Financial question...
 

On Thu, 21 Aug 2008 01:12:26 GMT, Short Wave Sportfishing
wrote:

On Wed, 20 Aug 2008 20:27:53 -0400, John H.
salmonremovebait@gmaildotcom wrote:

Thanks again, Tom.

Anytime.

My bill is in the mail - cash will be fine. :)

Which country?

Financial question...
 

On Wed, 20 Aug 2008 20:48:11 -0400, Wayne.B
wrote:

On Wed, 20 Aug 2008 17:28:03 -0400, John H.
salmonremovebait@gmaildotcom wrote:

I've never understood the advice to pay interest for the tax break. Where
is the break in giving away $1 to get 30 cents back? Seems like 70 cents
got lost there somewhere.

I can understand holding debt while building a savings account, but once
the cushion exists, I can't see the reason for it.

It's all a business decision. The interest you pay on a loan is the
cost of renting money. For certain types of loans like a home
mortgage or a broker's margin loan, you get to deduct the interest
payments. How much that deduction is worth depends on your tax
situation but the net effect is to reduce the effective cost of your
money "rental".

The next part of the equation is how much you can reasonably expect to
earn with the rented money. That depends on your skill as an investor
and what happens to the economy going forward. If you can reliably
make an annual return from your investments greater than youur
effective (after tax) cost of borrowing, then you come out ahead. The
downside is that if your investments don't work out you still owe the
money that you borrowed. That's the magic world of leverage,
wonderful on the way up, miserable going the other way.

Well yeah, but what do you see in the economy going forward?

Financial question...
 

"John H." salmonremovebait@gmaildotcom wrote in message
...
Would it be a wise move to take out a loan on your home to buy stocks?

Would it be a wise move to sell stocks to pay off a loan on your home?
--
** Good Day! **

John H

No. The return on stocks is not enough greater overall than the interest
rates at the present time. If you are going to risk capitol, at least get a
good rate of return.

Financial question...
 

On Wed, 20 Aug 2008 21:49:52 -0400, John H.
salmonremovebait@gmaildotcom wrote:

On Thu, 21 Aug 2008 01:12:26 GMT, Short Wave Sportfishing
wrote:

On Wed, 20 Aug 2008 20:27:53 -0400, John H.
salmonremovebait@gmaildotcom wrote:

Thanks again, Tom.

Anytime.

My bill is in the mail - cash will be fine. :)

Which country?

São Tomé and Príncipe dobra

Financial question...
 

On Wed, 20 Aug 2008 21:50:35 -0400, John H.
salmonremovebait@gmaildotcom wrote:

Well yeah, but what do you see in the economy going forward?

No one knows for sure. Long term it always recovers but the timing is
uncertain as is the sector rotation. The keys to investment success
are not really a secret:

1. Good solid companies that have been around a while and pay
dividends.

2. A widely diversified portfolio.

3. A track record of competent management and building shareholder
value.

4. Good value vs assets and future income stream.

Trying to time market tops and bottoms is a risky game. Picking good
companies at a good value is easier. I continue to like the big
integrated oils over the long term as well as some of the exploration
and drilling companies. None of them will double your money in 6
months but you really shouldn't be trying to do that.

Financial question...
 

On Wed, 20 Aug 2008 22:32:21 -0400, Wayne.B
wrote:

On Wed, 20 Aug 2008 21:50:35 -0400, John H.
salmonremovebait@gmaildotcom wrote:

Well yeah, but what do you see in the economy going forward?

No one knows for sure. Long term it always recovers but the timing is
uncertain as is the sector rotation. The keys to investment success
are not really a secret:

1. Good solid companies that have been around a while and pay
dividends.

IBM.

2. A widely diversified portfolio.

IBM.

3. A track record of competent management and building shareholder
value.

IBM.

4. Good value vs assets and future income stream.

IBM.

