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NOYB wrote: "basskisser" wrote in message oups.com... NOYB wrote: "basskisser" wrote in message oups.com... NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... Boy, you sure put a lot of thought into that reply. Sorry I taxed your brain so much. The mortgage companies PUSH interest only loans to consumers. Care to venture WHY???? Because they have a non-decreasing revenue stream coming in while the principal is outstanding. So what. It's good for the bank...but even better for me. Are you smart enough to do the math on exactly how much *principle* you're actually paying in the first 5 years of an $800000 mortgage at 4.25%? Yes. I'll get you started: No need. Payment (principle+interest)= $3935.52 Payment (interest only)= $2833.33 (Answer= $66,131.20) So at the end of 5 years, I'd owe $800,000...and the guy who paid principle owes $733, 868.80. Keep in mind that I'm putting that $66,131.20 into my wife's and my Simple IRA's instead of towards the principle of the house. Because it's a qualified plan, I saved $20k in Federal taxes over the schmuck who used the money to pay down the principle on his home. At the end of 5 years, he paid an extra $20k in taxes to the Feds, and owes $733, 868.80 on the home. At the end of 5 years, I put $66k into my simple IRA and paid $20k less to the government. Even if the house doesn't appreciate, and I get *ZERO* return on my investment in the Simple IRA, my net worth is ahead of his by $20k. If I get even a nominal 5% return on my Simple IRA per year, I'm even further ahead of the other guy. Paying principle on a loan is an opportunity cost. Again, mortgage companies are going out of their way to qualify people for interest only loans, and they wouldn't qualify for a conventional loan. Are you smart enough to know WHY mortgage brokers are pushing interest only loans so hard? Is it for YOUR welfare? Hell, might as well go one more. If you don't like paying down the equity in a home, get a reverse mortgage! Also, you see, when you get done in five years, you'll still have to get a mortgage for the original amount. Someone with a decent ARM would have at least some principal paid off, so his loan amount would be lower than yours, while his payments wouldn't be that much different for the first five years. |
John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. I don't know NYOB's situation, other than what I've read. I *do* know that he has given thought to his situation. That, in itself, is more than a lot of folks do. His plan makes sense. There may be those in the universe who have a better occupation, better place to live, and are better able to express their point of view. From my perspective, you haven't shown that you are one of them. Of course, that's just my opinion. -- John H So, if you pay someone to use their money, ie, a loan, it's superior to using your OWN money, and not having to pay interest rates? The bottom line is, if someone is taking money from you month after month, you are losing money. |
John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. |
On 23 Mar 2005 10:54:06 -0800, "basskisser" wrote:
John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. I don't know NYOB's situation, other than what I've read. I *do* know that he has given thought to his situation. That, in itself, is more than a lot of folks do. His plan makes sense. There may be those in the universe who have a better occupation, better place to live, and are better able to express their point of view. From my perspective, you haven't shown that you are one of them. Of course, that's just my opinion. -- John H So, if you pay someone to use their money, ie, a loan, it's superior to using your OWN money, and not having to pay interest rates? The bottom line is, if someone is taking money from you month after month, you are losing money. I just bought a new car, financed at 3.9%. I could have paid cash for the car, but instead chose to put the money in a five year CD paying 5%. In this case I'm paying someone (the credit union) to use its money while it's paying me *more* to use my money. Yes, depending on the circumstances, it may be 'superior' to pay for the use of someone else's money. -- John H "All decisions are the result of binary thinking." |
On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote:
John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? -- John H "All decisions are the result of binary thinking." |
"John H" wrote in message ... On 23 Mar 2005 10:54:06 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. I don't know NYOB's situation, other than what I've read. I *do* know that he has given thought to his situation. That, in itself, is more than a lot of folks do. His plan makes sense. There may be those in the universe who have a better occupation, better place to live, and are better able to express their point of view. From my perspective, you haven't shown that you are one of them. Of course, that's just my opinion. -- John H So, if you pay someone to use their money, ie, a loan, it's superior to using your OWN money, and not having to pay interest rates? The bottom line is, if someone is taking money from you month after month, you are losing money. I just bought a new car, financed at 3.9%. I could have paid cash for the car, but instead chose to put the money in a five year CD paying 5%. In this case I'm paying