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motherface
RealPoor Guru
Joined: 12 Mar 2003
Posts: 3407
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 Posted: 10/18/05 - 20:59 Post subject: Holy f**k - Tax Changes Inc
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Interesting plan to f**k the middle class worse than ever before.
url
I like how health insurance benefits > $11,500 for a family would be treated as taxable income! Lots more goodies in there, like lowering the limit on mortgages with deductible interest and a bunch of other shit that won't matter to the top 1%, and removing taxes from dividends, which will.
October 18, 2005
Panel to Urge Bush to Consider 2 Alternative Tax Plans
By DAVID E. ROSENBAUM
WASHINGTON, Oct. 18 - President Bush's tax advisory commission agreed today to recommend two alternative tax plans, both of which would limit or eliminate almost all tax deductions, including the ones for state and local income and property taxes.
The recommendations, due to be submitted to the president by Nov. 1, were designed so that the tax burden borne by the rich, the middle class and the poor would be roughly the same as they are now.
But the plans would amount to the most fundamental changes in the American tax system in 20 years. Some individuals and businesses could owe much more in taxes and some much less.
"We have focused on big picture ideas that would improve the tax system for a large number of Americans," said the panel's chairman, Connie Mack, a former Republican senator from Florida.
"Simplification has driven this," he said. "Also fairness."
President Bush is not committed to adopting the commission's recommendations, and many of the proposals are sure to be unpopular in Congress.
One of the most important elements of the plans is that they would replace almost all deductions with tax credits. This would mean that an expense, like the interest payments on a modest-sized mortgage, would be worth the same to each taxpayer regardless of income. Deductions are worth more to taxpayers in high brackets than they are to those in lower brackets.
The last time such sweeping changes were made in the tax law was in 1986. Enactment of that measure required the unqualified commitment of President Ronald Reagan, then at the peak of his popularity; the political mastery of his treasury secretary, James A. Baker III; the work of a bipartisan coalition in Congress that included many of the most influential senators and representatives; and two years of intensive maneuvering and horse-trading.
There is no indication now that President Bush, his staff and Congress are prepared to embrace such an effort.
The plans are quite sketchy. There is no written summary, much less legislative language. But the basics could be gleaned from a three-hour discussion this morning at the commission's last public meeting before a final recommendation is written.
For individuals, the two plans are almost identical. These are some of the main elements:
The alternative minimum tax, a steep levy faced by an increasing number of middle-income taxpayers, would be abolished.
The tax break on home mortgages would be sharply limited, especially for expensive houses.
No deduction would be allowed for state and local income and property taxes.
Employer-paid health insurance premiums above $5,000 a year for an individual and $11,500 for a family policy would be treated as income to workers and taxed accordingly.
All taxpayers could deduct charitable donations, but only to the extent they exceeded 1 percent of a taxpayer's income.
Personal exemptions and deductions and credits for children would be eliminated and replaced by a credit of $1,600 for a single person, $3,200 for a couple, $1,500 for each child and $500 for each other dependent.
The myriad savings vehicles available now like individual retirement accounts and 401(k) plans would be replaced by three streamlined savings plans and a refundable savings credit for low-income workers.
The six tax brackets in the existing law would be replaced by four, with a low bracket of 15 percent and a top rate of 33 percent. The top rate now is 35 percent.
The two plans differ on the way they would treat investment income. One would eliminate taxes on dividends entirely, lower the top capital gains rate to 8.25 percent on the sale of stock in American corporations and tax interest income at the same rate as wages and salaries.
The other plan would have a 15 percent rate on dividends, interest and capital gains. The rate now is 15 percent on dividends and capital gains, and interest payments are taxed like earned income.
The commissioners rejected an alternative plan that would have made investment income tax-free. The panel's vice chairman, John B. Breaux, a former Democratic senator from Louisiana, said such a plan was unacceptable politically because some of the wealthiest Americans, those who live off their dividends and capital gains, would owe no taxes.
One of the biggest changes would be the limits on tax breaks for homeowners. Now, all interest payments on mortgage loans smaller than $1 million are deductible.
Both plans would lower the limit to the maximum mortgage the Federal Housing Administration will insure. That level changes each year and varies depending on housing costs in each county, with a maximum loan limit now of $312,895 in communities where housing is most expensive and a national average of about $244,000.
The commission would raise to $600,000 from $500,000 the amount of profits from home sales that would be excluded from capital gains taxes.
Another big change would be the elimination of the tax deduction on state and local taxes.
