makes sense if you can invest your cash at a higher return. --- This email has been checked for viruses by AVG. http://www.avg.com My Dutch friend's grandson gets government student loans, at zero percent interest, and promptly puts the money in an interest earning account. The interest rate may change next year, but right now Dutch college students are getting a pretty good deal. === That's a perfect example of smart borrowing as long as the funds are invested safely, the interest rate is guaranteed and the loan can be repaid without penalty. Everyone's situation and tolerance for risk is different however. I'm surprised the government lets them get away with it, but more power to him. He's working part time to pay for his college which is why he can do it. Industrious young guy. That's an interesting system. If I recall correctly government student loans or government backed student loans in the USA are paid to the college/university who then disperses the funds per semester or other schedule they may have. Right now government student loans have the interest rates shown: The interest rate for undergraduate students is 4.45% for the 2017-18 school year, up from 3.76% for the current year. Graduate students can borrow at a rate of 6%, up from 5.31%. And for graduate students and parents who take out PLUS loans, the interest rate will be 7%, up from 6.31%. The feds send the money direct to the school. |
#7
posted to rec.boats
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It's tough being filthy rich...
On Tue, 21 Nov 2017 11:14:18 -0500, John H
wrote: My Dutch friend's grandson gets government student loans, at zero percent interest, and promptly puts the money in an interest earning account. The interest rate may change next year, but right now Dutch college students are getting a pretty good deal. I have some money in "interest bearing accounts" but the interest is a quarter of a percent or something. Wheee! |
#8
posted to rec.boats
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It's tough being filthy rich...
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#9
posted to rec.boats
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It's tough being filthy rich...
On Tue, 21 Nov 2017 09:13:27 -0500,
wrote: On Mon, 20 Nov 2017 22:15:21 -0500, wrote: On Mon, 20 Nov 2017 19:12:12 -0500, Alex wrote: Too many people spend every dime they make, don't take advantage of 401K's, and wonder how they are going to retire on SS alone. I also wonder how anyone over 50 or so with a mortgage and car payments ever expects to retire. I paid cash for my house here in 84 and I paid off my mortgage on the condo in 1990. I haven't had a car payment since the Nixon administration. In spite of all of that I sound like a pauper when I hear how much money you guys make. === Smart borrowing, i.e., borrowing to buy an appreciating asset is good business when you can earn a higher return than your after tax interest cost. Even if you can afford to pay cash, borrowing makes sense if you can invest your cash at a higher return. That probably describes a house, particularly a second home or a rental but not necessarily your residence unless you want to sell it and downsize or live in your car in your old age. Your home is not your piggy bank., We should have learned that a decade ago. Cars, boats and just about every other toy is not going to be an appreciating asset. It is just an expense and you do not want that to be an expense that you also pay interest on. Rationalizing that you invested the money you spent on your toys and the interest is zero only says you have more money than you need. That does not describe most Americans and if the **** does hit the fan, as can happen to the retired, you lose your toys. If that is your car, it is a significant loss. Normal people should not be going into retirement with debt unless they have the liquid assets to pay that debt off ... and that is rare. Personally I like the idea that I can cut back on the luxuries I pay cash for and live very cheap if I need to because I don't owe anyone any money. |
#10
posted to rec.boats
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It's tough being filthy rich...
On Tue, 21 Nov 2017 11:17:22 -0500, wrote:
Normal people should not be going into retirement with debt unless they have the liquid assets to pay that debt off ... and that is rare. Personally I like the idea that I can cut back on the luxuries I pay cash for and live very cheap if I need to because I don't owe anyone any money. === Everyone's situation is different. I have no problem carrying debt forever as long as I can earn a higher return somewhere else. Additionally, the government subsidizes home mortgages via the tax deduction on interest paid. --- This email has been checked for viruses by AVG. http://www.avg.com |
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