Trying to time market tops and bottoms is a risky game. Picking good
companies at a good value is easier. I continue to like the big
integrated oils over the long term as well as some of the exploration
and drilling companies. None of them will double your money in 6
months but you really shouldn't be trying to do that.

IBM.

~~ snerk ~~

Financial question...
 

"Wayne.B" wrote in message
...
On Wed, 20 Aug 2008 21:50:35 -0400, John H.
salmonremovebait@gmaildotcom wrote:

Well yeah, but what do you see in the economy going forward?

No one knows for sure. Long term it always recovers but the timing is
uncertain as is the sector rotation. The keys to investment success
are not really a secret:

1. Good solid companies that have been around a while and pay
dividends.

2. A widely diversified portfolio.

3. A track record of competent management and building shareholder
value.

4. Good value vs assets and future income stream.

Trying to time market tops and bottoms is a risky game. Picking good
companies at a good value is easier. I continue to like the big
integrated oils over the long term as well as some of the exploration
and drilling companies. None of them will double your money in 6
months but you really shouldn't be trying to do that.



We never played in the stock market at all until about 8 years ago. At that
time we decided to take a small amount of money and try our hand. Not
knowing anything about it, we bought stock in about 6 technology based
companies ... two that were highly speculative, high risk, and four that
were larger companies that although they had been around for a while, were
suffering from the telecom fiasco and the stock prices were at a low. I was
familiar with the companies and felt that the four still had promise in the
future, once they recovered.

The two high risk companies have long since gone belly up. But the other
four have recovered nicely, one in particular, and, even now in the current
slump, we have almost quadrupled our total, initial investment including the
losses associated with the two that went belly up.

Eisboch

Financial question...
 

"Don White" wrote in message
...

"D.Duck" wrote in message
...

"John H." salmonremovebait@gmaildotcom wrote in message
...
On Wed, 20 Aug 2008 16:26:27 -0500, Vic Smith
wrote:

On Wed, 20 Aug 2008 17:11:31 -0400, John H.
salmonremovebait@gmaildotcom wrote:



I'm not talking about taking money out of savings (CDs), but about
selling
stocks. I believe the interest earned on CDs is taxable in the year
earned,
not when the CD matures.

Yeah, but you have cap gains taxes on stock, no?
I' was talking IRA CD's, which are taxed as current year income.
Anyway, on the CD's, once you figure the tax hit and interest lost,
and figure the interest saved on the home note, there you are.
Easy.
With your situation, there's the potential of the stocks to increase
or decrease in value, and any known dividends. Future valuation
can't be determined.
One piece of advice I can give is "psychological."
If you sell the stocks, don't bother checking their performance
afterwards. It could hurt, or it could make you smile, but it doesn't
matter. Every day is a new day.

--Vic

If stocks rise more than 5 1/8% per year, then selling would be a bad
idea.
(Actually, since the tax on capital gains is less than the tax on earned
interest, the % could be a little less.) The CDs I have are currently
doing
better than the interest rate I'm paying, so they won't be used.

The decision is very dependant on what the future may hold for the stock
market.
--
** Good Day! **

John H

Don't bet your farm on the Market. It runs in cycles and historically
returns an *average* of about 10%/year. No one knows when the next
up-cycle will begin.

Not to worry though, according the Mayan calendar these problems will all
be a mute point in 2012. 8)

Dec 21 2012... and not only the myans came up with that time period.
The Chinese, a Sybol? in Greece etc.
We have four years and 4 months exactly.

Look on the upside. It would also be the end of rec.boats.

Financial question...
 

"JimH" wrote in message
...
On Aug 20, 9:12 pm, Short Wave Sportfishing
wrote:
On Wed, 20 Aug 2008 20:27:53 -0400, John H.

salmonremovebait@gmaildotcom wrote:
Thanks again, Tom.

Anytime.

My bill is in the mail - cash will be fine. :)

Make sure you get a receipt!


