What's new
By:
USCHO Fan Forum

This is a sample guest message. Register a free account today to become a member! Once signed in, you'll be able to participate on this site by adding your own topics and posts, as well as connect with other members through your own private inbox!

  • The USCHO Fan Forum has migrated to a new plaform, xenForo. Most of the function of the forum should work in familiar ways. Please note that you can switch between light and dark modes by clicking on the gear icon in the upper right of the main menu bar. We are hoping that this new platform will prove to be faster and more reliable. Please feel free to explore its features.

Business, Economics, and Taxes: Capitalism. Yay? >=(

Status
Not open for further replies.
Kepler said:
I have no idea how single income families survive. I get that they save on child care but... that's it.
Click to expand...


Typically it's when the discrepancy in incomes is very large. Happened with my doctor brother/teacher SIL.

Basically what's difference between the smaller salary vs the cost of two kids in daycare? That's a much easier calculation when you make doctor money.

childcare is insanely expensive. Like private school expensive.
 
dxmnkd316 said:
That's not how math works. If you can get guaranteed returns higher than your mortgage rate, the difference between the two compounds over the life of the loan. Which is to say, you're literally exponentially wrong.

if anything those prepayments could be cost you MORE in taxes depending on your situation and SALT caps. Mortgage interest is usually deductible.

if I can buy something today for $5 and sell it for $10 tomorrow, it doesn't make sense to pay off an existing loan for $5 today if it only cost $7.5 tomorrow. I'd buy the widget, sell it for $10, pay off the loan, and profit $2.50.
Click to expand...

Wrong. If you pay off $10k you save $250 in interest the first year, $257 of interest the second year, etc until the loan is paid off.

In your scenario depending on the type of account you have you could potentially pay tax on the $5 gain. Also, if your interest rate is 2.5% you would need a mortgage of at least $600k before deducting would make much sense(unless you give a lot to charity or something like that.)
 
Kepler said:
Sell the kids for food.
Click to expand...
Dinkwad here, so no kids to sell. Trying to figure out how to get the two freeloader pups an OnlyPaws account started though...

dxmnkd316 said:
My only regret is not buying an exorbitant house and mortgaging it for 30 years while living house poor for a bit while I watch my mortgage make me money.
Click to expand...
Same. I have very few regrets in life, but that one nags at me.

I have been consoled by some saying that even with rates as high as they are, we could get a very nice down payment on a bigger house from selling our current one.
 
Handyman said:
Also it is being reported the vast majority of his followers are basically bots. Inactive accounts with almost no followers.
Click to expand...

Isn't that true of the entire app, now. All the accounts are fake?

I have this feeling that someday an analysis will show that even at their best 90% of all social media accounts and posts were computer generated, and the only reason any site ever survived was FOMO.

It was all always a fraud.

I mean... it would explain all you guys...
 
We budgeted our house such that if one of us lost all income, the other could support the house indefinitely.


I get the math of investing vs paying it off. I don't care. I want to be debt free.
 
dxmnkd316 said:
Typically it's when the discrepancy in incomes is very large. Happened with my doctor brother/teacher SIL.

Basically what's difference between the smaller salary vs the cost of two kids in daycare? That's a much easier calculation when you make doctor money.

childcare is insanely expensive. Like private school expensive.
Click to expand...
$355/week for my daughter until ten days from now. That price is about to drop in half because the local pedophilia ranch…er… “Catholic Church” is starting a pre-K program and they’re vastly underpriced. Likely the little boy rape.
 
St. Clown said:
$355/week for my daughter until then days from now. That price is about to drop in half because the local pedophilia ranch…er… “Catholic Church” is starting a pre-K program and they’re vastly underpriced. Likely the little boy rape.
Click to expand...

She'll be safe, she's a girl.
 
Drew S. said:
Wrong. If you pay off $10k you save $250 in interest the first year, $257 of interest the second year, etc until the loan is paid off.

In your scenario depending on the type of account you have you could potentially pay tax on the $5 gain. Also, if your interest rate is 2.5% you would need a mortgage of at least $600k before deducting would make much sense(unless you give a lot to charity or something like that.)
Click to expand...