Together, these two provisions would be difficult to accept for New Yorkers, where house prices are high and income and property taxes are steep.
Senator Charles E. Schumer, Democrat of New York, announced even before the panel had finished its discussion today that he would fight such proposals.
But one of the panel's members, Charles O. Rossotti, a former commissioner of internal revenue, said deductions of state and local taxes were much less valuable than they used to be because, for many taxpayers, they are eaten away by the alternative minimum tax.
The panel was instructed to present plans that would raise as much revenue as the current tax system. And in order raise enough money to abolish the alternative minimum tax, which would generate $1.2 trillion over the next 10 years, the commission had to propose limits on tax breaks.
The two plans to be submitted to the president are quite different in the way they treat businesses, though both would lower the maximum corporate tax rate to 32 percent from 35 percent.
One plan would require investments in plants and equipment by large companies to be written off under depreciation schedules and allow businesses to deduct the interest they pay on loans. This plan would eliminate many of the tax preferences that allow businesses with comparable profits to pay widely different amounts in taxes.
The other plan would allow businesses to write off the cost of plants and equipment in the year the cost is incurred, a system known as expensing, and would disallow deductions of interest.
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Tura
RealPoor Guru
Joined: 29 Oct 2003
Posts: 4865
Location: Raleigh, NC
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Posted: 10/18/05 - 21:02 Post subject:
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Ishmael
RealPoor Guru
Joined: 03 Jun 2005
Posts: 4446
Location: The US of A
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Posted: 10/18/05 - 22:46 Post subject:
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| Tura wrote: | |
WIN!
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lotek
RealPoor Sensei
Joined: 12 Oct 2002
Posts: 1598
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Posted: 10/18/05 - 23:20 Post subject:
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ya, lowering the amount of interest from a mortgage would pretty much s***w me. hope it doesnt happen.
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kireol
RealPoor Master of Posts
Joined: 02 Aug 2003
Posts: 9517
Location: Royal Oak, MI
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Posted: 10/18/05 - 23:48 Post subject:
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if your mortgage is over $312,000, then you are either more than likely already stretched too far, or rich enough that it wont matter.
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lotek
RealPoor Sensei
Joined: 12 Oct 2002
Posts: 1598
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Posted: 10/18/05 - 23:52 Post subject:
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| kireol wrote: | | if your mortgage is over $312,000, then you are either more than likely already stretched too far, or rich enough that it wont matter. |
no and no
lots and lots of people have mortgages over 312,000. practically all of california. The interest on that matters to many middle class.
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kireol
RealPoor Master of Posts
Joined: 02 Aug 2003
Posts: 9517
Location: Royal Oak, MI
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Posted: 10/19/05 - 00:03 Post subject:
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| lotek wrote: | | kireol wrote: | | if your mortgage is over $312,000, then you are either more than likely already stretched too far, or rich enough that it wont matter. |
no and no
lots and lots of people have mortgages over 312,000. practically all of california. The interest on that matters to many middle class. |
| Quote: | # The average mortgage amount is approximately $136,000 for U.S. consumers, with only 10% of consumer mortgages exceeding $250,000.
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again, stretched too far, or too rich it doesnt matter. this comes straight out of the mouths of Experian
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sinrakin
RealPoor Master of Posts
Joined: 11 Oct 2002
Posts: 7044
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Posted: 10/19/05 - 07:25 Post subject:
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| lotek wrote: | | kireol wrote: | | if your mortgage is over $312,000, then you are either more than likely already stretched too far, or rich enough that it wont matter. |
no and no
lots and lots of people have mortgages over 312,000. practically all of california. The interest on that matters to many middle class. |
The stupid thing is if you have a mortgage over $312,000, you probably a) have a decent income, b) live in a state with high income tax, and c) pay a lot of real estate tax. All of which means that there's a pretty good chance that you're already paying AMT, which means you can't even deduct all of your mortgage interest.
Inflation has made it so practically everyone pays AMT these days.
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lotek
RealPoor Sensei
Joined: 12 Oct 2002
Posts: 1598
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Posted: 10/19/05 - 08:29 Post subject:
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| kireol wrote: | | lotek wrote: | | kireol wrote: | | if your mortgage is over $312,000, then you are either more than likely already stretched too far, or rich enough that it wont matter. |
no and no
lots and lots of people have mortgages over 312,000. practically all of california. The interest on that matters to many middle class. |
| Quote: | # The average mortgage amount is approximately $136,000 for U.S. consumers, with only 10% of consumer mortgages exceeding $250,000.