Talking about financial experts, don't you usually get a receipt of money
expended, not received?

Financial question...
 

"D.Duck" wrote in message
...

"Don White" wrote in message
...


Dec 21 2012... and not only the myans came up with that time period.
The Chinese, a Sybol? in Greece etc.
We have four years and 4 months exactly.



Look on the upside. It would also be the end of rec.boats.



The last post will be, "Ping, Harry .... tried to warn 'em. Regards,
Larry"


Eisboch

Financial question...
 

Eisboch wrote:
"D.Duck" wrote in message
...
"Don White" wrote in message
...

Dec 21 2012... and not only the myans came up with that time period.
The Chinese, a Sybol? in Greece etc.
We have four years and 4 months exactly.


Look on the upside. It would also be the end of rec.boats.



The last post will be, "Ping, Harry .... tried to warn 'em. Regards,
Larry"


Eisboch



You can thank "reggie" for "ending" rec.boats

Financial question...
 

On Wed, 20 Aug 2008 22:32:21 -0400, Wayne.B
wrote:

On Wed, 20 Aug 2008 21:50:35 -0400, John H.
salmonremovebait@gmaildotcom wrote:

Well yeah, but what do you see in the economy going forward?

No one knows for sure. Long term it always recovers but the timing is
uncertain as is the sector rotation. The keys to investment success
are not really a secret:

1. Good solid companies that have been around a while and pay
dividends.

2. A widely diversified portfolio.

3. A track record of competent management and building shareholder
value.

4. Good value vs assets and future income stream.

Trying to time market tops and bottoms is a risky game. Picking good
companies at a good value is easier. I continue to like the big
integrated oils over the long term as well as some of the exploration
and drilling companies. None of them will double your money in 6
months but you really shouldn't be trying to do that.

You're giving me the standard spiel, and I'm not arguing that. The big
question is whether the next few years will show a gain in the 6% plus
range. If not, then I'm better off without the debt.

I'm not trying to 'time the market' as far as selling high and buying low.
I would be selling because I wanted to sell. As it happens, I'd be selling
when the market is low.

Thanks for the input, Wayne.

Financial question...
 

On Wed, 20 Aug 2008 23:46:12 -0400, "Eisboch" wrote:


"Wayne.B" wrote in message
.. .
On Wed, 20 Aug 2008 21:50:35 -0400, John H.
salmonremovebait@gmaildotcom wrote:

Well yeah, but what do you see in the economy going forward?

No one knows for sure. Long term it always recovers but the timing is
uncertain as is the sector rotation. The keys to investment success
are not really a secret:

1. Good solid companies that have been around a while and pay
dividends.

2. A widely diversified portfolio.

3. A track record of competent management and building shareholder
value.

4. Good value vs assets and future income stream.

Trying to time market tops and bottoms is a risky game. Picking good
companies at a good value is easier. I continue to like the big
integrated oils over the long term as well as some of the exploration
and drilling companies. None of them will double your money in 6
months but you really shouldn't be trying to do that.



We never played in the stock market at all until about 8 years ago. At that
time we decided to take a small amount of money and try our hand. Not
knowing anything about it, we bought stock in about 6 technology based
companies ... two that were highly speculative, high risk, and four that
were larger companies that although they had been around for a while, were
suffering from the telecom fiasco and the stock prices were at a low. I was
familiar with the companies and felt that the four still had promise in the
future, once they recovered.

The two high risk companies have long since gone belly up. But the other
four have recovered nicely, one in particular, and, even now in the current
slump, we have almost quadrupled our total, initial investment including the
losses associated with the two that went belly up.

Eisboch


So what are the companies which have done well? I'm assuming you continue
to hold them because you believe they'll continue to do well.

Financial question...
 

"John H." salmonremovebait@gmaildotcom wrote in message
...


So what are the companies which have done well? I'm assuming you continue
to hold them because you believe they'll continue to do well.

