Interesting Statistic Heard Today

[Rustyt1953]

Our house has long been paid off. We are 6 months away from making our last car payment. JR has 2 Hot Wheels Bimmers. Does that check both boxes?

 

[pantannojack]

At 62, I paid off my first mort a decade ago. Ramsey is Right. It feels great. Remember: " Tastes great, Less Filling."?I don't owe a nickel to no'boddy. Except, maybe, my favorite local GS.

 

[GypsmJim]

I like the way you have taken the path that is right for you. My only thought is there seems to be a mis-conception that a financial planner will just push you into stocks and the market or high-risk investments.

Any financial advisor worth their salt will understand 2 key items;

#1 clients' goals,
#2 the clients' risk tolerance

Once they understand those 2 key items, they can build a plan.

If they aren't asking those questions you need to find another advisor.

I have 2 financial planners. Neither knows about the other. I have given both a full picture of my goals and tolerance. The only information lacking was my wealth. I gave a third of my investments to each.

The last third I managed myself.

Both of them get commissions. Both are fiduciaries, so they only make money when I make money.

My own ideas are way ahead of theirs.

PS - I'm an engineer, not an economist, and I don't make any commissions...

 

[GypsmJim]

Our house has long been paid off. We are 6 months away from making our last car payment. JR has 2 Hot Wheels Bimmers. Does that check both boxes?

I used to have a credit union at work. My monthly "payments" to that account were uses as a car fund. When there was enough money there for a new one, we bought it. Never made a car payment in my life.

Mortgages are most likely necessary because of the expense involved. Also, real estate appreciates, and the expenses are tax deductible. IMHO, borrowing money on a depreciating asset ain't a good financial move.

 

[Telecaster]

Tax deductible only if they exceed the standard deduction.

I think debt is a form of slavery. If you can use a loan to seed a business to turn a profit, you're only partially enslaved.

 

[Grayfox]

If I hadn't paid off my mortgage, I never would have been able to retire when I did. But because I did, I now live quite comfortably in retirement.
In fact, I have no loans out at all. My vehicles are also paid for. All I have are regular monthly expenses such as electricity, water, groceries, gas and such.
But there's a catch. The less money you owe, the lower your credit score is. Yeah, makes no sense to me either. Back when I was still working and had a mortgage, I had excellent credit. But now, being retired and completely out of debt, my credit score had dropped well over 100 points. WTH?

 

[Onomea]

... The less money you owe, the lower your credit score is. Yeah, makes no sense to me either. Back when I was still working and had a mortgage, I had excellent credit. But now, being retired and completely out of debt, my credit score had dropped well over 100 points. WTH?

Yeah, I hear ya, but, on the other hand, so what?

Unless you need to borrow money, what does it matter what your credit score is?

 

[SMSgt]

we paid our mortgage off years ago... it gave me peace of mind not piece of mind... it was a great part of our life taken care of... allowed me to "involuntarily retire" without consequences almost 3 years ago.. and for those that are told "oh invest instead".. you are told that by someone getting a percentage of that and who doesn't pay the taxes on income or that has to suffer any of the losses... good luck...

EDIT: I have never wanted a BMW.. my tastes go a different direction...

A partial truth. I do believe that all financial advisors have to pay income tax on all income--just like the rest of us--no matter where that income comes from.

 

[robvious]

A partial truth. I do believe that all financial advisors have to pay income tax on all income--just like the rest of us--no matter where that income comes from.

My apologies, I meant you have to pay income taxes if they manage to make you a profit, and they assume no risk if you have a loss.. sorry if I wasn't clear in my statement. .. carry on

 

[Golddollar]

Both Batmobiles and the Batcave are paid for.

 

[tops]

Finding that is the hard part. I trust myself more than anyone else so I do my own planning. It has worked for 20 years and I think it will work for a few more years. Larry

 

[Narragansett]

If I hadn't paid off my mortgage, I never would have been able to retire when I did. But because I did, I now live quite comfortably in retirement.
In fact, I have no loans out at all. My vehicles are also paid for. All I have are regular monthly expenses such as electricity, water, groceries, gas and such.
But there's a catch. The less money you owe, the lower your credit score is. Yeah, makes no sense to me either. Back when I was still working and had a mortgage, I had excellent credit. But now, being retired and completely out of debt, my credit score had dropped well over 100 points. WTH?

