Deciding to pay off house with retirement savings...

[unchained]

For all the hate financial advisors are getting in this thread, any decent one would have told him about the tax implications.

 

[JLane330]

I know of a few investment options that will guarantee 9-10% return if you have 250k+

I'm interested in what these investment options might be. Seems tough to find guaranteed returns this high these days. Thanks!

 

[Blaw]

Guys it’s principal, not principle.

uh oh the spelling police are here

 

[huntnful]

For all the hate financial advisors are getting in this thread, any decent one would have told him about the tax implications.

Hahaha no shit! You live and learn though!

Ended up doing a 15 year refi at 2.25%.

Old loan was: $261,500
23 years 6 months remaining. $1580 month
4.5% APR
$600 Principle $980 Interest on current payment.

New Loan: $265,500 (refi fee and closing costs)
15 Years. $1750 month
2.25% APR
$1250 Principle $500 Interest on the first payment.

Knocked 8 1/2 years off the loan for $170 a month and the vast majority of my money will be going towards principle instead of interest now, which I like A LOT.

I'm just putting my money back in the market tomorrow and I'll get back on my saving and investing routine like I have been the last four years and never look back. I'll pay the taxes with my savings and learn my lesson and get on with my life. Minor mistake in the big scheme of things, so I won't dwell on it. I've always learned shit the hard way anyways hahaha.

Thanks for all of your help, insight, perspectives and time everyone!! I seriously do appreciate it!!

 

[TxxAgg]

uh oh the spelling police are here
View attachment 245113

If you want to participate in the dumbing down of America, be my guest. Spelling and punctuation are important, though.

 

[30338]

Hahaha no shit! You live and learn though!

Ended up doing a 15 year refi at 2.25%.

Old loan was: $261,500
23 years 6 months remaining. $1580 month
4.5% APR
$600 Principle $980 Interest on current payment.

New Loan: $265,500 (refi fee and closing costs)
15 Years. $1750 month
2.25% APR
$1250 Principle $500 Interest on the first payment.

Knocked 8 1/2 years off the loan for $170 a month and the vast majority of my money will be going towards principle instead of interest now, which I like A LOT.

I'm just putting my money back in the market tomorrow and I'll get back on my saving and investing routine like I have been the last four years and never look back. I'll pay the taxes with my savings and learn my lesson and get on with my life. Minor mistake in the big scheme of things, so I won't dwell on it. I've always learned shit the hard way anyways hahaha.

Thanks for all of your help, insight, perspectives and time everyone!! I seriously do appreciate it!!

Good plan. Experience never comes cheap but you're doing great. Now stick to the plan and succeed wildly.

 

[elkyinzer]

Hahaha no shit! You live and learn though!

Ended up doing a 15 year refi at 2.25%.

Old loan was: $261,500
23 years 6 months remaining. $1580 month
4.5% APR
$600 Principle $980 Interest on current payment.

New Loan: $265,500 (refi fee and closing costs)
15 Years. $1750 month
2.25% APR
$1250 Principle $500 Interest on the first payment.

Knocked 8 1/2 years off the loan for $170 a month and the vast majority of my money will be going towards principle instead of interest now, which I like A LOT.

I'm just putting my money back in the market tomorrow and I'll get back on my saving and investing routine like I have been the last four years and never look back. I'll pay the taxes with my savings and learn my lesson and get on with my life. Minor mistake in the big scheme of things, so I won't dwell on it. I've always learned shit the hard way anyways hahaha.

Thanks for all of your help, insight, perspectives and time everyone!! I seriously do appreciate it!!

The math adds up.

I have no idea why I learned calculus. Haven't applied it a single time in my career as a CPA. But I am damn glad I learned super-simple money math before I ever earned a cent.

Amazing the resource the internet is in 2020 and beyond. Don't be confused by the intentionally generated over-complications. Nailing the fundamentals is the surest way to generate long term wealth.

 

[Throwin Darts]

uh oh the spelling police are here
View attachment 245113

Half the people on this thread want to give the guy advice but don't know the difference between principal and principle. But hey, you keep doing you.

 

[Throwin Darts]

Hahaha no shit! You live and learn though!

Ended up doing a 15 year refi at 2.25%.

Old loan was: $261,500
23 years 6 months remaining. $1580 month
4.5% APR
$600 Principle $980 Interest on current payment.

New Loan: $265,500 (refi fee and closing costs)
15 Years. $1750 month
2.25% APR
$1250 Principle $500 Interest on the first payment.

Knocked 8 1/2 years off the loan for $170 a month and the vast majority of my money will be going towards principle instead of interest now, which I like A LOT.

I'm just putting my money back in the market tomorrow and I'll get back on my saving and investing routine like I have been the last four years and never look back. I'll pay the taxes with my savings and learn my lesson and get on with my life. Minor mistake in the big scheme of things, so I won't dwell on it. I've always learned shit the hard way anyways hahaha.

