It Is Not About the Money, Silly, It Is All About the Time
jacquesmattheij.com
It Is Not About the Money, Silly, It Is All About the Time
1–10 of 123 posts
Re: It Is Not About the Money, Silly, It Is All About the Time
#2> someone explained to me in a very serious tone of voice that getting rid of your mortgage is stupid because it is a deductible, better to wait with paying it off when you sell the house in 25 years
All else being equal, if you can deduct that from your taxes and spend the money on something else - like, say, index funds - you're going to be better off financially, no?
Re: It Is Not About the Money, Silly, It Is All About the Time
#3There can be totally valid reasons for not getting rid of your mortgage even if you have the opportunity - if you have something better to do with the money. If you are paying 3.5% on your mortgage but you can invest somewhere with a return greater than 3.5% after tax, why would you pay down your mortgage?
Re: It Is Not About the Money, Silly, It Is All About the Time
#4> someone explained to me in a very serious tone of voice that getting rid of your mortgage is stupid because it is a deductible, better to wait with paying it off when you sell the house in 25 years All else being equal, if you can deduct that from your taxes and spend the money on something else - like, say, index funds - you're going to be better off financially, no?
Index funds do not have a guaranteed rate of return but mortgages do have a guaranteed rate of expense.
Re: It Is Not About the Money, Silly, It Is All About the Time
#5If you pay off mortgage you need some plan for the extra money every month. If you save and invest it that is one thing, but if you just spend more freely (waste it), you are not better off. Economically, the best way is to not buy too much house, and invest all extra money into equities (index funds) over 20-30 years. If there is no extra money to invest, then you have bought too much house.
Re: It Is Not About the Money, Silly, It Is All About the Time
#6A guy was blogging about it a while back :)
http://www.forumromanum.org/literature/seneca_younger/brev_e...
Re: It Is Not About the Money, Silly, It Is All About the Time
#7There can be totally valid reasons for not getting rid of your mortgage even if you have the opportunity - if you have something better to do with the money. If you are paying 3.5% on your mortgage but you can invest somewhere with a return greater than 3.5% after tax, why would you pay down your mortgage?
Freedom is priceless.
Re: It Is Not About the Money, Silly, It Is All About the Time
#8There can be totally valid reasons for not getting rid of your mortgage even if you have the opportunity - if you have something better to do with the money. If you are paying 3.5% on your mortgage but you can invest somewhere with a return greater than 3.5% after tax, why would you pay down your mortgage?
Freedom is priceless.
And guaranteed returns aren't.
Re: It Is Not About the Money, Silly, It Is All About the Time
#9Have you read Early Retirement Extreme?
http://earlyretirementextreme.com/
Very similar philosophy.
Re: It Is Not About the Money, Silly, It Is All About the Time
#10I've noticed that people on the poorer side of the spectrum have made peace with the fact that there are (many) circumstances outside of their control that they are simply unable to address. They don't try by buying the rafts of expensive insurances that middle class people often insist on mostly because they simply can't. Its almost a zen thing.
It costs time and money not just to acquire things, but to hold onto them once you have them as well.