Our largest holdings are in Corning (GLW). We bought at a serious dip,
shortly after telecom blew up at under 3 bucks.
It recovered to the high 20's, now has pulled back a bit to the low 20's.

The others are in related technology areas. I pick and choose myself,
based on my knowledge of the technology and what I believe it has as a
future. Optical stuff, mostly.

And yes, we will hold them. I really don't fret or worry about them.

Eisboch

Financial question...
 

"Eisboch" wrote in message
...

"D.Duck" wrote in message
...

"Don White" wrote in message
...


Dec 21 2012... and not only the myans came up with that time period.
The Chinese, a Sybol? in Greece etc.
We have four years and 4 months exactly.



Look on the upside. It would also be the end of rec.boats.



The last post will be, "Ping, Harry .... tried to warn 'em. Regards,
Larry"


Eisboch

ROTFL....

Financial question...
 

On Thu, 21 Aug 2008 06:56:30 -0400, "Eisboch" wrote:


"John H." salmonremovebait@gmaildotcom wrote in message
.. .


So what are the companies which have done well? I'm assuming you continue
to hold them because you believe they'll continue to do well.

Our largest holdings are in Corning (GLW). We bought at a serious dip,
shortly after telecom blew up at under 3 bucks.
It recovered to the high 20's, now has pulled back a bit to the low 20's.

The others are in related technology areas. I pick and choose myself,
based on my knowledge of the technology and what I believe it has as a
future. Optical stuff, mostly.

And yes, we will hold them. I really don't fret or worry about them.

Eisboch


It seems that you, like most people, are hesitant about giving out the
names of companies that are doing well. I've wondered about that. If you
told folks the names, and the folks went out and bought the stock, then the
demand for the stock, and therefore the price, would go up. No? So it would
seem to be in a holder's best interests to always divulge the name of a
stock that's doing well for them.

Financial question...
 

"John H." salmonremovebait@gmaildotcom wrote in message
...
On Thu, 21 Aug 2008 06:56:30 -0400, "Eisboch" wrote:


"John H." salmonremovebait@gmaildotcom wrote in message
. ..


So what are the companies which have done well? I'm assuming you
continue
to hold them because you believe they'll continue to do well.

Our largest holdings are in Corning (GLW). We bought at a serious dip,
shortly after telecom blew up at under 3 bucks.
It recovered to the high 20's, now has pulled back a bit to the low 20's.

The others are in related technology areas. I pick and choose myself,
based on my knowledge of the technology and what I believe it has as a
future. Optical stuff, mostly.

And yes, we will hold them. I really don't fret or worry about them.

Eisboch


It seems that you, like most people, are hesitant about giving out the
names of companies that are doing well. I've wondered about that. If you
told folks the names, and the folks went out and bought the stock, then
the
demand for the stock, and therefore the price, would go up. No? So it
would
seem to be in a holder's best interests to always divulge the name of a
stock that's doing well for them.

True, but the opposite can happen as well and then you risk ****ing people
off.
I don't listen to "tips" nor do I give them. I do my own homework.

I mentioned one that we hold because I think it's a fairly safe bet, long
term.
The others are a bit more risky, but potentially have big returns.

Eisboch

Financial question...
 

On Thu, 21 Aug 2008 07:35:47 -0400, "Eisboch" wrote:


"John H." salmonremovebait@gmaildotcom wrote in message
.. .
On Thu, 21 Aug 2008 06:56:30 -0400, "Eisboch" wrote:


"John H." salmonremovebait@gmaildotcom wrote in message
...


So what are the companies which have done well? I'm assuming you
continue
to hold them because you believe they'll continue to do well.

Our largest holdings are in Corning (GLW). We bought at a serious dip,
shortly after telecom blew up at under 3 bucks.
It recovered to the high 20's, now has pulled back a bit to the low 20's.

The others are in related technology areas. I pick and choose myself,
based on my knowledge of the technology and what I believe it has as a
future. Optical stuff, mostly.