someone (the credit union) to use its money while it's paying me *more* to use my money. Yes, depending on the circumstances, it may be 'superior' to pay for the use of someone else's money. -- John H And in the case of those of us that are in the higher tier tax brackets, the tax deduction for the interest on your primary residence make the borrowed money even cheaper. A mortgage at 5% has a net cost of 3% in the top bracket.......a point that constantly goes over asslicker's head. Another good reason for borrowing......... I have clients that own many commercial properties.........they are constantly refinancing the properties (each is an L.L.C.) pulling as much equity as they can out of them, and distributing it to the partners. In that way, the L.L.C. has little to no assests in the event of a lawsuit. "All decisions are the result of binary thinking." |
"John H" wrote in message ... On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. -- John H "All decisions are the result of binary thinking." |
On Wed, 23 Mar 2005 14:22:04 -0500, "P.Fritz"
wrote: "John H" wrote in message .. . On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. I expect he'll get very mum on this subject shortly. -- John H "All decisions are the result of binary thinking." |
"John H" wrote in message ... On Wed, 23 Mar 2005 14:22:04 -0500, "P.Fritz" wrote: "John H" wrote in message . .. On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. I expect he'll get very mum on this subject shortly. I doubt it, he has been beating his head against the wall about this for months. I think the basic problem (besides him being the "King of the NG idiots") is that if you are in the low end tax bracket, it may not make economic sense. Those in the highest brackets can see the economic benefits clearly. Add to the above.........the choice of paying an extra 200 a month to your mortgage (money taken as income) or to your 401k (pretax).........you take the 200 a month as income, at 33% and you netting 130 to the principal..(likely less than that because of medicare tax and and state and local income tax) .....saving you 2-1/2% of that amount..........in the meantime you could have taken the entire 200 pretax in a 401 or SEP even at a modest return of 5% a year.....you are going to be even further ahead. -- John H "All decisions are the result of binary thinking." |
"basskisser" wrote in message oups.com... NOYB wrote: "basskisser" wrote in message oups.com... NOYB wrote: "basskisser" wrote in message oups.com... NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... Boy, you sure put a lot of thought into that reply. Sorry I taxed your brain so much. The mortgage companies PUSH interest only loans to consumers. Care to venture WHY???? Because they have a non-decreasing revenue stream coming in while the principal is outstanding. So what. It's good for the bank...but even better for me. Are you smart enough to do the math on exactly how much *principle* you're actually paying in the first 5 years of an $800000 mortgage at 4.25%? Yes. I'll get you started: No need. Payment (principle+interest)= $3935.52 Payment (interest only)= $2833.33 (Answer= $66,131.20) So at the end of 5 years, I'd owe $800,000...and the guy who paid principle owes $733, 868.80. Keep in mind that I'm putting that $66,131.20 into my wife's and my Simple IRA's instead of towards the principle of the house. Because it's a qualified plan, I saved $20k in Federal taxes over the schmuck who used the money to pay down the principle on his home. At the end of 5 years, he paid an extra $20k in taxes to the Feds, and owes $733, 868.80 on the home. At the end of 5 years, I put $66k into my simple IRA and paid $20k less to the government. Even if the house doesn't appreciate, and I get *ZERO* return on my investment in the Simple IRA, my net worth is ahead of his by $20k. If I get even a nominal 5% return on my Simple IRA per year, I'm even further ahead of the other guy. Paying principle on a loan is an opportunity cost. Again, mortgage companies are going out of their way to qualify people for interest only loans, and they wouldn't qualify for a conventional loan. That's bull****. The lenders use different debt-to-income ratios for interest only loans, but all of the other lending requirements are the same. Are you smart enough to know WHY mortgage brokers are pushing interest only loans so hard? Is it for YOUR welfare? Banks are willing to offer interest-only loans for this reason: they can lend more principle, which means they can collect more interest. If a customer can afford a $3000/month payment, the bank prefers that he spend all $3000 in interest. They make more profit than if the customer spends $2200 on interest and $800 on principle. The customer benefits by living in more house than he might be able to afford if he had to pay interest *and* principle. So both parties win. Hell, might as well go one more. If you don't like paying down the equity in a home, get a reverse mortgage! Eventually, when I retire, I will. Why die with a couple of million in equity tied up in a house? Also, you see, when you get done in five years, you'll still have to get a mortgage for the original amount. And the house will be worth $1.5 million. So I'll go secure a 20 year fixed mortgage for $800k...which means that I have more than a 45% equity position in my home. If I waited 5 years to buy the same house, I would have had to borrow $1.2 million...and I only would have had 20% equity in the same home. That means that my method will increase my net worth by $400k over your method. Someone with a decent ARM would have at least some principal paid off, so his loan amount would be lower than yours, while his payments wouldn't be that much different for the first five years. You're trying to tell me that there are better ARMs than a 5-year fixed at 4.25% for a jumbo non-conforming? LOL. You *are* the king! |
