Does it always make sense to make extra payments on mortgage

Re: Does it always make sense to make extra payments on mort

Postby DDEATH » Sun Feb 26, 2012 10:51 am

ucanit wrote:DD, you do find yourself in a precarious position. Try to make a little more and, if the least little thing goes wrong, you'll wind up worse off.

I know you're going to tell me to go get my tin hat :lol: , but there are a lot of situations like yours that are "baked in the pie" or, should I say programmed into the system to manipulate and control the wealth of citizens.

Say what you want, but you’ll never convince me that this shit just happened. I am certain that it is by design, intentional and planned…by whomever!!! Hell, maybe you have a guess!!


Ucanit,

I don't really think it's a conspiracy.......... I just happen to be near that cutoff point which was set long before I came along. It was enacted to help seniors who really needed the help. I consider myself very fortunate to have the CSR. From what I gather, about 80-90% of retirees are living on lower pensions than we enjoy; some of them a LOT LESS!

I'm actually sitting here, wondering if I even want to make more money, considering the headaches that may come with an increase in income. My only driving force seems to be a need to leave my grandchildren something to make their lives a little easier.........
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Re: Does it always make sense to make extra payments on mort

Postby DDEATH » Sun Feb 26, 2012 11:08 am

daisycutter wrote:Its nice to see that i'm not alone in tackling debt, and trying to accumulate REAL wealth by investing heavily in my thrift savings plan, and other investments. Its seems to me that we live in a world of complete financial stupidity! People live for the here and now, and don't give a rats ass about retirement planning. I just read in today's paper that people are going back to their old ways of racking up debt, and putting everything onto their credit cards again. I remember telling my wife that after a brief period of paying down debt, people would go right back to using their credit cards once again, because they lacked the discipline to say no to themselves. People feel the need to accumulate a bunch of useless garbage, in order to keep up with the family next door. Will anyone ever learn that real financial wealth is accumulated by living BELOW your income, and investing the rest? In reality I think it comes down to one thing: THE LACK OF DISCIPLINE! I guess the time I spent in the marine corps, was time well spent!


I agree that many people buy crap that they don't need on credit. But, I'm sure there are many who are racking up the credit card bills just for the necessities and trying to stay afloat.

Both of my kids are in situations similar to yours, couples working, each with a pretty good job, and able to save for the future. As I often tell them, they are lucky to be at least in the top 20% of family income, in the country.

It's unfortunate that so many good jobs have gone out of the country and the middle class is shrinking. What's even worse is that our politicians seem to be powerless, ignorant, apathetic, or just too controlled by the oligarchies to do anything about it.......... :(
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Re: Does it always make sense to make extra payments on mort

Postby daisycutter » Sun Feb 26, 2012 3:23 pm

DDEATH, I find most peoples economic problems to be self inflicted. Rather then saving up for that VERY important rainy day fund, they spend every last penny they receive on a weekly basis. Rather then saving up 10% for that IRA, Roth IRA, or any other 401k type of retirement fund, they make excuses time and time again, as to why they can't save money. They are the same people that put a brand new car in their driveway every four years, go out to dinner every week, and buy a ENORMOUS amount of junk, that they hardly ever touch. Did these people ever consider taking on a second job, to increase their income, or reduce their spending? Of course not! Its always some politicians fault, or its the "economy". At some point, people have to stop making excuses, and take a good look in the mirror. Maybe the person they see in that reflection, is really the one at fault! Think about it!
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Re: Does it always make sense to make extra payments on mort

Postby ucanit » Sun Feb 26, 2012 7:52 pm

I'm going to make a few comments about things I have observed. You can be the judge of why and who is to blame.

1. I taught some personal finance classes to high school juniors. Less than 5% of them knew how to balance a checkbook.
2. Less than half of all students I have taught actually ever had to work to earn their allowance.
3. Over three-fourths of all students were given their first car (often including insurance and frequently including some gas money).
4. Less than 10% of adults know the benefits of belonging to a credit union have over banking with big commercial banks.
5. Less than 50% of adults have ever asked for a lower interest rate on their credit cards.
6. Less than 20% of adults have ever asked for the consideration of a better insurance rate (for home or car).
7. Over 75% of people who file income tax receive a refund (meaning they let Uncle Sam use their money all year for free instead of investing it for themselves and some people actually use credit to get by all year to ultimately pay down some of that credit debt with their refund).
8. 80% of people never ask for a discount when shopping.
9. Most people accept what banks or financial advisors tell them as true...even though the banks and advisors make more money by giving bad advice to naive, gullible consumers.
10. The majority of financial advice given by government resources is designed to make people functional...not wealthier.

I personally think that it's not so much that people are worthless or sorry...they are just ignorant. Where do you think the blame should lie if they've never been exposed to good financial advice?
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Re: Does it always make sense to make extra payments on mort

Postby daisycutter » Sun Feb 26, 2012 9:26 pm

Professor, I raise my hand with the answer to your last question: The parents! I actually learned my financial lessons from multiple sources. CNBC, financial magazines, financial websites and articles, and listening to bloomberg radio going to work, and from work. Sometimes I wonder if i'm the only mailman who listens to bloomberg radio. When I take my kids to school they often complain to me, and ask why are you listening to the same boring stuff every morning? What they don't realize is that all that listening and reading paved the way to starting a educational savings account for the both of them. Hopefully they will be thanking me later on in their lives.