And yes, we will hold them. I really don't fret or worry about them.

Eisboch


It seems that you, like most people, are hesitant about giving out the
names of companies that are doing well. I've wondered about that. If you
told folks the names, and the folks went out and bought the stock, then
the
demand for the stock, and therefore the price, would go up. No? So it
would
seem to be in a holder's best interests to always divulge the name of a
stock that's doing well for them.

True, but the opposite can happen as well and then you risk ****ing people
off.
I don't listen to "tips" nor do I give them. I do my own homework.

I mentioned one that we hold because I think it's a fairly safe bet, long
term.
The others are a bit more risky, but potentially have big returns.

Eisboch


Ah, hadn't thought about the '****ing people off' side. I figure people
take their chances. Intel did very well by me for a long time.

Financial question...
 

On Thu, 21 Aug 2008 07:32:30 -0400, John H.
salmonremovebait@gmaildotcom wrote:

On Thu, 21 Aug 2008 06:56:30 -0400, "Eisboch" wrote:


"John H." salmonremovebait@gmaildotcom wrote in message
. ..


So what are the companies which have done well? I'm assuming you continue
to hold them because you believe they'll continue to do well.

Our largest holdings are in Corning (GLW). We bought at a serious dip,
shortly after telecom blew up at under 3 bucks.
It recovered to the high 20's, now has pulled back a bit to the low 20's.

The others are in related technology areas. I pick and choose myself,
based on my knowledge of the technology and what I believe it has as a
future. Optical stuff, mostly.

And yes, we will hold them. I really don't fret or worry about them.

It seems that you, like most people, are hesitant about giving out the
names of companies that are doing well. I've wondered about that. If you
told folks the names, and the folks went out and bought the stock, then the
demand for the stock, and therefore the price, would go up. No? So it would
seem to be in a holder's best interests to always divulge the name of a
stock that's doing well for them.

It's personal - Eisboch could give you the list and it wouldn't work
for you - different circumstances, different people.

For me, over the years, I've made a ton bying, holding and taking
profits from IBM. My strategy has been to keep my base number of
shares and buy and sell above and beyond that. I take ten percent of
any profit and reinvest it at the dips into IBM keeping that stake
seperate from the original holdings. I've never touched the original
holdings - ever. I've borrowed against them to start the process, but
once the ball got rolling, that has stayed steady state.

Now I've done that with other stocks of major industrials and
technology also with one notable exception - Yahoo. I dumped Yahoo
two days before Cuban dumped his stake and the stock started tanking.
It worked out very well.

Here is the real secret to actually making money in the stock market -
or any financial venture - you need to do your homework, you need to
purchase stocks that you have some familiarity with (look around your
house and see what you use the most, then look up the parent company
for instance), don't listen to the folks who tell you about their
latest killing in the stock market because it's probably bull****, you
need to design a strategy that works for you over the long term - what
works for Wayne, Eisboch or me may not necessarily work for you -
we're all different people. There are certain principles in common,
but overall, utilizing the stock market as a short term play is for
traders who are plugged into a whole different data set than long term
equity holders - you need to create a strategy that makes the most
sense to you and in concert with a financial advisor (not a broker - a
broker is not a financial advisor - broker's are salesmen) excute the
plan and stick to it.

Lastly, get to the library and read Jim Cramer's three most excellant
books, read them twice, then ignore the advice and do what works for
you. :)

~~ That's just a way of saying get a clue before you do anything ~~

Financial question...
 

Eisboch wrote:
"John H." salmonremovebait@gmaildotcom wrote in message
...
On Thu, 21 Aug 2008 06:56:30 -0400, "Eisboch" wrote:

"John H." salmonremovebait@gmaildotcom wrote in message
...

So what are the companies which have done well? I'm assuming you
continue
to hold them because you believe they'll continue to do well.
Our largest holdings are in Corning (GLW). We bought at a serious dip,
shortly after telecom blew up at under 3 bucks.
It recovered to the high 20's, now has pulled back a bit to the low 20's.

