|
Post by lawrencecountyhunter on Apr 4, 2017 12:22:45 GMT -5
Explain how this is a BAD Idea....Do tell BTW....your basically paying your self back![/quote] You sacrifice the earnings that might have accrued on the borrowed money,had it remained in your retirement account. Although you pay the loan amount back to your retirement account with interest, the amount of interest paid may be less than what you might have earned if the money had remained in your retirement account. Also, as already mentioned - you are paying off the loan with after tax dollars... So your 2.35% loan in not really 2.35%[/quote] What would be a way to save money for a down payment without paying taxes, and without sacrificing earnings potential by having it invested? Can anyone show me, mathematically, how you're better off putting money in a savings account and withdrawing it vs. saving in your 401k and borrowing it from yourself? The only reason that I've seen is just the principle of not dipping into money earmarked for retirement. I haven't seen/understood any hard numbers on how you're better off saving outside of a retirement account.
|
|
|
Post by greghopper on Apr 4, 2017 12:38:29 GMT -5
Bingo...
|
|
|
Post by swilk on Apr 4, 2017 12:45:37 GMT -5
Explain how this is a BAD Idea....Do tell BTW....your basically paying your self back! You sacrifice the earnings that might have accrued on the borrowed money,had it remained in your retirement account. Although you pay the loan amount back to your retirement account with interest, the amount of interest paid may be less than what you might have earned if the money had remained in your retirement account. Also, as already mentioned - you are paying off the loan with after tax dollars... So your 2.35% loan in not really 2.35% Outside of, but in addition to, is what I bet most people mean. Basically saving for retirement is priority number 1 and not to be interrupted by anything else. Then saving for the "wants" in life. Not that I agree or disagree .... In some cases folks are sharp enough to consider all the angles of borrowing against their retirement and can make it work. In some cases they cant make it work. Im not gonna lose any sleep over it ....
|
|
|
Post by nfalls116 on Apr 4, 2017 18:28:39 GMT -5
Well... this is all over my head. Best advice I have for a guy wanting to spend his money is don't buy a car at a buy here pay here. Also don't find yourself in retirement saying I have all this money but I wish I had done more during my life
|
|
|
Post by bill9068 on Apr 4, 2017 18:57:32 GMT -5
Land is a wise purchase, they aren't making anymore of it.
|
|
|
Post by nfalls116 on Apr 4, 2017 19:58:45 GMT -5
Sounds like if you can retire or work from home and live around Evansville you need to sell property and go to Kentucky I heard another story very similar once
|
|
|
Post by greghopper on Apr 4, 2017 20:15:47 GMT -5
Sounds like if you can retire or work from home and live around Evansville you need to sell property and go to Kentucky I heard another story very similar once Log Cabin..?
|
|
|
Post by bill9068 on Apr 4, 2017 20:40:49 GMT -5
I agree with falls, if your family didn't own property around vanderburgh county, you have to be wealthy to buy some. Within a mile of me one guy bought 22 acres for 660k and another 62 acres for 1.2 million.
|
|
|
Post by Jamie Brooks 1John5:13 on Apr 4, 2017 22:37:11 GMT -5
County folks sure are glad they don't have city folk problems. Me, I'm glad that I don't have rich folk problems. I don't worry about land prices or 401K values; I just live for today, and happy for it.
Now, if someone wanted to give me their rich people problems, I would sacrifice and help them out. That's just the kind of guy I am ...always willing to help.
|
|
|
Post by realhunter on Apr 5, 2017 5:39:30 GMT -5
You sacrifice the earnings that might have accrued on the borrowed money,had it remained in your retirement account. Although you pay the loan amount back to your retirement account with interest, the amount of interest paid may be less than what you might have earned if the money had remained in your retirement account. Also, as already mentioned - you are paying off the loan with after tax dollars... So your 2.35% loan in not really 2.35% Outside of, but in addition to, is what I bet most people mean. Basically saving for retirement is priority number 1 and not to be interrupted by anything else. Then saving for the "wants" in life. Not that I agree or disagree .... In some cases folks are sharp enough to consider all the angles of borrowing against their retirement and can make it work. In some cases they cant make it work. Im not gonna lose any sleep over it .... Also, A retirement loan is not a mortgage. Therefore, the retirement loan interest payments are not tax deductible, as they might be for a mortgage or home equity loan.
