UPS Stock almost to $120 this week...

[LeddySS98]

My interest rate it 4.35%... I borrowed $180k in 2011... I thought 4% I cant go wrong... untill i made my first payment and 650 bucks went straight to interest... So I ramped up my additional principal payment and have the mortgage down to 70k now with $260 going to interest right now...

I've read all kinds of financial advice saying how paying off the mortgage is the last thing you should do and gives the example of paying $16,000 in interest and getting to write it off on your taxes and getting a $4,000 refund and how great that is... yeah, it seems like a nice idea to get a refund of 4,000 but its your own money your getting back.. and you pay 16,000... get 4,000 back... but what about the 12,000 you lost to interest... how can it be better to keep the mortgage going the full 30 years.

 

[UpstateNYUPSer(Ret)]

OPL was such a great investment.

I missed the OPL bandwagon.

 

[UpstateNYUPSer(Ret)]

Thanks for all the info and opinions so far... As for my plans if I do end up selling it, I was planning on using it to pay down my the principal on my mortgage... I know I'll get a lot of mixed reactions to that, but it just seems silly to me to pay any more interest than I have to while making mortgage payments still.

That's a decent idea ... conservative but safe.

Would the principal pay down be offset by the capital gain that he may have to pay?

 

[UpstateNYUPSer(Ret)]

My interest rate it 4.35%... I borrowed $180k in 2011... I thought 4% I cant go wrong... untill i made my first payment and 650 bucks went straight to interest... So I ramped up my additional principal payment and have the mortgage down to 70k now with $260 going to interest right now...

I've read all kinds of financial advice saying how paying off the mortgage is the last thing you should do and gives the example of paying $16,000 in interest and getting to write it off on your taxes and getting a $4,000 refund and how great that is... yeah, it seems like a nice idea to get a refund of 4,000 but its your own money your getting back.. and you pay 16,000... get 4,000 back... but what about the 12,000 you lost to interest... how can it be better to keep the mortgage going the full 30 years.

I refinanced in 2010 ($85K @ 4.5% fixed VA loan) and am at $21K today. I had a realtor (my former bosses' wife) come over while I was on vacation and she was amazed that I had paid it down so quickly. I project that my balance will be right around $10K when I sell. My interest last month was $78.

 

[Re-Raise]

OPL was such a great investment.

OPL was also an eye opener for me about insurance companies.

I always wondered why there wasn't more focus at UPS on reducing damages. That little sham company was making money hand over fist precisely because we WERE damaging packages.

Kind of like the recent flooding losses. The insurance companies will take an initial hit. But because everyone now fears flooding, they will probably sell a lot more flood insurance!

 

[UpstateNYUPSer(Ret)]

OPL was also an eye opener for me about insurance companies.

I always wondered why there wasn't more focus at UPS on reducing damages. That little sham company was making money hand over fist precisely because we WERE damaging packages.

Kind of like the recent flooding losses. The insurance companies will take an initial hit. But because everyone now fears flooding, they will probably sell a lot more flood insurance now!

I thought we made money on OPL because we weren't damaging packages that shippers paid extra to insure.

Didn't the IRS end up shutting it down?

 

[Re-Raise]

I thought we made money on OPL because we weren't damaging packages that shippers paid extra to insure.

Didn't the IRS end up shutting it down?

We made money on OPL because people were willing to pay a lot for insurance because they felt there was a good chance that we COULD damage it.

If we didn't ever break anything people would decline the extra cost.

Crushed packages were great advertising for OPL

And yeah, they had to shut it down and pay a large tax fine

 

[Catatonic]

Would the principal pay down be offset by the capital gain that he may have to pay?

Good point but one makes a decision at a point in time. You have to pay it at some point.
If the market goes flat or retracts - yes.
You didn't factor in 'piece of mind' - similar to leasing a car.

 

[Catatonic]

I thought we made money on OPL because we weren't damaging packages that shippers paid extra to insure.

Didn't the IRS end up shutting it down?

Off shore tax shelter.
IRS lost their case but UPS did shut it down.

 

[Catatonic]

I refinanced in 2010 ($85K @ 4.5% fixed VA loan) and am at $21K today. I had a realtor (my former bosses' wife) come over while I was on vacation and she was amazed that I had paid it down so quickly. I project that my balance will be right around $10K when I sell. My interest last month was $78.

