Just paid off our mortgage

[CastlevaniaNut18]

I'm super happy right now. Husband surprised me the other day with the payoff note. He'd talked about cashing in a bit of his bitcoin and just paying it all off this year, but I didn't realize he was doing it so soon and I haven't paid much attention to the crypto situation.

 

We bought our house in Oct 2014 for $250k. We've paid heavily this whole time because he liked the idea of not having a mortgage payment hanging over out heads. Still will be putting $200 aside every month to pay for the insurance and taxes, but I'll still have an additional $1100 each month. Right now, I'm going to splurge on some PC upgrades in March and increase my 401k contribution. Then I'm going to figure out some more investing stuff.

 

I'm 35 years old and completely debt free. Feels real good.

[best3444]

Congratulations 👏 

 

What a financial relief! 

[SuperSpreader]

Congratulations!! 

[Guest]

13 minutes ago, CastlevaniaNut18 said:

Then I'm going to figure out some more investing stuff.

Just max out an IRA for both you and the husband, with the funds going into an S&P 500 tracking ETF.

 

After that, stick cash into the highest yielding savings account you can find until you save up enough to pay cash for an investment property that you can rent out.

 

Between your 401ks, IRAs, and eventual rental property portfolio, you will want for nothing during your retirement days.

[CastlevaniaNut18]

Just now, sblfilms said:

Just max out an IRA for both you and the husband, with the funds going into an S&P 500 tracking ETF.

 

After that, stick cash into the highest yielding savings account you can find until you save up enough to pay cash for an investment property that you can rent out.

 

Between your 401ks, IRAs, and eventual rental property portfolio, you will want for nothing during your retirement days.

I don't know that I want the headache of rentals, though. But it's certainly something we can discuss.

 

Found out we didn't quite hit the income threshold for our Roth IRAs, so I'm gonna try to put as much as I can in mine by April.

[Guest]

Just now, CastlevaniaNut18 said:

I don't know that I want the headache of rentals, though. But it's certainly something we can discuss.

 

Found out we didn't quite hit the income threshold for our Roth IRAs, so I'm gonna try to put as much as I can in mine by April.

If you pay cash, you can use some of the revenue to hand it off to a management company and you’ll still come out profitable as well as continuing to gain equity over time, which is the main reason owning the real estate is a good long term investment.

[Ominous]

If your rate was under 3 percent I'd question paying it off when that money could have made more money while invested than you'd save in interest. If it wasn't under 3 percent why didn't you refi down into the 2s or 1s back in 2020 or 21? Food for thought.

 

That roth IRA income limit caught me off guard in 2020, don't get burned by that if you have to take capital gains on your Bitcoin.

[CastlevaniaNut18]

8 minutes ago, Ominous said:

If your rate was under 3 percent I'd question paying it off when that money could have made more money while invested than you'd save in interest. If it wasn't under 3 percent why didn't you refi down into the 2s or 1s back in 2020 or 21? Food for thought.

 

That roth IRA income limit caught me off guard in 2020, don't get burned by that if you have to take capital gains on your Bitcoin.

He wanted the security of being out of debt. It was considered, but we'd already paid off so much by that point. Our rate was 4%.

 

He's already gone through the roth IRA stuff and said we're good, bitcoin stuff included.

 

He's basically made finance a hobby in recent years. He reads about it like I read about history.

[stepee]

fuck yaaaaa

[Remarkableriots]

Congratulations!!!!

[Mr.Vic20]

I had dreams like this, but then I wnet and had kids so it will never be! 

[gamer.tv]

We’ll move before we get close to paying off our mortgage, so maybe it’ll be my life when I’m about…70? 

[Slug]

Yay!  Welcome to the no mortgage club! I got there in January.  Feels good. Congratulations!

[SuperSpreader]

10 hours ago, CastlevaniaNut18 said:

He wanted the security of being out of debt. It was considered, but we'd already paid off so much by that point. Our rate was 4%.

 

He's already gone through the roth IRA stuff and said we're good, bitcoin stuff included.

 

He's basically made finance a hobby in recent years. He reads about it like I read about history.

 

Yeah I was told the same thing with my place so I pocketed my money in investments and am paying a mortgage. I guess on paper it makes sense but now I'm still in a position where I have monthly expenses and can't just tell everyone to go fuck themselves without consequences.