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again, stretched too far, or too rich it doesnt matter. this comes straight out of the mouths of Experian |
thats not straight out of the mouth of anyone. Thats the kirol filter spinning a statistic to suit his argument.
I love that. "too rich it doesnt matter". like your going to sit their with no knowledge whatsoever and tell my about my finances.
a $312k house does not buy you much in lots of places, but I guess you ok with taxing anyone as long as your not effected.
personally, I think we should have a vat. lots of tax on prada type stuff.
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Cethan
Can't Stop Posting
Joined: 18 Oct 2002
Posts: 505
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Posted: 10/19/05 - 08:42 Post subject:
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That "too rich that it doesn't matter" b******t really burns me up. The rich pay more taxes than you do.
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kireol
RealPoor Master of Posts
Joined: 02 Aug 2003
Posts: 9517
Location: Royal Oak, MI
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Posted: 10/19/05 - 09:05 Post subject:
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| lotek wrote: | | kireol wrote: | | lotek wrote: | | kireol wrote: | | if your mortgage is over $312,000, then you are either more than likely already stretched too far, or rich enough that it wont matter. |
no and no
lots and lots of people have mortgages over 312,000. practically all of california. The interest on that matters to many middle class. |
| Quote: | # The average mortgage amount is approximately $136,000 for U.S. consumers, with only 10% of consumer mortgages exceeding $250,000.
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again, stretched too far, or too rich it doesnt matter. this comes straight out of the mouths of Experian |
thats not straight out of the mouth of anyone. Thats the kirol filter spinning a statistic to suit his argument.
I love that. "too rich it doesnt matter". like your going to sit their with no knowledge whatsoever and tell my about my finances.
a $312k house does not buy you much in lots of places, but I guess you ok with taxing anyone as long as your not effected.
personally, I think we should have a vat. lots of tax on prada type stuff. |
the text I quoted is FROM experian as I said. http://www.nationalscoreindex.com/ScoreNews_Archive_02.aspx I must work for experian or something i guess.
Also, you are only further proving my point.
If you own a 312,000 house, and have a 312,000 mortgage, you WAY over bought. Maybe I live my life a bit more conservativley, but I take pride in the fact that I own more of my home than the bank does.
But what do I know about mortgages? It's not like I've worked for years at the 5th largest mortgage broker in michigan. oh wait....yes I have.
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kireol
RealPoor Master of Posts
Joined: 02 Aug 2003
Posts: 9517
Location: Royal Oak, MI
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Posted: 10/19/05 - 09:09 Post subject:
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| Cethan wrote: | | That "too rich that it doesn't matter" b******t really burns me up. The rich pay more taxes than you do. |
they sure do. and yet they also can afford other loopholes the average man cant. paying less taxes. Also, they are only adjusting the amount that is deducatble. they arent adding in some new law to just f**k the insanely rich.
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motherface
RealPoor Guru
Joined: 12 Mar 2003
Posts: 3407
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Posted: 10/19/05 - 09:30 Post subject:
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| Cethan wrote: | | That "too rich that it doesn't matter" b******t really burns me up. The rich pay more taxes than you do. |
Did you type that with a straight face? The rich are the ones who create tax shelters and hire tax lawyers to find them loopholes so they have to pay less tax. Many insanely rich execs give themselves a salary of $1 so they don't have to pay income tax. Who's going to benefit the most from removing taxes on dividends? Same with the changes to insurance benefits.
And so what if the rich get taxed more than the rest of us? Any retard can see that if you make $30,000 and pay $5,000 in taxes it's more of a burden on you than if you make $30 million and pay $6 million in taxes.
As for 312k houses indicating that you're stretched too far, you can't even buy crap houses in NY for under 250k anymore.
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lotek
RealPoor Sensei
Joined: 12 Oct 2002
Posts: 1598
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Posted: 10/19/05 - 09:48 Post subject:
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| motherface wrote: | | Cethan wrote: | | That "too rich that it doesn't matter" b******t really burns me up. The rich pay more taxes than you do. |
Did you type that with a straight face? The rich are the ones who create tax shelters and hire tax lawyers to find them loopholes so they have to pay less tax. Many insanely rich execs give themselves a salary of $1 so they don't have to pay income tax. Who's going to benefit the most from removing taxes on dividends? Same with the changes to insurance benefits.
And so what if the rich get taxed more than the rest of us? Any retard can see that if you make $30,000 and pay $5,000 in taxes it's more of a burden on you than if you make $30 million and pay $6 million in taxes.