I paid an extra monthly payment per year plus 1/4 of my MIP take home and my 30 yr was paid off in 14.
This helps too.

 

[Catatonic]

I missed the OPL bandwagon.

By the time it was offered to drivers, the big gains were gone.

 

[Brownslave688]

My interest rate it 4.35%... I borrowed $180k in 2011... I thought 4% I cant go wrong... untill i made my first payment and 650 bucks went straight to interest... So I ramped up my additional principal payment and have the mortgage down to 70k now with $260 going to interest right now...

I've read all kinds of financial advice saying how paying off the mortgage is the last thing you should do and gives the example of paying $16,000 in interest and getting to write it off on your taxes and getting a $4,000 refund and how great that is... yeah, it seems like a nice idea to get a refund of 4,000 but its your own money your getting back.. and you pay 16,000... get 4,000 back... but what about the 12,000 you lost to interest... how can it be better to keep the mortgage going the full 30 years.

Because you're making more money on the investment than your losing in intrest. So long run it's a net positive.

 

[hangin455]

I knew when I saw this thread title it was gonna put the jinx on it....

UPS 119.71
-1.08(-0.89%)
NYSE 10/03/2017-Closed

 

[Jkloc420]

My interest rate it 4.35%... I borrowed $180k in 2011... I thought 4% I cant go wrong... untill i made my first payment and 650 bucks went straight to interest... So I ramped up my additional principal payment and have the mortgage down to 70k now with $260 going to interest right now...

I've read all kinds of financial advice saying how paying off the mortgage is the last thing you should do and gives the example of paying $16,000 in interest and getting to write it off on your taxes and getting a $4,000 refund and how great that is... yeah, it seems like a nice idea to get a refund of 4,000 but its your own money your getting back.. and you pay 16,000... get 4,000 back... but what about the 12,000 you lost to interest... how can it be better to keep the mortgage going the full 30 years.

if you are young you stay in and keep buying. The market will have ups and downs, being young allows you to weather a downturn. You cant time the market like others have said. all those shares you got at 40-60 dollars are now worth 120 bucks, you doubled your money in 10 years from the crash of 2008. You should also reinvest your divs. Money on top of money

 

[LeddySS98]

As for being young, I'll turn 40 next year so that puts me right in the middle of young and old probably = ) I already do reinvest my dividends each quarter. I was planning on selling a 100 shares, but after reading responses on here and looking at stocks I could reinvest in now I'm thinking of buying into those, but I still want to put some toward the mortgage principal so to spread it all out and buy into 2 different stocks plus have some to put towards the house maybe I'd sell 150 shares... but then am I putting too much back into the stock market, or do I not put enough.... UGH... it's endless trying to figure out what to do ]= )

 

[Jkloc420]

As for being young, I'll turn 40 next year so that puts me right in the middle of young and old probably = ) I already do reinvest my dividends each quarter. I was planning on selling a 100 shares, but after reading responses on here and looking at stocks I could reinvest in now I'm thinking of buying into those, but I still want to put some toward the mortgage principal so to spread it all out and buy into 2 different stocks plus have some to put towards the house maybe I'd sell 150 shares... but then am I putting too much back into the stock market, or do I not put enough.... UGH... it's endless trying to figure out what to do ]= )

you can put extra towards the principle without selling, just send an extra 100 bucks in with it or whatever you want. Send in an extra 100 bucks a week if you want

 

[LeddySS98]

I pay an extra $1600 a month now... I'm wanting to crank it up to a extra 3,000 a month and have the house paid off in spring of 19 = ) but I cant make that big of payment without selling some stock

 

[zubenelgenubi]

I'm still in progression, but I'm at the point where I can put extra toward my student loans. Plan to have them paid off next year. Once I top out, the extra money I make from that, plus what I was putting towards the student loans, will all go towards the house. Should have it paid off in 3 years, then on to the next house

 

[Brownslave688]

I pay an extra $1600 a month now... I'm wanting to crank it up to a extra 3,000 a month and have the house paid off in spring of 19 = ) but I cant make that big of payment without selling some stock

What's an extra couple of years?. Where you are now your payments have to be mostly principal.

Kick it up to $2000 a month if you can and pay it off by what 45 or so?

 

[rod]

I just pay cash for everything. I find it easier that way