What affected your net career income most?
05-28-2020, 02:16 PM
#51
Line Holder
Joined APC: Mar 2015
Posts: 69
no debt except the house payment. It's just a rule my spouse and I have chosen to live by.
It's been hard to watch friends enjoying toys that they've financed to the hilt, but I sleep better at night without payments hanging over my head.
It's been hard to watch friends enjoying toys that they've financed to the hilt, but I sleep better at night without payments hanging over my head.
05-29-2020, 04:43 AM
#52
Gets Weekends Off
Joined APC: Dec 2008
Position: NYC ER
Posts: 472
Originally Posted by bentwookie
no debt except the house payment. It's just a rule my spouse and I have chosen to live by.
It's been hard to watch friends enjoying toys that they've financed to the hilt, but I sleep better at night without payments hanging over my head.
It's been hard to watch friends enjoying toys that they've financed to the hilt, but I sleep better at night without payments hanging over my head.
05-29-2020, 04:58 AM
#53
Gets Weekends Off
Joined APC: Sep 2008
Position: Kickin’ Back
Posts: 6,971
Originally Posted by dbrownie
Living debt free or almost debt free has been one of the biggest “ah ha” moments for me so far, it means not keeping up with the Jones’s but is a huge stress reducer.
I know there are two schools of thought about taking or not taking a mortgage into retirement. It might be smarter to have One for the tax break. But form, it’s the piece of mind and that’s worth a lot.
Denny
05-29-2020, 05:06 AM
#54
Roll’n Thunder
Joined APC: Oct 2009
Position: Pilot
Posts: 3,618
Originally Posted by Denny Crane
Yes it is. I’ve only got a small mortgage left on my house and it will be paid off in 3 years or less....
I know there are two schools of thought about taking or not taking a mortgage into retirement. It might be smarter to have One for the tax break. But form, it’s the piece of mind and that’s worth a lot.
Denny
I know there are two schools of thought about taking or not taking a mortgage into retirement. It might be smarter to have One for the tax break. But form, it’s the piece of mind and that’s worth a lot.
Denny
Plus you can only write off your home mortgage interest if you itemize, and given the new tax law the vast majority of people are now just using the larger standard deduction anyways.
05-29-2020, 05:57 AM
#55
Gets Weekends Off
Joined APC: Sep 2008
Position: Kickin’ Back
Posts: 6,971
Originally Posted by tennisguru
I don't understand why people would keep a mortgage just for the tax break. I get using the tax break if you have a mortgage, but keeping one doesn't make any sense. Mortgage interest is a tax deduction, which reduces your taxable income. So if you pay your bank 10k in interest, you don't pay taxes on that money, which for most of us would be about $3300. But your net loss is still $6700 out of your pocket. Or you keep your 10k by not having a mortgage, and yes you'll pay the gubmint $3300 more dollars, but you still get to keep more money in your pocket in the end.
Plus you can only write off your home mortgage interest if you itemize, and given the new tax law the vast majority of people are now just using the larger standard deduction anyways.
Plus you can only write off your home mortgage interest if you itemize, and given the new tax law the vast majority of people are now just using the larger standard deduction anyways.
Denny
05-29-2020, 06:19 AM
#56
Gets Weekends Off
Joined APC: Apr 2007
Posts: 4,516
Originally Posted by bentwookie
no debt except the house payment. It's just a rule my spouse and I have chosen to live by.
It's been hard to watch friends enjoying toys that they've financed to the hilt, but I sleep better at night without payments hanging over my head.
It's been hard to watch friends enjoying toys that they've financed to the hilt, but I sleep better at night without payments hanging over my head.
Originally Posted by dbrownie
Living debt free or almost debt free has been one of the biggest “ah ha” moments for me so far, it means not keeping up with the Jones’s but is a huge stress reducer.
05-29-2020, 07:27 AM
#57
Gets Weekends Off
Joined APC: Jun 2007
Position: 73N
Posts: 860
Originally Posted by DALMD88FO
What's funny is that I had a Capt give me the completely opposite advice when I was getting furloughed post 911. He said if you're thinking about it then do it while you are making money at a furlough job not C2K rates.
05-29-2020, 08:05 AM
#58
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Thread Starter
Joined APC: Dec 2019
Posts: 193
Carrying mortgage debt discussion has more to do with where your money is working then whether you are retired or not. If you are under 3% on your mortgage and can average 6% in the market you are better served investing it in the market then paying off your mortgage faster. If you feel the market will return significantly below its historical average then pay off your mortgage.
05-29-2020, 08:10 AM
#59
Roll’n Thunder
Joined APC: Oct 2009
Position: Pilot
Posts: 3,618
Originally Posted by Gen6
Carrying mortgage debt discussion has more to do with where your money is working then whether you are retired or not. If you are under 3% on your mortgage and can average 6% in the market you are better served investing it in the market then paying off your mortgage faster. If you feel the market will return significantly below its historical average then pay off your mortgage.
05-29-2020, 08:27 AM
#60
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Joined APC: Apr 2007
Posts: 4,516
Originally Posted by Gen6
Carrying mortgage debt discussion has more to do with where your money is working then whether you are retired or not. If you are under 3% on your mortgage and can average 6% in the market you are better served investing it in the market then paying off your mortgage faster. If you feel the market will return significantly below its historical average then pay off your mortgage.
There are plenty of safe investments with returns above 3%. Rather than pay off our mortgage, we're investing an equivalent amount in real estate with non recourse financing. The cash on cash returns more than cover the mortgage, plus we are building equity from principle reduction and possibly appreciation over the long term holding period. I'm a fan of Dave Ramsey right up through baby step 6, where he says to pay off the house.
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