As for 312k houses indicating that you're stretched too far, you can't even buy crap houses in NY for under 250k anymore. |
people buying 300k houses dont pay for lawyers looking for loopholes. $300k is completely middle class.
and kirol, you know me by know. Why the f**k are you assuming anything about my mortgage? Hell, I would think that between this thread, and the credit score thread you could at least deduce that I'm farily compentent when it comes to finances. 
we should be encouraging people to buy houses, and put more money into houses. f**k load better than anything else people buy. We should not be penelizing people for being able to afford a nice home.
Otherwise, they should remove all the deductions. If you can afford a $150k house, you can afford the taxes on it. same arugment applies.
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Vashers
Luke Warm
Joined: 28 Jan 2003
Posts: 220
Location: A Cardboard Box
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Posted: 10/19/05 - 10:34 Post subject:
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Where I live in mass most house are going for 250-300+ and it isn't a very rich area, but you have to think about non city areas. If you factor all the people living down south (think alabama) and in the Midwest maybe that Mortgage average is correct
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lotek
RealPoor Sensei
Joined: 12 Oct 2002
Posts: 1598
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Posted: 10/19/05 - 10:49 Post subject:
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| Vashers wrote: | | Where I live in mass most house are going for 250-300+ and it isn't a very rich area, but you have to think about non city areas. If you factor all the people living down south (think alabama) and in the Midwest maybe that Mortgage average is correct |
Its probably correct, but I dont doubt the average house price has gone quit a bit up in the last decade or so.
also, i'd be curious to see what the average would look like if you dropped the lowest and highest 5%.
I guess my point is this. For every one person living in a $200k house saying "thoes richies who have a $300k house can afford thoes taxes" there are 100 people living in a trailer or appartment saying "thoes richies living in a $200k house can afford to pay the taxes on it."
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kireol
RealPoor Master of Posts
Joined: 02 Aug 2003
Posts: 9517
Location: Royal Oak, MI
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Posted: 10/19/05 - 12:36 Post subject:
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| lotek wrote: | | motherface wrote: | | Cethan wrote: | | That "too rich that it doesn't matter" b******t really burns me up. The rich pay more taxes than you do. |
Did you type that with a straight face? The rich are the ones who create tax shelters and hire tax lawyers to find them loopholes so they have to pay less tax. Many insanely rich execs give themselves a salary of $1 so they don't have to pay income tax. Who's going to benefit the most from removing taxes on dividends? Same with the changes to insurance benefits.
And so what if the rich get taxed more than the rest of us? Any retard can see that if you make $30,000 and pay $5,000 in taxes it's more of a burden on you than if you make $30 million and pay $6 million in taxes.
As for 312k houses indicating that you're stretched too far, you can't even buy crap houses in NY for under 250k anymore. |
people buying 300k houses dont pay for lawyers looking for loopholes. $300k is completely middle class.
and kirol, you know me by know. Why the f**k are you assuming anything about my mortgage? Hell, I would think that between this thread, and the credit score thread you could at least deduce that I'm farily compentent when it comes to finances.
we should be encouraging people to buy houses, and put more money into houses. f**k load better than anything else people buy. We should not be penelizing people for being able to afford a nice home.
Otherwise, they should remove all the deductions. If you can afford a $150k house, you can afford the taxes on it. same arugment applies. |
you have me wrong. My point still is, most people are not affected by this. maybe 1-3%. 3% is not the middle class.
a small apartment in New York is like a million dollars. But you are ignornant and stupid if you think that the average person owns that apartment.
The AVERAGE person is unaffected.
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lotek
RealPoor Sensei
Joined: 12 Oct 2002
Posts: 1598
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Posted: 10/19/05 - 13:07 Post subject:
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fine then. im rich. Im in the top 2 percent. I started with nothing but a public education and a desire not be like everyone else.
I'm 32, rich, and tired of all you poor f***s trying to take my money becuase you think I wont miss it. I'll miss it more then you will. I earned it, every f*****g penny. You wont miss my money you will just waste my money on lottery tickets and whores.
My money serves you better if I have it. If I have it, I create jobs, if you have it, it goes up your nose, on on your wall as a big screen tv.
f**k trying to work with the system. I guess I understand now why the rich do what they do. Here comes off shore bank accounts, tax tricks, writeoffs, the works. you filthy poor who have squandered every opportunity life every gave you can suck a d**k. Pass any tax you want on me. I wont pay shit. I used to, but now, fuckit, gameon.
btw, my income tax return check was $25,000 It could have been more, but I put the reigns on my accountant. that f****r is set loose next year.