"basskisser" wrote in message oups.com... John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. I don't know NYOB's situation, other than what I've read. I *do* know that he has given thought to his situation. That, in itself, is more than a lot of folks do. His plan makes sense. There may be those in the universe who have a better occupation, better place to live, and are better able to express their point of view. From my perspective, you haven't shown that you are one of them. Of course, that's just my opinion. -- John H So, if you pay someone to use their money, ie, a loan, it's superior to using your OWN money, and not having to pay interest rates? The bottom line is, if someone is taking money from you month after month, you are losing money. Unless you hit the lottery, then the only way to get rich is on other people's money. You either inherit it...or borrow it. I'm borrowing it. |
"basskisser" wrote in message ups.com... John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. I lease or pay cash for depreciating assets, and finance appreciating ones. It's foolish to pay off an appreciating asset...particularly when the cost of money is as cheap as it is today. |
"John H" wrote in message ... On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, Actually, I'm using the money saved on the principle to fund my Simple IRA. I've been putting between $20-30k/year away in my wife's and my IRAs instead of pulling the money out to pay principle. If I didn't fund the pension plan, I'd be paying tax on the money...and the using the remainder to pay off only $13k per year off the principle. |
"P.Fritz" wrote in message ... "John H" wrote in message ... On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. That's a pretty good analogy. And why would a 34 year old buy a 2 1/2% bond? |
"NOYB" wrote in message k.net... "basskisser" wrote in message ups.com... John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. I lease or pay cash for depreciating assets, and finance appreciating ones. It's foolish to pay off an appreciating asset...particularly when the cost of money is as cheap as it is today. I finance one depreciating asset.....the boat.......but since it counts as second home....and those the interest is deductible....it is cheap money :-) |
"John H" wrote in message ... On Wed, 23 Mar 2005 14:22:04 -0500, "P.Fritz" wrote: "John H" wrote in message . .. On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. I expect he'll get very mum on this subject shortly. Now he's going to threaten you for bringing his mum into this. |
"P.Fritz" wrote in message ... "John H" wrote in message ... On Wed, 23 Mar 2005 14:22:04 -0500, "P.Fritz" wrote: "John H" wrote in message ... On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. I expect he'll get very mum on this subject shortly. I doubt it, he has been beating his head against the wall about this for months. I think the basic problem (besides him being the "King of the NG idiots") is that if you are in the low end tax bracket, it may not make economic sense. Those in the highest brackets can see the economic benefits clearly. Add to the above.........the choice of paying an extra 200 a month to your mortgage (money taken as income) or to your 401k (pretax).........you take the 200 a month as income, at 33% and you netting 130 to the principal..(likely less than that because of medicare tax and and state and local income tax) .....saving you 2-1/2% of that amount..........in the meantime you could have taken the entire 200 pretax in a 401 or SEP even at a modest return of 5% a year.....you are going to be even further ahead. Ding, ding, ding, ding. We have a winner! |
"NOYB" wrote in message k.net... "P.Fritz" wrote in message ... "John H" wrote in message ... On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. That's a pretty good analogy. And why would a 34 year old buy a 2 1/2% bond? I can't take credit for that.....it came from a financial planner. |
"P.Fritz" wrote in message ... "NOYB" wrote in message k.net... "basskisser" wrote in message ups.com... John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. I lease or pay cash for depreciating assets, and finance appreciating ones. It's foolish to pay off an appreciating asset...particularly when the cost of money is as cheap as it is today. I finance one depreciating asset.....the boat I probably will too one day when I upsize. Right now, both my boats are paid for. |
