Merry Generic Winter Day-Off With No Religious Content

[Adder]

Originally posted by ltl/fb
I sort of did that with my student loans -- what are we supposed to do with bonuses? Unless you are talking about the tax break.

Student loans are one thing, the house is another. From a purely financial point of view (a little leverage is a good thing), there isn't a lot of reason to pay down either (depending on the rates), other than peace of mind.

But yeah, with the house you are also throwing away the tax advantages.

Of course, to each his or her own, and maybe debt causes her enough anxiety that the peace of mind is worth it.

ETA: you could save your bonus for retirement.

[patentparanyc]

Originally posted by Adder
Student loans are one thing, the house is another. From a purely financial point of view (a little leverage is a good thing), there isn't a lot of reason to pay down either (depending on the rates), other than peace of mind.

But yeah, with the house you are also throwing away the tax advantages.

Of course, to each his or her own, and maybe debt causes her enough anxiety that the peace of mind is worth it.

ETA: you could save your bonus for retirement.

Pay off your car? ours is almost paid off this year and I cannot wait. That will free up some nice cash for us. I imagine paying down either the house or the loans could be basically the same idea...

[ltl/fb]

Originally posted by Adder
Student loans are one thing, the house is another. From a purely financial point of view (a little leverage is a good thing), there isn't a lot of reason to pay down either (depending on the rates), other than peace of mind.

But yeah, with the house you are also throwing away the tax advantages.

Of course, to each his or her own, and maybe debt causes her enough anxiety that the peace of mind is worth it.

ETA: you could save your bonus for retirement.

i assume everyone pulling down the big money is already maxing out their 401(k) -- though probably supplemental saving is not a bad idea. Esp maxing out in 2003; the limits were lower.

[Replaced_Texan]

Originally posted by Adder
Student loans are one thing, the house is another. From a purely financial point of view (a little leverage is a good thing), there isn't a lot of reason to pay down either (depending on the rates), other than peace of mind.

But yeah, with the house you are also throwing away the tax advantages.

Of course, to each his or her own, and maybe debt causes her enough anxiety that the peace of mind is worth it.

ETA: you could save your bonus for retirement.

I've never really understood this. Why is paying interest to get the tax break on the interest better than not paying any interest at all? I suppose if the deduction knocks you down a tax bracket, there's some wisdom there, but I don't really see how paying, say, $18,000 to a bank a year in order to get $6,000 back in taxes is better than paying nothing to the bank.

[ThurgreedMarshall]

Originally posted by Did you just call me Coltrane?
Do you watch the show? It's outstanding, and she is completely unneccessary.

So she's the new Lonnie Anderson?

I don't watch the show. I think I'll start watching the re-runs. I watched the first show and it was horrible. But I've heard it's improved. I had trouble with it because I really don't think Tracy Morgan is funny at all.

TM

[ltl/fb]

Originally posted by Replaced_Texan
I've never really understood this. Why is paying interest to get the tax break on the interest better than not paying any interest at all? I suppose if the deduction knocks you down a tax bracket, there's some wisdom there, but I don't really see how paying, say, $18,000 to a bank a year in order to get $6,000 back in taxes is better than paying nothing to the bank.

The tax break effectively lowers the interest rate you are paying by whatever your tax rate is (e.g. if you are in the 35% federal bracket, multiply the interest rate by .65 to determine your actual interest rate after taking the tax break into effect -- a 7% nominal rate would be a 4.55% after-tax rate). That makes it more likely that you could take the same money and invest it at an interest rate that is higher than the rate you are being charged by the bank.

This benefit is obviously greater for people in higher tax brackets, and is of no benefit for people who don't earn enough to pay taxes.

[Cletus Miller]

Originally posted by Replaced_Texan
I've never really understood this. Why is paying interest to get the tax break on the interest better than not paying any interest at all? I suppose if the deduction knocks you down a tax bracket, there's some wisdom there, but I don't really see how paying, say, $18,000 to a bank a year in order to get $6,000 back in taxes is better than paying nothing to the bank.

It isn't, unless you are taking that $6,000 and investing in something with a higher return that what you are paying the bank. Generally, you can't borrow cash as cheaply as with a mortgage.

Also, the tax break allows one to buy a house one wouldn't otherwise be able to afford. I think this is bullshit--if you need the dedcution to afford the house, you can't afford the house.

[Adder]

Originally posted by ABBAKiss
What is the aftermath? I don't recall any aftermath. I never did anal in high school.

I think the original participant in the story might have been me, although I don't specifically recall sharing.

Anyway, with this sort of activity, it may not surprise you, but there can be some... odors... released that are not entirely pleasing.

[Adder]

Originally posted by ltl/fb
i assume everyone pulling down the big money is already maxing out their 401(k) -- though probably supplemental saving is not a bad idea. Esp maxing out in 2003; the limits were lower.

Some supplemental saving is essential in my view.

Then again, I want to retire comfortably, and as soon as possible.

[ThurgreedMarshall]

Originally posted by Adder
I think the original participant in the story might have been me, although I don't specifically recall sharing.

Anyway, with this sort of activity, it may not surprise you, but there can be some... odors... released that are not entirely pleasing.

Whiff.*

TM

*Intentional double-entendre.

[Adder]

Originally posted by Replaced_Texan
I've never really understood this. Why is paying interest to get the tax break on the interest better than not paying any interest at all? I suppose if the deduction knocks you down a tax bracket, there's some wisdom there, but I don't really see how paying, say, $18,000 to a bank a year in order to get $6,000 back in taxes is better than paying nothing to the bank.

It is the spread you can earn on investing the money elsewhere. That spread is widened by the fact that you are paying the interst in pre-tax money.

So, you are paying 6% interest (for example), but because it is pre-tax it is effectively 4% interest, any return you get on investing the money elsewhere greater than 4% is extra benefit you got because of the leverage.

[Shape Shifter]

Originally posted by dtb
I am surprised she is 18. She looks more like 15.

What ever happened to the enforcement of child labor laws? Sheesh.

[ltl/fb]

Originally posted by Shape Shifter
What ever happened to the enforcement of child labor laws? Sheesh.

I'm sure she gets tutored on the set.

Heh.

[Penske_Account]

Originally posted by Greedy,Greedy,Greedy
How did it descend to this level when the conversation began with talk of interesting and offbeat fetishes?

.

I miss lactation lover [sniff]

[robustpuppy]

Originally posted by Adder
I think the original participant in the story might have been me, although I don't specifically recall sharing.

Anyway, with this sort of activity, it may not surprise you, but there can be some... odors... released that are not entirely pleasing.

You are being too vague. I wish you would explain more.