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atarom
Guest
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Posted: 10/19/05 - 14:22 Post subject:
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yo brother let me borrow 5grand rq i'll pay you back
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Luturb
RealPoor Guru
Joined: 11 Oct 2002
Posts: 4042
Location: Livermore, California
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Posted: 10/19/05 - 14:29 Post subject:
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Setting a number like that that applies to the whole country is stupid. Sure in the middle of the country $312k house means you're rich or overxtended. If you live on the coasts though, shit it's a 1-bedroom condo. That's not an exaggeration either. In my hometown, which is a commute town 50 miles from San Francisco, there is currently a 610 square foot, 1 bedroom 1 bath condo, in a completely non-exclusive neighborhood, selling for $330k, and it's not at all unusual.
If you want to live in this luxury dreamhouse, you can pick up a 1-bedroom condo for only $256k.
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kireol
RealPoor Master of Posts
Joined: 02 Aug 2003
Posts: 9517
Location: Royal Oak, MI
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Posted: 10/19/05 - 14:33 Post subject:
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| lotek wrote: | fine then. im rich. Im in the top 2 percent. I started with nothing but a public education and a desire not be like everyone else.
I'm 32, rich, and tired of all you poor f***s trying to take my money becuase you think I wont miss it. I'll miss it more then you will. I earned it, every f*****g penny. You wont miss my money you will just waste my money on lottery tickets and whores.
My money serves you better if I have it. If I have it, I create jobs, if you have it, it goes up your nose, on on your wall as a big screen tv.
f**k trying to work with the system. I guess I understand now why the rich do what they do. Here comes off shore bank accounts, tax tricks, writeoffs, the works. you filthy poor who have squandered every opportunity life every gave you can suck a d**k. Pass any tax you want on me. I wont pay shit. I used to, but now, fuckit, gameon.
btw, my income tax return check was $25,000 It could have been more, but I put the reigns on my accountant. that f****r is set loose next year. |
You did the right thing by buying a house. and in a few years, you'll be able to reap the rewards if you wish. And I always tell everyone to buy as much house as they can afford. But having a huge payment doesnt make you rich. It's just a payment. a 312K mtg with PITI is roughly $2500/month. That's more than most people take home. and that's JUST the mortgage. My house should be paid off soon. And then I'll buy another. It's all in how ya look at it I guess. You are the exception for sure though.
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Plat4PoP
RealPoor Jedi
Joined: 12 Oct 2002
Posts: 14376
Location: USA
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Posted: 10/19/05 - 15:04 Post subject:
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really sucks for the housing market and all those guys that try to flip houses. Now they have to keep under 300k ish in houses or get nailed to the wall trying to make a buck
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kireol
RealPoor Master of Posts
Joined: 02 Aug 2003
Posts: 9517
Location: Royal Oak, MI
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Posted: 10/19/05 - 15:07 Post subject:
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| Plat4PoP wrote: | | really sucks for the housing market and all those guys that try to flip houses. Now they have to keep under 300k ish in houses or get nailed to the wall trying to make a buck |
the good news is that they're raising the amount before you get taxed on cap gains.
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Cethan
Can't Stop Posting
Joined: 18 Oct 2002
Posts: 505
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Posted: 10/19/05 - 15:26 Post subject:
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| lotek wrote: | fine then. im rich. Im in the top 2 percent. I started with nothing but a public education and a desire not be like everyone else.
I'm 32, rich, and tired of all you poor f***s trying to take my money becuase you think I wont miss it. I'll miss it more then you will. I earned it, every f*****g penny. You wont miss my money you will just waste my money on lottery tickets and whores.
My money serves you better if I have it. If I have it, I create jobs, if you have it, it goes up your nose, on on your wall as a big screen tv.
f**k trying to work with the system. I guess I understand now why the rich do what they do. Here comes off shore bank accounts, tax tricks, writeoffs, the works. you filthy poor who have squandered every opportunity life every gave you can suck a d**k. Pass any tax you want on me. I wont pay shit. I used to, but now, fuckit, gameon.
btw, my income tax return check was $25,000 It could have been more, but I put the reigns on my accountant. that f****r is set loose next year. |
f*****g Awesome. I love it.
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Cethan
Can't Stop Posting
Joined: 18 Oct 2002
Posts: 505
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Posted: 10/19/05 - 15:42 Post subject:
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| lotek wrote: |
Its probably correct, but I dont doubt the average house price has gone quit a bit up in the last decade or so.