"NOYB" wrote in message .net... "P.Fritz" wrote in message ... "John H" wrote in message ... On Wed, 23 Mar 2005 14:22:04 -0500, "P.Fritz" wrote: "John H" wrote in message m... On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. I expect he'll get very mum on this subject shortly. I doubt it, he has been beating his head against the wall about this for months. I think the basic problem (besides him being the "King of the NG idiots") is that if you are in the low end tax bracket, it may not make economic sense. Those in the highest brackets can see the economic benefits clearly. Add to the above.........the choice of paying an extra 200 a month to your mortgage (money taken as income) or to your 401k (pretax).........you take the 200 a month as income, at 33% and you netting 130 to the principal..(likely less than that because of medicare tax and and state and local income tax) .....saving you 2-1/2% of that amount..........in the meantime you could have taken the entire 200 pretax in a 401 or SEP even at a modest return of 5% a year.....you are going to be even further ahead. Ding, ding, ding, ding. We have a winner! The funny thing is that asslciker claims to be self employed.......anybody that is self employed would realize the benefits of the pre tax investment (especially since they raise the limits of the SEP / 401K ) |
On Wed, 23 Mar 2005 21:30:33 GMT, "NOYB" wrote:
"John H" wrote in message .. . On Wed, 23 Mar 2005 14:22:04 -0500, "P.Fritz" wrote: "John H" wrote in message ... On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. I expect he'll get very mum on this subject shortly. Now he's going to threaten you for bringing his mum into this. Oh ****! I hadn't thought of that. -- John H "All decisions are the result of binary thinking." |
krause,, you were never connected,,,
I mean your own mother had 2 or 3 husbands, as you claimed. Your father, well, he arrived in the west, in the New York harbor to a fire boat spray. He crossed the Atlantic as you said in an outboard motor driven boat. lol,,, ouch,, What did he do krause?? pack a couple lunches? Have a couple suite cases? What was he running from krause,, hmmmmm interesting. But look at the product of these two specimens. You have grown up to destroy the family business, lose it, sold it all off and have nothing to show for it. While Papa krause was developing a family business for his children to carry on you joined two unions and preferred the union slob labor atmosphere for your career. But as soon as you had your chance to take over the family business, you liquidated it. lol,,, krause,,, what happened did the employees form a union and force you out of business? Or is that one of the union cards you hold,,, krause,, you were never connected. Real World??? wow,,, krause,,, you really have issues with the world,,, "HKrause" wrote in message ... Don White wrote: "Bert Robbins" wrote in message ... That attitude will keep you angry and bitter at the entire world. Huh??...................who's angry & bitter? I dunno, some of these rightie fellas are a bit disconnected from the real world, and others are a lot disconnected. |
P.Fritz wrote: "John H" wrote in message ... On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. Hmm, so, let's see, if I am debt free, ALL of my surplus money can be earning for me. If you are still in debt up to your ass, you don't have near the surplus money, because you are paying someone else to use their money. Hell, it's simple, even for you. Also, I see that you still don't have the mental capacity to debate a subject without childish name calling. Pretty pathetic. |
P.Fritz wrote: "NOYB" wrote in message .net... "P.Fritz" wrote in message ... "John H" wrote in message ... On Wed, 23 Mar 2005 14:22:04 -0500, "P.Fritz" wrote: "John H" wrote in message m... On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. I expect he'll get very mum on this subject shortly. I doubt it, he has been beating his head against the wall about this for months. I think the basic problem (besides him being the "King of the NG idiots") is that if you are in the low end tax bracket, it may not make economic sense. Those in the highest brackets can see the economic benefits clearly. Add to the above.........the choice of paying an extra 200 a month to your mortgage (money taken as income) or to your 401k (pretax).........you take the 200 a month as income, at 33% and you netting 130 to the principal..(likely less than that because of medicare tax and and state and local income tax) .....saving you 2-1/2% of that amount..........in the meantime you could have taken the entire 200 pretax in a 401 or SEP even at a modest return of 5% a year.....you are going to be even further ahead. Ding, ding, ding, ding. We have a winner! The funny thing is that asslciker claims to be self employed.......anybody that is self employed would realize the benefits of the pre tax investment (especially since they raise the limits of the SEP / 401K ) Uh, please, Fritz, show where I've ever said I didn't have any investments? If I am debt free, I'll have more surplus money TO invest, plain and simple. |
NOYB wrote: "John H" wrote in message ... On Wed, 23 Mar 2005 14:22:04 -0500, "P.Fritz" wrote: "John H" wrote in message . .. On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. I expect he'll get very mum on this subject shortly. Now he's going to threaten you for bringing his mum into this. You ARE an idiot, aren't you? |
"basskisser" wrote in message oups.com... NOYB wrote: "John H" wrote in message ... On Wed, 23 Mar 2005 14:22:04 -0500, "P.Fritz" wrote: "John H" wrote in message . .. On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. I expect he'll get very mum on this subject shortly. Now he's going to threaten you for bringing his mum into this. You ARE an idiot, aren't you? Just 12 minutes prior to you calling NOYB an idiot you posted this: "I see you still aren't smart enough to debate a subject without childish name calling. " Do you see a problem here Kevin? |
