From: Roger Wright [mailto:[email protected]] Sent: Tuesday, 13 January 2009 10:20 AM To: NT System Admin Issues Subject: RE: Would this be good for IT, or what? (UNCLASSIFIED)
It's not a true asset if you still owe money on it. Well, it's still an asset - you just don't own it. I'm not sure what a "true asset" is (as opposed to any other asset). Surely anything that has value to someone else is an asset. Anything you owe to someone else is a liability. In any case, I'm not sure what this has to do with anything I said. I said that things aren't as clear cut as paying your mortgage (and getting a tax deduction) or being debt free. Having no mortgage entails an opportunity cost - you're giving up the opportunity to go and buy $200,000 (or whatever) in other assets. Since the government is effectively giving you a tax break when you invest in other assets (by making your interest costs deductible), it might be wise to investigate other investment options. Sometimes you'll still come to the conclusion that paying the mortgage is best. You also have to consider the "return " of not having any debt. True, it's not always tangible but there's nothing like having that pressure off your shoulders. Sure. That's about understanding your risk profile. Some people are more comfortable with risk than others. Do not load yourself up with additional risk if it's just going to bring you stress. The marginal reward you'll get probably isn't worth the cost. Cheers Ken Roger Wright Network Administrator Evatone, Inc. 727.572.7076 x388 _____ From: Ken Schaefer [mailto:[email protected]] Sent: Monday, January 12, 2009 5:50 PM To: NT System Admin Issues Subject: RE: Would this be good for IT, or what? (UNCLASSIFIED) Why don't you take the money that you'd otherwise sink into your mortgage and buy some other asset that will yield you a better return? Would you put your money in a bank that gave you 1% if you could put it into a bank that gave you 2%? Sure you'll get a return from the first bank, but you're forgoing a (opportunity cost) 1% additional return by not investing in the second. If putting money into your mortgage is the best investment - then do it. But it seems that in your country, the government is giving other investments a tax break by making it more expensive for you to pay out your mortgage... Cheers Ken From: Ben Schorr [mailto:[email protected]] Sent: Tuesday, 13 January 2009 6:30 AM To: NT System Admin Issues Subject: RE: Would this be good for IT, or what? (UNCLASSIFIED) But that tax deduction on your mortgage interest is only partial. I mean you can deduct the interest, yes, but that deduction is only at your tax rate - 33% or whatever. So you're going to pay a bank $12,000 a year (or whatever) to keep from paying the government $4,000? That doesn't seem like a good plan to me. :) I'd rather pay off the mortgage and not have that debt at all. Ben M. Schorr Chief Executive Officer ______________________________________________ Roland Schorr & Tower www.rolandschorr.com<http://www.rolandschorr.com/> [email protected]<mailto:[email protected]> From: David Mazzaccaro [mailto:[email protected]] Sent: Monday, January 12, 2009 9:28 AM To: NT System Admin Issues Subject: RE: Would this be good for IT, or what? (UNCLASSIFIED) Some debt is good debt. For taxes, you do get to deduct the interest on your mortgage...if you pay off your house, you lose that deduction. Additionally, you now have hundreds of thousands of dollars sitting idle in your house that you can do nothing with (until you sell it). ________________________________ From: Webster [mailto:[email protected]] Sent: Monday, January 12, 2009 1:59 PM To: NT System Admin Issues Subject: RE: Would this be good for IT, or what? (UNCLASSIFIED) Yes. But we moved to TN back in August and have a mortgage again. :( I am working on paying it off as fast as possible. Webster From: Jacob [mailto:[email protected]] Subject: RE: Would this be good for IT, or what? (UNCLASSIFIED) Wow.. did that include the mortgage? From: Webster [mailto:[email protected]] Subject: RE: Would this be good for IT, or what? (UNCLASSIFIED) +6 for Dave Ramsey. Paid off $197,000 in debt in 4.5 yrs. Webster From: David Lum [mailto:[email protected]] Subject: RE: Would this be good for IT, or what? (UNCLASSIFIED) +1 times ten! We'll spend thousands sending out kids to college but never teach them the basics of money and not using credit for anything but a house. My parents didn't teach me that, it took me over 40 years (until Feb of last year) to really "get it" (thank you Dave Ramsey). Funny the things we think we *need* to have. Pretty sure 99% of these items our ancestors got along just fine without. Veering nearer to back on topic, adding the need for several thousand IT jobs can't be a bad thing, but I am interested in hearing from IT guys in the healthcare industry what obstacles need to be overcome. It's one thing to say "digitize healthcare records", another entire to pull it off - there must be dozens of little "gotcha's". David Lum // SYSTEMS ENGINEER NORTHWEST EVALUATION ASSOCIATION (Desk) 971.222.1025 // (Cell) 503.267.9764 ~ Finally, powerful endpoint security that ISN'T a resource hog! ~ ~ <http://www.sunbeltsoftware.com/Business/VIPRE-Enterprise/> ~