Thanks for all of your help, insight, perspectives and time everyone!! I seriously do appreciate it!!

I think you made an outstanding decision in going with the 15 year refi. You've put yourself in a position to pay off the home much sooner all the while saving a ton in interest. Put your money back to work and keep doing what you've been doing and you'll be in a great spot.

 

[fwafwow]

Minor mistake in the big scheme of things, so I won't dwell on it. I've always learned shit the hard way anyways hahaha.

Don't lose too much sleep over it. There are people with much larger portfolios who are concerned enough about taxes increasing that they have sold in order to recognize income now at the current tax rates.

 

[Blaw]

If you want to participate in the dumbing down of America, be my guest. Spelling and punctuation are important, though.

Everyone in North America is doing a fine job of that already.

Half the people on this thread want to give the guy advice but don't know the difference between principal and principle. But hey, you keep doing you.

Do you think every successful person is a great speller? Is every person that reads well good at spelling and grammar? And what does that have to do with financial decisions anyway? We are not writing an English paper.

Carry on keyboard warrior

 

[WhatToHunt]

Everyone in North America is doing a fine job of that already.

Do you think every successful person is a great speller? Is every person that reads well good at spelling and grammar? And what does that have to do with financial decisions anyway? We are not writing an English paper.

Carry on keyboard warrior

Right on. I know some educated folks who interchange typing "quite" when they mean "quiet" and others who say "expecially" when they obviously mean to say "especially." Grinds my gears when I see it/hear it, but they're good at what they do. But if I notice my kids doing similarly, then it's a coaching opportunity.

 

[rayporter]

math wizards

where would he be if he increased the original payment of 1580 per month to 1800 per month?

just pay an extra 2600 per year with out a refi? how much sooner would the original loan be paid off?

 

[texag10]

math wizards

where would he be if he increased the original payment of 1580 per month to 1800 per month?

just pay an extra 2600 per year with out a refi? how much sooner would the original loan be paid off?

Had to do some rough math to get the original loan value, assuming that's 302k, he'd pay off in just under 19 years, save approx 37k in interest.

The refi was a better option.

 

[Will_m]

uh oh the spelling police are here
View attachment 245113

When it comes to principal, sometimes it’s just the principle of the matter.

 

[fwafwow]

Even though I prefer correct spelling, I also thought the meme w/ the cops was hilarious. This isn't a vax thread, so we should all be ok with a bit of back and forth/teasing/chop busting - IMHO.

With that as my opening:

 

[unchained]

Hahaha no shit! You live and learn though!

Ended up doing a 15 year refi at 2.25%.

Old loan was: $261,500
23 years 6 months remaining. $1580 month
4.5% APR
$600 Principle $980 Interest on current payment.

New Loan: $265,500 (refi fee and closing costs)
15 Years. $1750 month
2.25% APR
$1250 Principle $500 Interest on the first payment.

Knocked 8 1/2 years off the loan for $170 a month and the vast majority of my money will be going towards principle instead of interest now, which I like A LOT.

I'm just putting my money back in the market tomorrow and I'll get back on my saving and investing routine like I have been the last four years and never look back. I'll pay the taxes with my savings and learn my lesson and get on with my life. Minor mistake in the big scheme of things, so I won't dwell on it. I've always learned shit the hard way anyways hahaha.

Thanks for all of your help, insight, perspectives and time everyone!! I seriously do appreciate it!!

You are doing everything else right, good on you. Next time you make a large financial decision it might be a good idea consult an advisor or CPA. Otherwise keep doing what you are doing, you are doing a great job saving and investing.

 

[huntnful]

Hahaha I'm 100% down for crude, untimely jokes. They fuel my life lol.

Yeah the whole deal is done now. Just put all my money back into an index fund and set back up for $500 weekly payments. I always add more if I start to accumulate money from working OT. But $26k a year is my baseline. This will just be something I laugh about in 15 years when the house is paid off and I have a hefty investment account I get to draw from to get me to my pension.

I'll 100% do some consulting BEFORE I make decisions next time hahaha!

 

[dirtytough]

I read most of the thread. I believe you should spend some time on bogleheads.org.

There are a few extremely educated people on there when it comes to finances. Also I didn’t see it mentioned but if you haven’t been you should be using a Roth also.

 

[BRTreedogs]

Lol I'm the opposite. Currently not educated, or patient enough for investment.
Sold out of my income producing rental.
Plopped the money down on my mortgage.
Just closed a refi to drop percentage and shorten term.
The only guarantee that I know of is if I pay the house off sooner is ill pay less interest. Thats a fact.

But my ultimate goal is much different.
I want to quit my job and just work enough small jobs to pay for hunting.
I hate working well mostly I hate people and I just don't want to work with them. Also I get lots threats about taking time off.
Since Idk how to get rich im gonna try living poorer.
And if I want to much time off for work. Well I quit then.