[Bloodporne]

11 hours ago, sblfilms said:

Just max out an IRA for both you and the husband, with the funds going into an S&P 500 tracking ETF.

 

After that, stick cash into the highest yielding savings account you can find until you save up enough to pay cash for an investment property that you can rent out.

 

Between your 401ks, IRAs, and eventual rental property portfolio, you will want for nothing during your retirement days.

Okay maybe this sounds dumb coming from an adult but...how do you figure something like this out? I live in the city so I've always only rented and I simply shove all my savings into my regular Chase savings account. I have nothing "special" going on. I still have this obnoxiously miserly poor person mentality going on because I was raised that way and never had money until getting somewhere in my mid-30s yet don't really do anything with it. 

 

Asking the adults in the room, should I see a financial adviser or something? 

[AbsolutSurgen]

1 minute ago, Bloodporne said:

Okay maybe this sounds dumb coming from an adult but...how do you figure something like this out? I live in the city so I've always only rented and I simply shove all my savings into my regular Chase savings account. I have nothing "special" going on. I still have this obnoxiously miserly poor person mentality going on because I was raised that way and never had money until getting somewhere in my mid-30s yet don't really do anything with it. 

 

Asking the adults in the room, should I see a financial adviser or something? 

Yes.  You need a plan for retirement.

[Brian]

42 minutes ago, Bloodporne said:

Okay maybe this sounds dumb coming from an adult but...how do you figure something like this out? I live in the city so I've always only rented and I simply shove all my savings into my regular Chase savings account. I have nothing "special" going on. I still have this obnoxiously miserly poor person mentality going on because I was raised that way and never had money until getting somewhere in my mid-30s yet don't really do anything with it. 

 

Asking the adults in the room, should I see a financial adviser or something? 

If your company provides a 401k plan, typically there is a free session to meet with an advisor to talk about retirement. If not, Chase provides a similar service. I get emails all the time about managing my investments. You definitely should talk to someone and get an idea where you are, what you potentially will need, and how you can accomplish it. It’s not a fun conversation by any means but a necessary one for a good retirement. 

[Bloodporne]

3 minutes ago, Brian said:

If your company provides a 401k plan, typically there is a free session to meet with an advisor to talk about retirement. If not, Chase provides a similar service. I get emails all the time about managing my investments. You definitely should talk to someone and get an idea where you are, what you potentially will need, and how you can accomplish it. It’s not a fun conversation by any means but a necessary one for a good retirement. 

Sounds like I need to just get my ass into my bank and just start asking questions. I absolutely have a 401k plan and all that, but it's just kind of been "there" and I don't really know what I'm supposed to be doing with all that information. Thanks for the advice. 

[TUFKAK]

Just now, Bloodporne said:

Sounds like I need to just get my ass into my bank and just start asking questions. I absolutely have a 401k plan and all that, but it's just kind of been "there" and I don't really know what I'm supposed to be doing with all that information. Thanks for the advice. 

To make it brief 

 

first priority is high interest debt (credit cards)

if you get an employer match max that asap

Roth IRA if you can contribute

other pre tax 401k, 403b etc

 

from here I’m sure others will disagree with me but I do a post tax brokerage others will absolutely disagree with my priority of this.

 

But those first few are priorities in that order imo.

[Guest]

@Bloodpornehow old are you? Pretty much the only thing you’ll need to figure out is the balance between risky assets and safe assets in your portfolio based on how close to retirement you are.

 

If you think about the ~40ish years of active employment most people will have, in the first half of that you should be pretty exclusively in growth oriented equities, while the second half you should slowly move into a majority of stable assets like treasury bonds.

 

When you have a lot of time before retirement, it’s about growing the account. When you have little time before retirement, it becomes about protecting what is in the account so you actually have it when you need it.

[Bloodporne]

2 minutes ago, sblfilms said:

@Bloodpornehow old are you? Pretty much the only thing you’ll need to figure out is the balance between risky assets and safe assets in your portfolio based on how close to retirement you are.

 

If you think about the ~40ish years of active employment most people will have, in the first half of that you should be pretty exclusively in growth oriented equities, while the second half you should slowly move into a majority of stable assets like treasury bonds.

 

When you have a lot of time before retirement, it’s about growing the account. When you have little time before retirement, it becomes about protecting what is in the account so you actually have it when you need it.

