"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 )