The others are in related technology areas. I pick and choose myself,
based on my knowledge of the technology and what I believe it has as a
future. Optical stuff, mostly.

And yes, we will hold them. I really don't fret or worry about them.

Eisboch

It seems that you, like most people, are hesitant about giving out the
names of companies that are doing well. I've wondered about that. If you
told folks the names, and the folks went out and bought the stock, then
the
demand for the stock, and therefore the price, would go up. No? So it
would
seem to be in a holder's best interests to always divulge the name of a
stock that's doing well for them.

True, but the opposite can happen as well and then you risk ****ing people
off.
I don't listen to "tips" nor do I give them. I do my own homework.

I mentioned one that we hold because I think it's a fairly safe bet, long
term.
The others are a bit more risky, but potentially have big returns.

Eisboch




I cannot believe the naiveté of the questions you're being asked, and
what they say about the "asker." If you don't want to spend the time it
takes to learn about various stocks and you still want to invest in the
market, then you ought to be studying up on funds, not begging tips on
individual stocks from investors whose portfolios and objectives are
entirely different than yours.

There are thousands of legitimate texts and primers on how to invest in
stocks safely, and I don't know if they still have them, but when I
first started messing a bit with the market, I joined an investment club
in Detroit and learned some of the ropes.

Apparently Herring wants instant gratification, and even that isn't fast
enough for him.

Financial question...
 

On Thu, 21 Aug 2008 12:09:02 GMT, Short Wave Sportfishing
wrote:

On Thu, 21 Aug 2008 07:32:30 -0400, John H.
salmonremovebait@gmaildotcom wrote:

On Thu, 21 Aug 2008 06:56:30 -0400, "Eisboch" wrote:


"John H." salmonremovebait@gmaildotcom wrote in message
...


So what are the companies which have done well? I'm assuming you continue
to hold them because you believe they'll continue to do well.

Our largest holdings are in Corning (GLW). We bought at a serious dip,
shortly after telecom blew up at under 3 bucks.
It recovered to the high 20's, now has pulled back a bit to the low 20's.

The others are in related technology areas. I pick and choose myself,
based on my knowledge of the technology and what I believe it has as a
future. Optical stuff, mostly.

And yes, we will hold them. I really don't fret or worry about them.

It seems that you, like most people, are hesitant about giving out the
names of companies that are doing well. I've wondered about that. If you
told folks the names, and the folks went out and bought the stock, then the
demand for the stock, and therefore the price, would go up. No? So it would
seem to be in a holder's best interests to always divulge the name of a
stock that's doing well for them.

It's personal - Eisboch could give you the list and it wouldn't work
for you - different circumstances, different people.

For me, over the years, I've made a ton bying, holding and taking
profits from IBM. My strategy has been to keep my base number of
shares and buy and sell above and beyond that. I take ten percent of
any profit and reinvest it at the dips into IBM keeping that stake
seperate from the original holdings. I've never touched the original
holdings - ever. I've borrowed against them to start the process, but
once the ball got rolling, that has stayed steady state.

Now I've done that with other stocks of major industrials and
technology also with one notable exception - Yahoo. I dumped Yahoo
two days before Cuban dumped his stake and the stock started tanking.
It worked out very well.

Here is the real secret to actually making money in the stock market -
or any financial venture - you need to do your homework, you need to
purchase stocks that you have some familiarity with (look around your
house and see what you use the most, then look up the parent company
for instance), don't listen to the folks who tell you about their
latest killing in the stock market because it's probably bull****, you
need to design a strategy that works for you over the long term - what
works for Wayne, Eisboch or me may not necessarily work for you -
we're all different people. There are certain principles in common,
but overall, utilizing the stock market as a short term play is for
traders who are plugged into a whole different data set than long term
equity holders - you need to create a strategy that makes the most
sense to you and in concert with a financial advisor (not a broker - a
broker is not a financial advisor - broker's are salesmen) excute the
plan and stick to it.