"basskisser" wrote in message oups.com... P.Fritz wrote: "NOYB" wrote in message .net... "P.Fritz" wrote in message ... "John H" wrote in message ... On Wed, 23 Mar 2005 14:22:04 -0500, "P.Fritz" wrote: "John H" wrote in message m... On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. I expect he'll get very mum on this subject shortly. I doubt it, he has been beating his head against the wall about this for months. I think the basic problem (besides him being the "King of the NG idiots") is that if you are in the low end tax bracket, it may not make economic sense. Those in the highest brackets can see the economic benefits clearly. Add to the above.........the choice of paying an extra 200 a month to your mortgage (money taken as income) or to your 401k (pretax).........you take the 200 a month as income, at 33% and you netting 130 to the principal..(likely less than that because of medicare tax and and state and local income tax) .....saving you 2-1/2% of that amount..........in the meantime you could have taken the entire 200 pretax in a 401 or SEP even at a modest return of 5% a year.....you are going to be even further ahead. Ding, ding, ding, ding. We have a winner! The funny thing is that asslciker claims to be self employed.......anybody that is self employed would realize the benefits of the pre tax investment (especially since they raise the limits of the SEP / 401K ) Uh, please, Fritz, show where I've ever said I didn't have any investments? If I am debt free, I'll have more surplus money TO invest, plain and simple. Investing money 17 years from now when your mortgage is paid off will do you very little good. You'll be missing 17 years of compounding interest. You keep forgetting that your house is an investment that continues to grow in value even if you don't pay one dime in principle. Conversely, your pension plan needs a constant influx of money in order to reach a value that can sustain you in your retirement. |
"basskisser" wrote in message ups.com... P.Fritz wrote: "John H" wrote in message ... On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. Hmm, so, let's see, if I am debt free, ALL of my surplus money can be earning for me. But you won't be debt free for 17 years, and by that time you'll be just a few short years from retirement. Even if you save 75% of your salary for those few short years, you'll have missed out on 17 years of compounding interest. Haven't you ever seen the example where two people contribute $2000/year to their simple IRA for equal number of years? The first guy starts contributing at age 18, and the second guy waits until age 30 to start his contributions. They both contribute the same net amount (I think the example that I saw was $2000 per year for 16 years...meaning each contributed $32000). By age 62, and despite equal amounts of contributions, the first guy has four times as much in his retirement fund than the second guy. If you are still in debt up to your ass, you don't have near the surplus money, because you are paying someone else to use their money. Hell, it's simple, even for you. Also, I see that you still don't have the mental capacity to debate a subject without childish name calling. Pretty pathetic. You mean like calling me stupid? |
"NOYB" wrote in message .net... "basskisser" wrote in message oups.com... P.Fritz wrote: "NOYB" wrote in message .net... "P.Fritz" wrote in message ... "John H" wrote in message ... On Wed, 23 Mar 2005 14:22:04 -0500, "P.Fritz" wrote: "John H" wrote in message m... On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. I expect he'll get very mum on this subject shortly. I doubt it, he has been beating his head against the wall about this for months. I think the basic problem (besides him being the "King of the NG idiots") is that if you are in the low end tax bracket, it may not make economic sense. Those in the highest brackets can see the economic benefits clearly. Add to the above.........the choice of paying an extra 200 a month to your mortgage (money taken as income) or to your 401k (pretax).........you take the 200 a month as income, at 33% and you netting 130 to the principal..(likely less than that because of medicare tax and and state and local income tax) .....saving you 2-1/2% of that amount..........in the meantime you could have taken the entire 200 pretax in a 401 or SEP even at a modest return of 5% a year.....you are going to be even further ahead. Ding, ding, ding, ding. We have a winner! The funny thing is that asslciker claims to be self employed.......anybody that is self employed would realize the benefits of the pre tax investment (especially since they raise the limits of the SEP / 401K ) Uh, please, Fritz, show where I've ever said I didn't have any investments? If I am debt free, I'll have more surplus money TO invest, plain and simple. Investing money 17 years from now when your mortgage is paid off will do you very little good. You'll be missing 17 years of compounding interest. You keep forgetting that your house is an investment that continues to grow in value even if you don't pay one dime in principle. Conversely, your pension plan needs a constant influx of money in order to reach a value that can sustain you in your retirement. That boy continues to prove he is dumber than a tree stump |
