Clear the debt, use your fromer house payments to rebuild your stocks.

"John H." wrote:

On Wed, 20 Aug 2008 15:45:17 -0500, Vic Smith
wrote:

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

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.
--
** Good Day! **

John H

Blood suckers all of them. If your are smart enough to earn or otherwise
accumulate the dollars, why would you let a commissioned self serving leech spend
your money.

"John H." wrote:

On Wed, 20 Aug 2008 17:02:22 -0400, "Eisboch" wrote:


"John H." salmonremovebait@gmaildotcom wrote in message
.. .
On Wed, 20 Aug 2008 16:34:07 -0400, "Eisboch" wrote:


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



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

Hell no!

Would it be a wise move to sell stocks to pay off a loan on your home?

Possibly. Depends on the details of your situation.

Eisboch


What details would be necessary? Perhaps a better idea of the details to
consider would be of big help.


Other than the cursory opinion I offered, I am in no position to advise
anybody on their personal finances.

If you are serious, you should talk to a certified financial planner.

Me? I avoid them at all "costs".

Eisboch

The trouble with the certified financial planners all have something they
want to sell.

What I'm looking for are the criteria by which such a decision should be
made, or even ideas.
--
** Good Day! **

John H

On Wed, 20 Aug 2008 17:18:07 -0400, "Eisboch" wrote:


"John H." salmonremovebait@gmaildotcom wrote in message
.. .
On Wed, 20 Aug 2008 17:02:22 -0400, "Eisboch" wrote:


"John H." salmonremovebait@gmaildotcom wrote in message
...
On Wed, 20 Aug 2008 16:34:07 -0400, "Eisboch"
wrote:


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



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

Hell no!

Would it be a wise move to sell stocks to pay off a loan on your home?

Possibly. Depends on the details of your situation.

Eisboch


What details would be necessary? Perhaps a better idea of the details to
consider would be of big help.


Other than the cursory opinion I offered, I am in no position to advise
anybody on their personal finances.

If you are serious, you should talk to a certified financial planner.

Me? I avoid them at all "costs".

Eisboch

The trouble with the certified financial planners all have something they
want to sell.

What I'm looking for are the criteria by which such a decision should be
made, or even ideas.
--
** Good Day! **

John H


Two words.

Debt Free


Eisboch


I like that!
--
** Good Day! **

John H

"Eisboch" wrote in message
...

"Vic Smith" wrote in message
news
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 made sure our house and vehicle were paid for before retiring.
The old van is gone now and I'll look carefully before buying new in March
when the Ranger pickup goes back off lease.
We don't get any type of tax shelter on our house mortgages, so it tends to
be a long tough slog.

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

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
news 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?"
--
** Good Day! **

John H

On Wed, 20 Aug 2008 17:31:58 -0400, "D.Duck" wrote:


"John H." salmonremovebait@gmaildotcom wrote in message
.. .
On Wed, 20 Aug 2008 17:17:06 -0400, BAR wrote:

John H. wrote:
Would it be a wise move to take out a loan on your home to buy stocks?

If you have a mortgage, no.

Wouldn't a home equity loan be the same as a mortgage? (In all but name.)

Would it be a wise move to sell stocks to pay off a loan on your home?

If you have income, no.

Why? Assume the individual does have income sufficient to pay the monthly
mortgage payments. Why should he do so?


--
** Good Day! **

John H

Because you giving the mortgage holder interest.

Exactly. And I'm only getting 30% of it back (on a good day).
--
** Good Day! **

John H

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
news 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.

"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)

On Aug 20, 6:39*pm, 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
news 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.

Get a card that provides cash back (BP gas in my case), charge most
everything you purchase on that credit card then pay it off in full
every month.

Free money for up to 60 days from the date of purchase plus cash back.