$24,000 for each man woman and child.... So far.

Re: $24,000 for each man woman and child.... So far.

PostBy: SAU On: Fri Nov 28, 2008 2:22 am


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Re: $24,000 for each man woman and child.... So far.

PostBy: e.alleg On: Sat Nov 29, 2008 2:36 am

billw wrote:Can you imagine if social security was invested in the stock market like the thieves (politicians) proposed a couple of years ago? This makes the social security shortfall of a couple hundred billion in 20 years look like chump change.

The advice I've given my three kids is to buy a home and get it paid for as fast as you can. Your home isn't an investment as the popular investment strategies go, it's where you live. If you own your house free and clear you can weather a job loss or disability and still have a place to sleep at night. As people are learning retirement savings can vanish in the blink of an eye.

I had a discussion about this with a loan officer years ago. He kept telling me I'm missing out on tax deductions by paying off my house early. I told him the choice is give the bank 10,000 in interest or give the government an additional 1,000 in taxes. I'll pay the government and keep my 9,000 in my pocket. He just smiled at me and didn't argue.

I think it's better to have a 30 year mortgage and pay it over 30 years. Save the payment money under your mattress or wherever for security but don't pay the loan off early and never and I mean never refinance or take out a home equity loan. Inflation works to your advantage on a 30 year mortgage unless you refinance. Say you have a 8% fixed interest rate (for sake of simplicity), after about 5-7 years the interest you pay is completely offset by inflation and tax savings. I am not an accountant but I understand there is a limit to how this works, my house was relatively cheap (about the same price as a new fully loaded diesel pickup truck ) so interest isn't that much.
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