"NOYB" wrote in message k.net... "basskisser" wrote in message ups.com... P.Fritz wrote: "John H" wrote in message ... On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. Hmm, so, let's see, if I am debt free, ALL of my surplus money can be earning for me. But you won't be debt free for 17 years, and by that time you'll be just a few short years from retirement. Even if you save 75% of your salary for those few short years, you'll have missed out on 17 years of compounding interest. Haven't you ever seen the example where two people contribute $2000/year to their simple IRA for equal number of years? The first guy starts contributing at age 18, and the second guy waits until age 30 to start his contributions. They both contribute the same net amount (I think the example that I saw was $2000 per year for 16 years...meaning each contributed $32000). By age 62, and despite equal amounts of contributions, the first guy has four times as much in his retirement fund than the second guy. If you are still in debt up to your ass, you don't have near the surplus money, because you are paying someone else to use their money. Hell, it's simple, even for you. Also, I see that you still don't have the mental capacity to debate a subject without childish name calling. Pretty pathetic. You mean like calling me stupid? Once again, asslicker proves why he is te "King of the NG idiots" He is so dense, he will never comprehend the simple economics of the issue. |
JimH wrote: "basskisser" wrote in message oups.com... NOYB wrote: "John H" wrote in message ... On Wed, 23 Mar 2005 14:22:04 -0500, "P.Fritz" wrote: "John H" wrote in message . .. On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. I expect he'll get very mum on this subject shortly. Now he's going to threaten you for bringing his mum into this. You ARE an idiot, aren't you? Just 12 minutes prior to you calling NOYB an idiot you posted this: "I see you still aren't smart enough to debate a subject without childish name calling. " Do you see a problem here Kevin? the only problem I see is my name isn't Kevin. The only other problem I see is the fact that when NOYB, and others are found out to be ignorant of fact, they almost INSTANTLY come up with something like a statement about someone's mother. Do you think that is prudent? Do you think that prudent of a man who thinks he's oh so perfect, an alleged professional? Now please notice that I didn't CALL NOYB a name, like, say....ummm Toothwhore. I simply made a judgement. Now, where were you when JimH, and Fritz were posting lie, after lie about ME? Did you think THAT would be the way someone with intelligence should act? |
NOYB wrote: "basskisser" wrote in message ups.com... P.Fritz wrote: "John H" wrote in message ... On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. Hmm, so, let's see, if I am debt free, ALL of my surplus money can be earning for me. But you won't be debt free for 17 years, and by that time you'll be just a few short years from retirement. Even if you save 75% of your salary for those few short years, you'll have missed out on 17 years of compounding interest. Haven't you ever seen the example where two people contribute $2000/year to their simple IRA for equal number of years? The first guy starts contributing at age 18, and the second guy waits until age 30 to start his contributions. They both contribute the same net amount (I think the example that I saw was $2000 per year for 16 years...meaning each contributed $32000). By age 62, and despite equal amounts of contributions, the first guy has four times as much in his retirement fund than the second guy. If you are still in debt up to your ass, you don't have near the surplus money, because you are paying someone else to use their money. Hell, it's simple, even for you. Also, I see that you still don't have the mental capacity to debate a subject without childish name calling. Pretty pathetic. You mean like calling me stupid? No, I said you were an idiot. I didn't call you Idiot. |
P.Fritz wrote: "NOYB" wrote in message .net... "basskisser" wrote in message oups.com... P.Fritz wrote: "NOYB" wrote in message .net... "P.Fritz" wrote in message ... "John H" wrote in message ... On Wed, 23 Mar 2005 14:22:04 -0500, "P.Fritz" wrote: "John H" wrote in message m... On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. I expect he'll get very mum on this subject shortly. I doubt it, he has been beating his head against the wall about this for months. I think the basic problem (besides him being the "King of the NG idiots") is that if you are in the low end tax bracket, it may not make economic sense. Those in the highest brackets can see the economic benefits clearly. Add to the above.........the choice of paying an extra 200 a month to your mortgage (money taken as income) or to your 401k (pretax).........you take the 200 a month as income, at 33% and you netting 130 to the principal..(likely less than that because of medicare tax and and state and local income tax) .....saving you 2-1/2% of that amount..........in the meantime you could have taken the entire 200 pretax in a 401 or SEP even at a modest return of 5% a year.....you are going to be even further ahead. Ding, ding, ding, ding. We have a winner! The funny thing is that asslciker claims to be self employed.......anybody that is self employed would realize the benefits of the pre tax investment (especially since they raise the limits of the SEP / 401K ) Uh, please, Fritz, show where I've ever said I didn't have any investments? If I am debt free, I'll have more surplus money TO invest, plain and simple. Investing money 17 years from now when your mortgage is paid off will do you very little good. You'll be missing 17 years of compounding interest. You keep forgetting that your house is an investment that continues to grow in value even if you don't pay one dime in principle. Conversely, your pension plan needs a constant influx of money in order to reach a value that can sustain you in your retirement. That boy continues to prove he is dumber than a tree stump "That boy"? And you have the audacity to call someone else dumb? |