Lastly, get to the library and read Jim Cramer's three most excellant
books, read them twice, then ignore the advice and do what works for
you. :)

~~ That's just a way of saying get a clue before you do anything ~~

We're getting off track, although there's nothing wrong with that. I'm not
looking for suggestions on ways to buy stock. Asking Eisboch for the names
of his companies was not because I wanted to go buy them. I've noticed,
over the years, that people tend not to want to share the names of
companies doing well for them. If it's because they're afraid of ****ing
people off, that's fine. If I have a company that has and seems to be doing
well, I'll share the name with anyone who's interested. They know that the
stock may go up or down. Hell, I hope it goes up and they share the name
with a few thousand other folks!

My question had to do solely with the decision to sell enough stock to pay
off my mortgage. Nothing more.

But thanks for the info you're sharing. It is not what I need right now,
but hopefully someone here will get some good out of it. I think it is
*great* advice.

I wouldn't put any money in annuities, however!

Financial question...
 

BAR wrote:
John H. wrote:
On Wed, 20 Aug 2008 17:30:52 -0400, "D.Duck" wrote:

"John H." salmonremovebait@gmaildotcom wrote in message
...
On Wed, 20 Aug 2008 17:11:53 -0400, "Eisboch"
wrote:

"Vic Smith" wrote in message
...
On Wed, 20 Aug 2008 16:33:11 -0400, John H.
salmonremovebait@gmaildotcom wrote:

On Wed, 20 Aug 2008 15:28:48 -0500, Vic Smith
wrote:

On Wed, 20 Aug 2008 16:16:32 -0400, John H.
salmonremovebait@gmaildotcom wrote:

Would it be a wise move to take out a loan on your home to buy
stocks?

Would it be a wise move to sell stocks to pay off a loan on
your home?
A lot has to do with your personal view on risk and holding debt.
Personally I hate any debt.
Since *nobody* can accurately predict what the stocks will do, it
comes down to that.
Well, I guess that was no help at all.

--Vic
When I bought the house, I was holding a lot of debt. I'm still
holding
some debt on the house.
Taxes are tricky. I'd love to knock off the rest of my house debt,
but the tax hit in cashing in a CD doesn't give advantage.
If it was less than a grand costs I'd do it anyway, just to clear the
debt. Like I said, personal view.

--Vic

Having spent most of my life in debt, I don't understand why
anyone wants
or needs it (except banks) once they are in a position of paying it
off.

We own three houses and hold a mortgage for a forth (sold it and
are acting
as the "bank").

We don't have any mortgage payments or debt. We pay credit card
balances
off every month.

I've been advised that's bad because we don't get any tax advantages.

But, to me, it isn't worth it. Why pay somebody interest, just to
get a
write off on income taxes that does not equal the interest paid?

Eisboch


I've never understood the advice to pay interest for the tax break.
Where
is the break in giving away $1 to get 30 cents back? Seems like 70
cents
got lost there somewhere.

I can understand holding debt while building a savings account, but
once
the cushion exists, I can't see the reason for it.
--
** Good Day! **

John H
You're on the right track. When your nest egg is secured payoff all
debt as soon as possible.

The only debt I have now is to Circuit City for the HDTV we recently
purchased. Reason, interest free for two years. The money stays in
the money market account (earning interest) and is extracted 100 bux
at a time each month.

That's the way to do it. Hell, I put our travel trailer on VISA because I
get a 1.25% rebate on the purchases. The dealer didn't like it a bit,
'cause I didn't tell him until after we'd negotiated a price, signed the
papers, and he said, "How would you like to finance this?"

I have a credit card that has a 5.5% interest rate. Same rate as my home
equity line of credit.

The CC interest isn't tax deductible.