Once Again Gainfully Employed

[onewhippedpuppy]

George, in hindsight I wish I had been more aggressive on attacking the mortgage. Had I funneled money that I invested into 401k, IRA, and mutual funds, it would have been paid off. Retirement savings is great, but in reality I was borrowing (mortgage) to invest. Not the best strategy.

[wportervt]

Congratulations Matt! Glad to hear everything is working out well for you and especially happy to hear you'll be keeping the car business going! Happy New Year!

[aigel]

Originally Posted by onewhippedpuppy

George, in hindsight I wish I had been more aggressive on attacking the mortgage. Had I funneled money that I invested into 401k, IRA, and mutual funds, it would have been paid off. Retirement savings is great, but in reality I was borrowing (mortgage) to invest. Not the best strategy.

You have to balance things. I.e. you definitely want to take in the maximum employer 401k match if available. You also will want to work towards maxing out the contribution to the yearly limit, if you can swing it. Beyond that, IMHO, and this may not work for everyone else, getting the house paid off is next.

G

[VincentVega]

George, in hindsight I wish I had been more aggressive on attacking the mortgage. Had I funneled money that I invested into 401k, IRA, and mutual funds, it would have been paid off. Retirement savings is great, but in reality I was borrowing (mortgage) to invest. Not the best strategy.

What is your rate of return on your investments vs the real interest paid (including tax deduction)?

You usually make out in the end by investing instead of wrapping your $$ up in a place to live. Sure I could have paid down my mortgage more this year but I had a ~15% return in very basic investments. It's your $$ of course, do what works for you.

Great news on the job, hope it works out. I'm impressed with you car business, it's something I've been interested in but am more cautious. Well done.

[jyl]

Congratulations! You made your own luck.

[onewhippedpuppy]

Originally Posted by VincentVega

What is your rate of return on your investments vs the real interest paid (including tax deduction)?

You usually make out in the end by investing instead of wrapping your $$ up in a place to live. Sure I could have paid down my mortgage more this year but I had a ~15% return in very basic investments. It's your $$ of course, do what works for you.

Great news on the job, hope it works out. I'm impressed with you car business, it's something I've been interested in but am more cautious. Well done.

I understand the math, and agree with George about maxing out your 401k match. But when the proverbial crap hits the fan, you can't live in a 401k. And if you suspend your 401k contributions, the bank won't come take your fund from you. It's all about your tolerance for risk, this little adventure has taught me a lesson about mine.

[VincentVega]

this little adventure has taught me a lesson about mine.

Isnt that what's it's all about? Great work turning chicken $#$% into chicken salad.

But when the proverbial crap hits the fan, you can't live in a 401k.

No, but you can sell your assets and still have your house. No reason to be cash poor but have no/little mortgage with all your shekels tired up in your residence. Many ways to skin a cat.

[livi]

Congratulations!

[KFC911]

Originally Posted by VincentVega

....Many ways to skin a cat.

Lots of ways to skin a dawg is my version Sound advice throughout this thread with everyone's personal twist on how to achieve it imo...we'd make a great choir! Congrats Matt! You sure are "lucky" that things seem to work out for ya this way