|
|
|
Post by boonechaser on Apr 5, 2017 8:36:28 GMT -5
My thoughts are. 1) Interest rates are near all time lows and starting to rise. Just bought 32 acres and looking to buy another 60-70 before summers end. 2). Interest rates are expected to rise so right now is as good as it gets for me in my lifetime. I'm buying and borrowing as much as I can at theses low rates. Have zero personal debt so the time is now for me. Note: Everything I'm buying is adjoined to our home property so I can tie into fixed rate mortgage. Current rate 3.0%
|
|
|
Post by Jamie Brooks 1John5:13 on Apr 5, 2017 9:18:24 GMT -5
My thoughts are. 1) Interest rates are near all time lows and starting to rise. Just bought 32 acres and looking to buy another 60-70 before summers end. 2). Interest rates are expected to rise so right now is as good as it gets for me in my lifetime. I'm buying and borrowing as much as I can at theses low rates. Have zero personal debt so the time is now for me. Note: Everything I'm buying is adjoined to our home property so I can tie into fixed rate mortgage. Current rate 3.0% A rich guy like you would probably have a few bags of corn seed in your barn to give away ...you think?
|
|
|
Post by trapperdave on Apr 5, 2017 9:27:09 GMT -5
When you invest in land, you will always come out ahead. It can always be sold for a profit. They aren't making any more of it...and the population continues to grow.
|
|
|
Post by Jamie Brooks 1John5:13 on Apr 5, 2017 9:48:21 GMT -5
...until someone takes it away like we did to the Indians.
|
|
|
Post by boonechaser on Apr 5, 2017 9:51:03 GMT -5
My thoughts are. 1) Interest rates are near all time lows and starting to rise. Just bought 32 acres and looking to buy another 60-70 before summers end. 2). Interest rates are expected to rise so right now is as good as it gets for me in my lifetime. I'm buying and borrowing as much as I can at theses low rates. Have zero personal debt so the time is now for me. Note: Everything I'm buying is adjoined to our home property so I can tie into fixed rate mortgage. Current rate 3.0% A rich guy like you would probably have a few bags of corn seed in your barn to give away ...you think? Not rich. But yes John I am always willing to help a fellow sportsman out. Got 30 or so sample seed corn bags. Can spare a few. 😋
|
|
|
Post by steiny on Apr 5, 2017 10:22:46 GMT -5
When you invest in land, you will always come out ahead. It can always be sold for a profit. They aren't making any more of it...and the population continues to grow. This is just plain wrong. There are a whole lot of people out there who are land poor, bit off more than they could chew, and basically lost it all over their obsession to acquire land. Watched a neighbor do this several years ago. You have to buy it right, and you need to have the ability to pay for it as well as pay the taxes and any upkeep. Some stuff, particularly hunting land, won't appreciate in value very quickly because it doesn't produce substantial income.
|
|
|
Post by trapperdave on Apr 5, 2017 11:07:25 GMT -5
That's why you diverse. Half tillable, half wooded. Farm or rent the tillable and it pays for itself. Land value will always go up.
I can't help the fools that bite off more than they can chew...
|
|
|
Post by popcornridgevevay on Apr 5, 2017 11:57:32 GMT -5
I bought 46 acres of land in Switzerland county two years ago and was able to pay cash because I sold my place in Brown County. Land in Brown County is $10,000 per acre. Land in Switzerland county sells for $1500 per acre. I bought land in Brown about 18 years ago so we made a good profit.
|
|
|
Post by swilk on Apr 5, 2017 12:21:57 GMT -5
That's why you diverse. Half tillable, half wooded. Farm or rent the tillable and it pays for itself. Land value will always go up. I can't help the fools that bite off more than they can chew... How does receiving $150-250 per acre cash rent pay for acreage that you paid $10,000 per acre for? Land (like we are discussing here) does not pay for itself .... not until/unless you sell it for more than you buy it for.
|
|
|
Post by trapperdave on Apr 5, 2017 12:53:16 GMT -5
Lol....I didn't pay 10k...and wouldn't....Ill sell it for that thought Buy smart sell smarter
|
|