"basskisser" wrote in message ups.com... JimH wrote: "basskisser" wrote in message oups.com... NOYB wrote: "John H" wrote in message ... On Wed, 23 Mar 2005 14:22:04 -0500, "P.Fritz" wrote: "John H" wrote in message . .. On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. I expect he'll get very mum on this subject shortly. Now he's going to threaten you for bringing his mum into this. You ARE an idiot, aren't you? Just 12 minutes prior to you calling NOYB an idiot you posted this: "I see you still aren't smart enough to debate a subject without childish name calling. " Do you see a problem here Kevin? the only problem I see is my name isn't Kevin. The only other problem I see is the fact that when NOYB, and others are found out to be ignorant of fact, they almost INSTANTLY come up with something like a statement about someone's mother. Do you think that is prudent? Do you think that prudent of a man who thinks he's oh so perfect, an alleged professional? Now please notice that I didn't CALL NOYB a name, like, say....ummm Toothwhore. I simply made a judgement. Now, where were you when JimH, and Fritz were posting lie, after lie about ME? Did you think THAT would be the way someone with intelligence should act? Pssst....I *am* JimH....and I apologized to you....remember? Now you pledged to stop the name calling. Are you going to break your promise Kevin? |
P.Fritz wrote: "NOYB" wrote in message k.net... "basskisser" wrote in message ups.com... P.Fritz wrote: "John H" wrote in message ... On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. Hmm, so, let's see, if I am debt free, ALL of my surplus money can be earning for me. But you won't be debt free for 17 years, and by that time you'll be just a few short years from retirement. Even if you save 75% of your salary for those few short years, you'll have missed out on 17 years of compounding interest. Haven't you ever seen the example where two people contribute $2000/year to their simple IRA for equal number of years? The first guy starts contributing at age 18, and the second guy waits until age 30 to start his contributions. They both contribute the same net amount (I think the example that I saw was $2000 per year for 16 years...meaning each contributed $32000). By age 62, and despite equal amounts of contributions, the first guy has four times as much in his retirement fund than the second guy. If you are still in debt up to your ass, you don't have near the surplus money, because you are paying someone else to use their money. Hell, it's simple, even for you. Also, I see that you still don't have the mental capacity to debate a subject without childish name calling. Pretty pathetic. You mean like calling me stupid? Once again, asslicker proves why he is te "King of the NG idiots" He is so dense, he will never comprehend the simple economics of the issue. My, my, for someone who thinks I'm dense, you sure seem enamored with me! You never fail to follow me around the newsgroup. |
"basskisser" wrote in message ups.com... NOYB wrote: "basskisser" wrote in message ups.com... P.Fritz wrote: "John H" wrote in message ... On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. Hmm, so, let's see, if I am debt free, ALL of my surplus money can be earning for me. But you won't be debt free for 17 years, and by that time you'll be just a few short years from retirement. Even if you save 75% of your salary for those few short years, you'll have missed out on 17 years of compounding interest. Haven't you ever seen the example where two people contribute $2000/year to their simple IRA for equal number of years? The first guy starts contributing at age 18, and the second guy waits until age 30 to start his contributions. They both contribute the same net amount (I think the example that I saw was $2000 per year for 16 years...meaning each contributed $32000). By age 62, and despite equal amounts of contributions, the first guy has four times as much in his retirement fund than the second guy. If you are still in debt up to your ass, you don't have near the surplus money, because you are paying someone else to use their money. Hell, it's simple, even for you. Also, I see that you still don't have the mental capacity to debate a subject without childish name calling. Pretty pathetic. You mean like calling me stupid? No, I said you were an idiot. I didn't call you Idiot. Un-fricken-believable. |
On 24 Mar 2005 05:27:12 -0800, "basskisser" wrote:
