MassWineGuy
Well-Known Member
May well be. I’m never going to have a better rate.
Pay Off Mortgage?
- Thread starter MassWineGuy
- Start date
Jkloc420
Do you need an air compressor or tire gauge
Not with rates going up, but here is the thing, if you are going to have the money on the side to pay it off at any time then you don't need to pay it off
Up In Smoke
Well-Known Member
Have your wife start a side hustle and use the house as a home office or 280A tax deduction. Pay your mortgage as a business expense against it.
Cheesypurpletees
Well-Known Member
Pay it off. Equities have had a nice run up this year. A little hedge against this possible “recession” over the next 12 months having the $116k invested in your home
Commercial Inside Release
Well-Known Member
As I suspected. We know where to look, if you go missing.
Back in the late 80s, stuff like this was twisted into a big deal by glossy entrepreneurial magazines... Until the crackdown came. There is always a crackdown, eventually. Local governments are already squeezing their citizens... The Feds will, too. Soon.
He can make 5% on a CD or a treasury bond right now
It will be fine
Well-Known Member
You can get 4% with just a savings account at some banks. No reason to pay off a 3% loan.
I'm not saying that's the correct thing for him to do but he wants peace of mind.
MassWineGuy
Well-Known Member
If I wanted peace of mind I wouldn’t be at FedEx.
Jkloc420
Do you need an air compressor or tire gauge
Stop with the
ing treasury bonds fruitcakeIt's a good deal plus it saves you on state taxesStop with the
Up In Smoke
Well-Known Member
I believe 280A was signed into law in the 80's. My wife and I utilize it and the home office whenever the accountant says it's proper.
MassWineGuy
Well-Known Member
I could go back to having my own freelance writing business. I believe you can claim five years of losses until you have to stop.
DriveInDriveOut
Inordinately Right
Hookers and blow?
Up In Smoke
Well-Known Member
Best side hustle that I have witnessed is a retired driver sets "For Sale" yard signs for a real estate company in our area. The company has 50+ agents and he gets $50 for each job. The best part is he deducts his truck, trailer, home (garage) and storage units.
DriveInDriveOut
Inordinately Right
Average inflation rate over the past 30 years is higher than his interest rate. Realistically, the real inflation rate is much higher. Most predictions I'm hearing is higher for longer.
The peace of mind from not having a mortgage payment comes at a high opportunity cost.
Straight math, it's an easy decision, keep the mortgage. Measuring the value of that peace of mind is going to be different for everyone.
What happens if he's all invested in stocks in the market goes down 35%?
If he has a million dollars in his 401k he could take a 3% withdrawal right now, one in January 2024 and one in January of 2025 and probably have his house paid off and his funds would still have the opportunity to grow
But I do agree with you at 2.99%. there's no hurry to pay off the debt
MassWineGuy
Well-Known Member
I’ve got to look into that.
DriveInDriveOut
Inordinately Right
Nothing if he doesn't need to take it out.
There's really no reason to pay it off now or in 3 years. The market typically recovers from a recession within a year.
He can mitigate sequence of withdrawal risk with something as simple as a CD ladder while he keeps the vast majority of his retirement money in higher return investments.
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