I'm 39. No credit card debt, no car payment, no other debts. I just have my monthly rent & bills and a fairly healthy savings account right now. 

 

Also @CastlevaniaNut18 I apologize if I hijacked your thread! I didn't mean to, just saw some of the posts/replies here and felt sudden panic because it's all Greek to me and it shouldn't be. 

[Brian]

6 minutes ago, Bloodporne said:

Sounds like I need to just get my ass into my bank and just start asking questions. I absolutely have a 401k plan and all that, but it's just kind of been "there" and I don't really know what I'm supposed to be doing with all that information. Thanks for the advice. 

The sooner someone reviews where you currently stand and helps you figure out what are the best vehicles for your retirement, the better.  There are a lot of options.
 

Once you find an advisor, make it at least a yearly conversation. Thresholds and laws change all the time. It is important to keep up to date on it all especially as you approach the second half of your career. 

[AbsolutSurgen]

The tax advantages of owning vs. renting in the US are quite large.  That's another area to look into.

[SmugPrick]

Congrats! Monumental achievement! Personally speaking, I need the write off though. The difference between paying in 17,000 (after claiming 0, mind you) and only 7,000. My 2020 Raptor is paid off though and only debt being the mortgage. My treat to myself after I paid off the truck was a Benelli M4 H20 Tactical with an eotech red dot and other goodies attached. 

[Ominous]

5 minutes ago, SmugPrick said:

My treat to myself after I paid off the truck was a Benelli M4 H20 Tactical with an eotech red dot and other goodies attached. 

Is that some type of chocolate candy or a sex doll?

[SmugPrick]

Just now, Ominous said:

Is that some type of chocolate candy or a sex doll?

It about made some chocolate candy in my pants the first time I took it to the range. Wanted a home defense weapon that wasnt my fits+determination.

 

[Commissar SFLUFAN]

14 minutes ago, Ominous said:

Is that some type of chocolate candy or a sex doll?

 

It's a tactical shotgun.

[SmugPrick]

4 minutes ago, Commissar SFLUFAN said:

 

It's a tactical shotgun.

that was also featured in John Wick

[Ominous]

Red dot and attachments made me think Hindu sex doll.  Hell of a reach around.

[CastlevaniaNut18]

1 hour ago, SmugPrick said:

Congrats! Monumental achievement! Personally speaking, I need the write off though. The difference between paying in 17,000 (after claiming 0, mind you) and only 7,000. My 2020 Raptor is paid off though and only debt being the mortgage. My treat to myself after I paid off the truck was a Benelli M4 H20 Tactical with an eotech red dot and other goodies attached. 

I'm still happy with my 2017 Colorado. I figure I'll drive it for a few more years, unless it starts having a lot of issues.

 

I bought a Savage 220 slug gun for deer hunting in November, I'm happy with that. I'd like to have a 20 gauge for bird and squirrel at some point.

[TUFKAK]

28 minutes ago, CastlevaniaNut18 said:

I'm still happy with my 2017 Colorado. I figure I'll drive it for a few more years, unless it starts having a lot of issues.

 

I bought a Savage 220 slug gun for deer hunting in November, I'm happy with that. I'd like to have a 20 gauge for bird and squirrel at some point.

How are we friends!? Lol

[CastlevaniaNut18]

17 minutes ago, TUFKAK said:

How are we friends!? Lol

Hey, I just hunt, I'm not a gun nut. That's probably why. Plus all my other liberal tendencies, video games, nursing, and now hockey!

[Keyser_Soze]

I'm paying off a mortgage but it's in my dad's name. The bank made it so much of a hassle to transfer it into my name I just pay it off myself. Is this going to come back and bite me in the ass?

[Guest]

13 hours ago, Keyser_Soze said:

I'm paying off a mortgage but it's in my dad's name. The bank made it so much of a hassle to transfer it into my name I just pay it off myself. Is this going to come back and bite me in the ass?

Can you explain the situation that has ended up with you paying this instead of taking out a loan in your own name? Because this generally feels like a bad idea.

[AbsolutSurgen]

13 hours ago, Keyser_Soze said:

I'm paying off a mortgage but it's in my dad's name. The bank made it so much of a hassle to transfer it into my name I just pay it off myself. Is this going to come back and bite me in the ass?

He gets to take the interest as a tax credit instead of you.