In regards to financial ad visors, i always looked at them as sharks that are looking for ignorant prey! Most of the products they try to sell you are designed to line their pockets with commissions. From trying to sell you idiotic whole life policies (when TERM life insurance is much better) to trying to sell you loaded mutual funds, and annuity products with huge commissions. I say the best customer is the fully informed one, and that usually means doing it yourself!
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Re: Does it always make sense to make extra payments on mort

Postby DDEATH » Mon Feb 27, 2012 7:36 am

I have to agree with you guys.

I think basic finance should be a public school course required to graduate!

Back in my working days, my job required, literally, thousands of conversations with employees and hundreds of those conversations lead to discussions of personal finances. I even wrote a stand-up talk, which was given twice a year to the whole facility, about investing in the TSP.

Most people have no discipline and/or, are ignorant when it comes to finances. One woman confessed to me that she had outstanding credit card bills of about $24,000. I was shocked! Then a few months later, another woman stated she had $55,000 in credit card debt!

Neither of you mentioned the people who have low-paying job(s), and use credit just for the necessities to get by.

I wonder how many like that are out there? I would guess in the millions........... :(
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Re: Does it always make sense to make extra payments on mort

Postby ucanit » Mon Feb 27, 2012 1:17 pm

Two things...

(1) Daisy, let me suggest that you not only continue to listen to "boring" stuff with your kids...but find a way to engage them in talking about it. For example, ask them to try something similar with their own money as opposed to "usual" or you could use your own money while making a bet with your kids about what the outcome will be. The point is...don't just let them "tune it out." Try to find a way to encourage them to pay attention...even if it seems to them like a game.

(2) DD, I agree there are "some" as you suggest...but I promise you that the overwhelming majority of the ones I've helped and counseled (who seemed to be at the end of their rope and just never could do any better), got to where they are because they were ignorant (and I emphasize, not stupid or lazy, just never exposed) about all things financial.
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Re: Does it always make sense to make extra payments on mort

Postby WestTX » Sat Mar 10, 2012 4:00 pm

This shitz does hurt my head, butt debt just makes it hurtz more!

It's a mindset, butt I ain't never liked debt. I had to incur debt with two mortgages, butt they were paid off early. I ain't no excessive spender no way, so I put a lil' away in investments with the guidance of a financial advisor. I've also done right well in numismatics, and I ain't jest talk'en bout' the trading of silver and gold.

Somebody mentioned Dave Ramsey. I've heard his radio show, and I tend to live the lifestyle he preaches. On the other hand, I've also listened to Ric Edelman, and he seems to be right on top of things. He argues about extending mortages for as long as possible, and investing the difference for a higher rate of return. My hunch is that he's on target, butt I ain't as comfortable with that. He's also not a big fan of these college investment plans through the states, especially given the conditions of today's state budgets and excessive spending.

This financial shitz is really a science that Ucanit seems to take the lead on, and the rest of you boys appear to be smart on it too. I hired someone to work with me many years ago, and I've been satisfied over the years. My son keeps an eye on things for me in his CPA world of things. I give to a number of charities, and I enjoy doin' it. I ain't po, and I ain't filthy rich, butt I'm comfortable.

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Re: Does it always make sense to make extra payments on mort

Postby DDEATH » Mon Mar 12, 2012 9:11 am

Tex, Glad you are financially set. Like you, I ain't rich, but I'm comfortable.

Debt is like shitz.......... there's good shitz and bad shitz. :idea:

99%, or thereabouts, of homeowners wouldn't be homeowners if we couldn't borrow or get a mortgage on a property, as I'm sure you well know. I think with today's low rates(less than 4% for 30 years), coupled with the HUGE drop in sales' prices, it's a great time to buy a home.

Credit cards can be good, or bad. It's all in how you use them, We use one credit card for most purchases, including gasoline, groceries, and miscellaneous monthly expenses. I pay it in full every month. We get airline miles which we've used for free flights. I've had credit cards for almost 40 years and carried a balance over for, maybe, three months in all that time.

In some instances, it may be beneficial to carry a balance for a few months. If you are saving money for a large purchase and it goes on sale for 50% off, and you don't have all the cash needed to buy it, it will most likely be advantageous to buy it with a credit card and pay it off in a few months.

I always tell people, "credit cards are tools, like a hammer; you can smash your thumb with it, or pound enough nails with it to build a house."

I am presently thinking of switching to this card. Let me know what you guys think..........

https://creditcards.chase.com/sapphire/ ... ndSapphire
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Re: Does it always make sense to make extra payments on mort

Postby ucanit » Tue Mar 13, 2012 2:18 pm

DD, it sounds to me that you've got a good handle on your finances. So long as you and your wife are able to use (and are comfortable with) the mileage rewords associated with your card(s), I'd say you're smart enough to know what's best and you have enough self-control to only use the card(s) to your personal benefit. The only reservations I have are with (1) the annual fee and the interest rates (15.9-29.9%), which I think are excessive.
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