NOYB wrote: "John H" wrote in message ... On Wed, 23 Mar 2005 14:22:04 -0500, "P.Fritz" wrote: "John H" wrote in message . .. On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message roups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. I expect he'll get very mum on this subject shortly. Now he's going to threaten you for bringing his mum into this. You ARE an idiot, aren't you? Well, you did get pretty mum, as far as my responses to you went. -- John H "All decisions are the result of binary thinking." |
"basskisser" wrote in message oups.com... You ARE an idiot, aren't you? Is it necessary to use childish name calling? |
"JimH" wrote in message ... "basskisser" wrote in message ups.com... NOYB wrote: "basskisser" wrote in message ups.com... P.Fritz wrote: "John H" wrote in message ... On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message oups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. Hmm, so, let's see, if I am debt free, ALL of my surplus money can be earning for me. But you won't be debt free for 17 years, and by that time you'll be just a few short years from retirement. Even if you save 75% of your salary for those few short years, you'll have missed out on 17 years of compounding interest. Haven't you ever seen the example where two people contribute $2000/year to their simple IRA for equal number of years? The first guy starts contributing at age 18, and the second guy waits until age 30 to start his contributions. They both contribute the same net amount (I think the example that I saw was $2000 per year for 16 years...meaning each contributed $32000). By age 62, and despite equal amounts of contributions, the first guy has four times as much in his retirement fund than the second guy. If you are still in debt up to your ass, you don't have near the surplus money, because you are paying someone else to use their money. Hell, it's simple, even for you. Also, I see that you still don't have the mental capacity to debate a subject without childish name calling. Pretty pathetic. You mean like calling me stupid? No, I said you were an idiot. I didn't call you Idiot. Un-fricken-believable. THat why he remains "King of the NG idiots" |
"John H" wrote in message ... On 24 Mar 2005 05:27:12 -0800, "basskisser" wrote: NOYB wrote: "John H" wrote in message ... On Wed, 23 Mar 2005 14:22:04 -0500, "P.Fritz" wrote: "John H" wrote in message . .. On 23 Mar 2005 10:57:44 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 09:44:18 -0800, "basskisser" wrote: John H wrote: On 23 Mar 2005 05:01:54 -0800, "basskisser" wrote: NOYB wrote: wrote in message groups.com... But, I thought that you had to get an interest only loan????? The bank was offering me either loan...conventional, or interest-only. I chose the interest only loan over the conventional 30-year fixed, because it gives me the option to pay principal on the loan (but only if *I *decide to do so). Right now, it makes more sense for me to put $25-30k per year away in a qualified pension plan than to pay principal on a home mortgage. In 4 1/2 years, I'll only be 38...and I'll have an extra $6000/mo (before taxes) to put towards principal and/or retirement savings. At that time, I can get a 20 year conventional fixed mortgage, and pay the home off before I'm 60. Yeah, sure, whatever....... basskisser, is that the best you can do when you see a good idea put in place? -- John H No, but you know how NOYB is, no sense in trying to make him think anything other than what he does, says, where he lives, his occupation, his thoughts, and on and on, are anything less than superior to anyone else in the universe. Just ask him! Now, as far as a "good idea", he's admitted himself that he is financially stretched tight. My daughter has commented to me about having a negative balance, on occasion, in my checkbook. To her, who has bounced a check to me, this was really something to 'catch her dad' with. There are times when it is beneficial to one's longer term interests to be somewhat 'stretched tight'. That is not, necessarily, a sign of bad financial management. I financed my house for 15 years instead of 30. The additional payment amount stretched me a little more than I had been, but I think that the long term benefits will be worth the stretch. Ah, now, paying off a loan quickly is right the opposite of an interest only loan! You are purposefully paying off the principal quicker, while he isn't paying ANY of it off. I've got a 30 year fixed, and it will be paid off in 17 years because of extra payments applied directly to the principal. I don't care what anybody says, I don't like being in debt. I don't take out car loans, I save until I have cash to buy a car, therefore I don't pay anybody to use their money. Same principal. Well, once you read my other post you'll see why your idea isn't necessarily the best. If he us using the money he saved on the principle of the home loan to pay off the business loan (with perhaps a higher interest rate) sooner, then it seems as though he's doing a smart thing. Wouldn't you think that he knows more about his finances than you do? A tree stump knows more about finances than the "King" Paying off the house early is like buying a 2-1/2% bond. I expect he'll get very mum on this subject shortly. Now he's going to threaten you for bringing his mum into this. You ARE an idiot, aren't you? Well, you did get pretty mum, as far as my responses to you went. And I wonder is asslciker has stopped beating his wife? ;-) -- John H "All decisions are the result of binary thinking." |
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