I have been retired almost 13 years, and that never happened to me. Scores are still up there. I have no debt of any kind. I do however use a credit card and pay it off monthly. That gets me cash back, and works in a positive mode on the credit score

 

[URIT]

I'd rather carry a home mortgage than a car loan. The first is often an appreciating asset while the later is depreciating.

About 40 years ago, I read that the Swedes start off with a $100,000 mortgage and die with a $100,000 mortgage. It made sense to me then, so I've always treated a home mortgage as a good fix liability rather than a burden.

I buy quality used cars with cash and hold them for the long term. My last car purchase was a 2005 Infinity coupe in 2012.

 

[Krogen]

Finding that is the hard part. I trust myself more than anyone else so I do my own planning. It has worked for 20 years and I think it will work for a few more years. Larry

You are spot-on! That's been my experience. A number of times since my late 20's I've attempted to find a financial advisor. Most of them were commissioned or wanted a percentage of my assets to manage my investments. Most recently a financial planner at a large mutual fund company wanted to take me on as a client - at no cost. ??? For the life of me I couldn't get him to cough up how he was compensated. I don't begrudge anybody earning money; I just wanted transparancy. Follow the money. That philosophy will keep you well-informed. Perhaps the best advice I ever had was from the first advisor I approached way back when. He just said "keep doing what you're doing. You don't need me." Most excellent advice. He wasn't going to get rich of me as a newbie and advised slow and steady.

So decades later: No mortgage, no BMW. But I have everything I need, and for that matter, everything I want. I've managed my own finances all these years and the best advice I received was just an early nudge.

 

[llowry61]

My apologies, I meant you have to pay income taxes if they manage to make you a profit, and they assume no risk if you have a loss.. sorry if I wasn't clear in my statement. .. carry on

Some consider a hefty tax bite on income or investment growth a good problem to have.

Tax planning and healthcare are the other elements of a comprehensive retirement plan. Especially since many folks have a substantial portion of their retirement funds in pre-tax 401K's IRA's etc. and an average retiree will spend close to 300k in medical expenses during retirement.

 

[bigwheelzip]

About 40 years ago, I read that the Swedes start off with a $100,000 mortgage and die with a $100,000 mortgage.

When we lived in Switzerland, the homeowner Swiss typically had perpetual mortgages also (likely over a million dollars value), though interest rates are near zero and bank regulations require the note be held locally.
The debt didn't stop them from having the world's highest incomes and standards of living.


Sent from my motorola one 5G using Tapatalk

 

[GypsmJim]

But there's a catch. The less money you owe, the lower your credit score is. Yeah, makes no sense to me either. Back when I was still working and had a mortgage, I had excellent credit. But now, being retired and completely out of debt, my credit score had dropped well over 100 points. WTH?

Must be more to the story. Yes, it's true you're credit score is adjusted to how much you owe, but it is also based on how much credit you actually have, whether you use it or not.

I use 2 credit cards - one for "daily" purchases, and the other for regular monthly expenses, like utility bills and such. But, I also have 8 or 9 more, which were only added because of a special one-time discount. Those have never been used again, but are still in my credit history.

I pay all my cards off each month and have never incurred an interest charge. If I can't afford something, I simply don't buy it, as opposed to using credit to get it.

My credit score hovers around 820. Why do I care? You betcha I do! It's not that I intend to borrow money. Insurance companies look at that and your rates can be affected.

 

[375hh1973]

Two good jobs and zero kids, we paid off the mortgage quickly.

I don't view a paid off mortgage as a status symbol at all.

Now my new Seekins rifle and Nightforce scope, well thats a different deal

 

[quikdraw67]

No mortgage or car payments. No BMW either, but that's OK.

Not sure what 2023 will bring, but if we sell and move, I don't want a mortgage payment.

I plan on running Tiggy until she dies of old age.

 

[smoothshooter]

I was listening to a financial program on the radio today, and the host said that a paid off mortgage has replaced the BMW as a status symbol.

There may be hope for us yet

Unfortunately, that advice from Dave Ramsey is ignored by most people.