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The last decade. Let me tell you about the last 3 years in my home.
2/02 - Sold for 164,000
5/04 - I bought for 179,500
5/05 - Appraised at 240,000
According to the other sales of homes in my neighborhood, I could list it for 260k tomorrow, and sell it by the end of the week.
Hampton Roads is f*****g crazy right now. I got lucky buying when I did.
3 bedrooms + FROG on a 1/4 acre lot. Around 2100sq ft.
I could buy a f*****g mansion in TN for that much.
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lotek
RealPoor Sensei
Joined: 12 Oct 2002
Posts: 1598
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Posted: 10/19/05 - 18:02 Post subject:
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| kireol wrote: | | lotek wrote: | fine then. im rich. Im in the top 2 percent. I started with nothing but a public education and a desire not be like everyone else.
I'm 32, rich, and tired of all you poor f***s trying to take my money becuase you think I wont miss it. I'll miss it more then you will. I earned it, every f*****g penny. You wont miss my money you will just waste my money on lottery tickets and whores.
My money serves you better if I have it. If I have it, I create jobs, if you have it, it goes up your nose, on on your wall as a big screen tv.
f**k trying to work with the system. I guess I understand now why the rich do what they do. Here comes off shore bank accounts, tax tricks, writeoffs, the works. you filthy poor who have squandered every opportunity life every gave you can suck a d**k. Pass any tax you want on me. I wont pay shit. I used to, but now, fuckit, gameon.
btw, my income tax return check was $25,000 It could have been more, but I put the reigns on my accountant. that f****r is set loose next year. |
You did the right thing by buying a house. and in a few years, you'll be able to reap the rewards if you wish. And I always tell everyone to buy as much house as they can afford. But having a huge payment doesnt make you rich. It's just a payment. a 312K mtg with PITI is roughly $2500/month. That's more than most people take home. and that's JUST the mortgage. My house should be paid off soon. And then I'll buy another. It's all in how ya look at it I guess. You are the exception for sure though. |
Its actually my second house. I bought my first 6 years go and make ~60k on it. which is partly the reason I can afford my new house.
I can have it paid off in 5 years if I want to, but at 5.25% fixed for 30, I dont really see a reason to. That money can make me more elsewhere.
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kireol
RealPoor Master of Posts
Joined: 02 Aug 2003
Posts: 9517
Location: Royal Oak, MI
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Posted: 10/19/05 - 20:39 Post subject:
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how much is your mtg for right now?
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sinrakin
RealPoor Master of Posts
Joined: 11 Oct 2002
Posts: 7044
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Posted: 10/19/05 - 21:12 Post subject:
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I'm trying to decide whether to pay off my mortgage or not. It's 15 years for about $220k at 5%. That 5% is still around 11k a year, which thanks to AMT is not fully deductible, and I'm not sure my investments these days are doing much better than that. Some are, some aren't. I'm half tempted to just pay it off, but if interest rates go up, in a few years a 5% mortgage could seem like a real asset. I could probably put more work into my investments and do better there, but I don't have a lot of time and the opportunities seem kind of limited these days anyway.
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kireol
RealPoor Master of Posts
Joined: 02 Aug 2003
Posts: 9517
Location: Royal Oak, MI
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Posted: 10/19/05 - 21:45 Post subject:
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| sinrakin wrote: | | I'm trying to decide whether to pay off my mortgage or not. It's 15 years for about $220k at 5%. That 5% is still around 11k a year, which thanks to AMT is not fully deductible, and I'm not sure my investments these days are doing much better than that. Some are, some aren't. I'm half tempted to just pay it off, but if interest rates go up, in a few years a 5% mortgage could seem like a real asset. I could probably put more work into my investments and do better there, but I don't have a lot of time and the opportunities seem kind of limited these days anyway. |
if you have extra money,there's 1 thing you should do if can. the very first thing and almost any and every financial planner will tell you to do this.
401K. max it out.
My sucky ass choices only gained me 9.5% last year. Some people in my office saw 20%.
401K is pre tax and is just about the only thing to guarantee retirement money these days.
if it's capped already from you putting all in, then go for a term life investment, which is just like a 401K but it's tax preferred, instead of deferred.
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Kurel
RealPoor Sensei
Joined: 11 Oct 2002
Posts: 1877
Location: Cali
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Posted: 10/20/05 - 02:38 Post subject:
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This is going to rape California if it goes through.
My house was just appraised for $650k, and it's considered middle class. :/
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