Personal Finance and Investing

lastlib

(24,994 posts)

37. How do you feel about buying dead horses?

Mon Dec 30, 2024, 05:36 PM

Monday

If you're for it, if you like to buy dead horses, then by all means, sock the money away in the money market account, and keep buying dead horses (i.e., paying mortgage interest.) OTOH, if you don't like to buy dead horses, pay down the mortgage. It has never made sense to me why anybody would NOT pay down a debt, for which they are paying interest for which they have nothing to show (there's them dead horses again!), when they have the money to do it.

Last year, I bought a new car, and got a six-year loan at 8.6% interest. If I had paid it on the schedule, it would cost me $12,000 in interest/dead horses. I paid it off in 9 months, and SAVED $10,000, which stayed in MY pocket, as opposed to being a blip in the bank's earnings. It looks a heckuva lot better in MY pocket. I think you'll reach the same conclusion if you take the "live-horse" approach, and pay it off.

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I'm wondering...would it be better paying off my mortgage (80K) or keep the money in market investments? [View all] OAITW r.2.0 Dec 27 OP

I'd pay off the mortgage. If the economy goes to shit at least you'll own your house Ocelot II Dec 27 #1

That's what I am thinking too. And who knows how they will screw with SS. OAITW r.2.0 Dec 27 #2

There might be snowybirdie Wednesday #51

I paid mine off, it was a better move for me regardless of the tax situation. Ocelot II Wednesday #54

Are you familiar with the Turbineguy Dec 27 #3

I did, once, about 30 years ago. OAITW r.2.0 Saturday #6

If you've got it... 2naSalit Dec 27 #4

I have 2 CD's that would about cover it. About 6 months from maturity. OAITW r.2.0 Saturday #9

Hmm... 2naSalit Saturday #10

Only if you itemize your deductions. Many do not since they changed the law question everything Saturday #14

I thought that didn't matter now with the higher personal deduction, especially on 80k Shellback Squid Saturday #16

It comes down to the total annual interest cost plus annual property taxes IbogaProject Saturday #17

You get a tax deduction on the mortgage interest Felicita Saturday #21

Good advice, thanks. Maybe paying down chunks. over time, is the better way to go. OAITW r.2.0 Saturday #23

Prepaying some of the principal each month is a good option. TheRickles Wednesday #52

The fed has signaled that inflation and interest rates are going up, IIRC. usonian Saturday #5

you'll give up $80K and lose a tax deduction. whats the interest rates for mortgage vs possible msongs Saturday #7

How much interest is in your payments? Renew Deal Saturday #8

Pay off the mortgage. greatauntoftriplets Saturday #11

What's the interest rate on the mortgage and how old is it? PSPS Saturday #12

I paid mine off, with $500 to spare in my account. alfredo Saturday #13

Well, I can tell you, 1st hand, LL Bean's sells quality product. OAITW r.2.0 Saturday #24

your current interest rate on the mortgage? Shellback Squid Saturday #15

I think it's 3.5% OAITW r.2.0 Saturday #18

CDs and short-term treasury bills/other bonds are currently over 4 percent carpetbagger Saturday #20

Debt free is great state of mind. rubbersole Saturday #19

I'm leaning that way, too. OAITW r.2.0 Saturday #25

I paid mine off earlier this year. woven Saturday #22

Welcome aboard! OAITW r.2.0 Saturday #27

No advice, just analysis here HariSeldon Saturday #26

Something to consider. Thanks for posting. OAITW r.2.0 Saturday #28

We were in the same situation 25 years ago - Paid off the mortgage GoneOffShore Saturday #29

Pay off the mortgage FirefighterJo Saturday #30

This is good advice Renew Deal Saturday #32

I have an Acorns account. Something I am trying to get my kids and neices and nephews to use, OAITW r.2.0 Tuesday #38

I never regretted paying off my mortgage early. viva la Saturday #31

2008 - and the Maidoff led market collapse. I sat down with my wife. "Lets pay it off now because we don't know 3Hotdogs Saturday #33

I'm kinda where you are, but without the wife. OAITW r.2.0 Tuesday #39

50 acres. Where is that? The only acre I got is from a bad tooth. 3Hotdogs Tuesday #40

Central Maine. Right smack in the middle of nowhere. OAITW r.2.0 Tuesday #41

NIce. I had friends who had several acres in Stetson, Me., outside of Bangor. They bought a couple of acres, around '72, 3Hotdogs Tuesday #45

Never had an experience like that. I was on the Planning Board in my town in the 90;s. OAITW r.2.0 Tuesday #46

Different times ----- different neighbors. 3Hotdogs Tuesday #47

Continuing. 3Hotdogs Tuesday #48

Had a very deep temperature drop 2 years ago. Really cold, then -50F below overnigjt, then really cold again. OAITW r.2.0 Tuesday #49

How old are you? And are the investments mostly MontanaFarmer Saturday #34

I'm encroaching on 72. OAITW r.2.0 Tuesday #42

That's tempting to get out of the MontanaFarmer Wednesday #50

Invest a small portion into Quantam computing and Beachnutt Saturday #35

I did it shortly before retiring - smartest thing I could have done under the circumstances. Ocelot II Saturday #36

I am 72. Thinking about a living trust to put the house into and making my kids the beneficiaries. OAITW r.2.0 Tuesday #43

How do you feel about buying dead horses? lastlib Monday #37

To simplify. I have an $80K mortgage at 3.5% (20 years/ 5 years in). I have CD investment equivalents making 5% OAITW r.2.0 Tuesday #44

I've been interested in this thread wryter2000 Wednesday #53

If you have 15 year CDs earning 5%, you would be better off financially to not pay off your mortgage; however, surfered Wednesday #56

Sounds like a good plan. multigraincracker Wednesday #58

Consider what they economic opportunity cost is LogDog75 Wednesday #61

We didn't have a very good loan so it made sense for us to pay off our mortgage many years ago. CrispyQ Wednesday #55

Pay off the mortgage. ificandream Wednesday #57

I had planned on paying my house off when I retired Americanme Wednesday #59

If you have enough, put that into a Money Market account as long as it is paying more than Wonder Why Wednesday #60

money market dividends are not qualified dividends, and so are not eligible for the capital gains rate nmmi Wednesday #62

I stand corrected on that point. They are not eligible for capital gains rate. Wonder Why Wednesday #63