No, I'm absolutely correct.

You should continue to work this out on paper until you realize why you're wrong.
 
This thread is a lovely reminder that as a single income of under $70K, there is absolutely no way I'm ever gonna be able to own a home in my area.

Was looking for Gits & Shiggles the other day actually. There is absolutely nothing (outside of manufactured homes) within 30 miles of my location under $200k. As it stands, with under 10% available for a down payment, even some of the stuff in the upper $200s would mean a mortgage in the neighborhood of $2,000-2,700/month.... Simply not doable.
 
RaceBoarder said:
This thread is a lovely reminder that as a single income of under $70K, there is absolutely no way I'm ever gonna be able to own a home in my area.

Was looking for Gits & Shiggles the other day actually. There is absolutely nothing (outside of manufactured homes) within 30 miles of my location under $200k. As it stands, with under 10% available for a down payment, even some of the stuff in the upper $200s would mean a mortgage in the neighborhood of $2,000-2,700/month.... Simply not doable.
Click to expand...

Holy fuck. Is that including taxes and insurance....?
 
https://usehhaf.org/loan-information/loan-calculators/mortgage-investment-analysis-calculator/.

For 300k principal, 1k monthly mortgage, 500 extra, 30 years, 2.5% loan, 5% investment rate. It should be mentioned this ends the comparison after 21.5 years, when the mortgage is paid off with prepayments. It should continue through the full 30 years to be a fair comparison, since the prepaid version would have more to invest at that point (as they no longer have to make the monthly payment).

So regular has 230k in investments, and will put in around 50k into the investment over the remaining 8.5 years; prepaid has 0k in investments, and will put in around 150k over the remaining 8.5 years. The extra 100k to invest over that time will be hard-pressed to make up for being 230k behind. So investing wins. Note of course this does not take taxes into account at all.
 
French Rage said:
https://usehhaf.org/loan-information/loan-calculators/mortgage-investment-analysis-calculator/.

For 300k principal, 1k monthly mortgage, 500 extra, 30 years, 2.5% loan, 5% investment rate. It should be mentioned this ends the comparison after 21.5 years, when the mortgage is paid off with prepayments. It should continue through the full 30 years to be a fair comparison, since the prepaid version would have more to invest at that point (as they no longer have to make the monthly payment).

So regular has 230k in investments, and will put in around 50k into the investment over the remaining 8.5 years; prepaid has 0k in investments, and will put in around 150k over the remaining 8.5 years. The extra 100k to invest over that time will be hard-pressed to make up for being 230k behind. So investing wins. Note of course this does not take taxes into account at all.
Click to expand...

LTCG is still 15% plus state right? Or did the Dems fix that?
interest deductions come off at the top marginal rate assuming you qualify. That's at least 20% plus state. so there's a chance you could make up some of that on taxes.

Unless you're banking on dying without selling the investments. Step up in basis basically wipes out the taxes on the gains assuming you stay under the inheritance tax.
 
RaceBoarder said:
This thread is a lovely reminder that as a single income of under $70K, there is absolutely no way I'm ever gonna be able to own a home in my area.

Was looking for Gits & Shiggles the other day actually. There is absolutely nothing (outside of manufactured homes) within 30 miles of my location under $200k. As it stands, with under 10% available for a down payment, even some of the stuff in the upper $200s would mean a mortgage in the neighborhood of $2,000-2,700/month.... Simply not doable.
Click to expand...

I am a single income just under $70k. I got lucky and admittedly had some privilege. My mom, who was very good with money, gifted me $20k to put towards a down payment. I found a very nice home at 2600 sq ft for $170k. And with my credit (>800) I was able to get the home in late 2016 at 3.3% interest. Home is now valued at around $350-400k. Currently the cheapest actual home (non mobile/manufactured) in my current town is $215k for 946 sq ft.
 
Side note: I was thinking about getting back into our employee stock program and did some math. In order for even a 15% discount to be worth it over 25 years of compounding growth, your stock would need to match the s&p500's total return at like a 95%+ clip. These programs should be abolished.
 
Status
Not open for further replies.
Back
Top