Free at Last - Page 3

Jim Richards · 02-12-2009, 05:04 PM

Quote:

Originally Posted by Walter_Middie

So your 401K is shot, and now you are counting on your home value for retirement? Aren't realestate values still either going down, or expecting to go up really slowly for many many years? I am about to sell a house that I almost have paid off, and sink myself deep into a really nice house, in a nice neighborhood, in hopes that it will increase in value faster than the house I'm in now - once the economy improves. I'm 50, and don't plan on retiring for several years. I too look forward to paying the thing off, but where else can I put my investment money? I have people telling me that paying off the house is not the way to increase my net worth.

Not sure I follow you, Rex. We're only counting on our home to be our home, not an investment. We have been and will continue to save/invest for our retirement. Perfect time for dollar cost averaging.

Jim Richards · 02-12-2009, 05:05 PM

Quote:

Originally Posted by bell

michelle smacked me on the forehead and said i told her that a while back, guess it slipped my mind

Gettin' old and senile, Bell! BTW, say hi to Michelle from me & Lu.

bell · bell's Garage

you know it LOL

if you ever make it to florida you and lu have a place to stay

ruf-porsche · ruf-porsche's Garage

I'm starting over. Just lock in at 4.75 for the next thirty years.

TheMentat · TheMentat's Garage

Quote:

Originally Posted by sammyg2

LOL we're signing the papers tonight to complete the refi on our house, 15 year loan at 4.5%.

Paying it all the way off is not a priority for me, with payments as low as a car payment I don't sweat it. We pay more for gas and insurance than we do the house.

My thoughts exactly...

I can understand the benefit of being entirely debt free if you want to just "coast", but I'd be surprised if you couldn't think of an investment that yields more than 4.5% with moderate risk... that is an easy spread to pick up with any funds from a refi...

Walter_Middie · Walter_Middie's Garage

Quote:

Not sure I follow you, Rex.

My wife and I have been struggling with this question for a few years now - Do we pay off the house, live comfortably and travel? Or do we buy one more house, and have it paid off by the time we retire? We have just decided to buy another house - so I had to comment on your thread when I saw it. Our house that is almost paid off went on the market a couple of days ago. Our first open house is this Sunday. I guess I want to know that we are making the right move.

daepp · 02-12-2009, 06:34 PM

No coasting here. No debt, but I'm staring down the barrel of three college educations over the next 10 years.

livi · 02-12-2009, 06:56 PM

Congrats!

I will die in stile, debts up to my neck.

campbellcj · 02-12-2009, 08:34 PM

Congrats! I'm hoping to be completely debt-free by 50. That will take some consistent high income and discipline, plus will be even harder if we move up in house before then. Cali is so effin expensive...we still have one giant MD loan to deal with first but everything else is clear.

Jim Richards · 02-13-2009, 02:54 AM

The argument about leverage vs being debt free is always an interesting one. For us, the tipping point was hit about 6 years ago, when I was laid off for the first time (and hopefully last time) in my career. Being in the technology field, my employers typically went through rounds of layoffs every two years or so. It never hurt me, but it did leave me and my wife stressed out. A while after the tech bubble burst, my then employer went through quarterly layoffs for a year and a half. I was whacked in the 5th of 6 layoffs as the company shrunk its headcount by 85%. After a nice "summer vacation," I was back to work at my present outfit at 2/3 my former pay. Nowadays, I'm pretty much back on my career track. Touch wood.

My wife and I made the decision then that we must be able to live comfortably on one income. The best way for us to do that was to eliminate payments for where we live. We're finally at that point, and it feels good. YMMV

Tim Walsh · Tim Walsh's Garage

Congratulations! Steff and I have another 21 years on the current track.

Hendog · Hendog's Garage

Congratulations!! 11 years to go (20 contractually).

rattlsnak · rattlsnak's Garage

people who have no bills = zombies in my book.....

congrats, even though you suk.

cgarr · cgarr's Garage

What a great and refreshing bunch of people here! Most are looking to pay off and get out of debt ahead of time, Times get tough and its all about eliminating debt, not going further into:

HOW REFRESHING

KFC911 · 02-13-2009, 08:21 AM

Quote:

Originally Posted by TheMentat

My thoughts exactly...

I can understand the benefit of being entirely debt free if you want to just "coast", but I'd be surprised if you couldn't think of an investment that yields more than 4.5% with moderate risk... that is an easy spread to pick up with any funds from a refi...

I would dare say that "most" who have the financial discipline to pay off their primary mortgages are not the type to simply "coast", but continue to invest wisely, buy investment properties, etc. without having their home "in play" if their merry-go-round suddenly stops. Having spent much of my IT career in banking (during the heyday of acquisitions, mergers, head count reductions, etc.), I observed MANY successful, highly paid (typically management is the first to get the axe) types suddenly stressed out to the max, and learned my lesson early on. Of course, one isn't "maximizing leveraging" by keeping their home out of the equation, but I prefer to have slightly less leverage with KMA investments (Dueller's term) instead

. Different strokes...congratulations Jim!!!

Seahawk · 02-13-2009, 08:35 AM

Quote:

Originally Posted by Jim Richards

The argument about leverage vs being debt free is always an interesting one. For us, the tipping point was hit about 6 years ago, when I was laid off for the first time (and hopefully last time) in my career. Being in the technology field, my employers typically went through rounds of layoffs every two years or so. It never hurt me, but it did leave me and my wife stressed out. A while after the tech bubble burst, my then employer went through quarterly layoffs for a year and a half. I was whacked in the 5th of 6 layoffs as the company shrunk its headcount by 85%. After a nice "summer vacation," I was back to work at my present outfit at 2/3 my former pay. Nowadays, I'm pretty much back on my career track. Touch wood.

My wife and I made the decision then that we must be able to live comfortably on one income. The best way for us to do that was to eliminate payments for where we live. We're finally at that point, and it feels good. YMMV

You just hit on the most important part of any investment strategy: personal comfort.

I have been very risk happy with my life in terms of putting myself in risk-rich environments physically.

But, investment-wise, I started following the advice of Andrew Tobias early and often. His strategy still resonates with me today: slow and steady, be aware and be comfortable with financial decisions, know the risks in advance. I still have a copy of his software, Managing Your Money in DOS

The point is, we all have our own risk tolerances in life and in investing. I have tried not to exceed either.

Jim Bremner · 02-13-2009, 09:00 AM

11 to go

the paid off note on the house is the new status symbol.

cgarr · cgarr's Garage

Quote:

Originally Posted by Jim Bremner

11 to go

the paid off note on the house is the new status symbol.

That and a stay home Wife

Jim Richards · 02-13-2009, 09:22 AM

Quote:

Originally Posted by cgarr

That and a stay home Wife

How 'bout a stay home husband?

JMPRO · JMPRO's Garage

Both of my homes have been paid for years ago and I bought a new Mercedes and paid cash for it last year. It is very nice to be debt free. Many people tell me I should leverage my holdings but I like being a master of my own fate.
JMPRO