Yes, that old question ... but did a search, and couldn't find any topic subjects directly on point.
I'm not going to be retiring early, unless my late 50's qualifies, and my luck holds out (age 52 now).
But we've been reasonably fortunate, with over $2K per month net rental income on paid off rental properties, a relatively low house payment ($1,550/mo.) and good paying job with potential equity in the company (as stable as any job can be, these days).
Cash flow is strong enough that we can save $50K/year, and still amortize our home loan off in 5 years. Cars are paid off, no other debt.
Just contacted Wells Fargo this evening to bump our principal payments. Wife thinks I'm a little batty, as we angled for a low house payment ... explained to her that is a hedge if we hit hard times, and we can always back the house payment down if cash flow becomes an issue.
What are your perspectives on paying off the house, or car for that matter? The strictly financial side of me says to keep that 5.625% mortgage as high as possible, keep that 4% auto loan from the credit union, and dollar cost average the foregone additional principal payments into a stock index fund, or
I tend to hedge ... can't know what the market will do, where interest rates will be, what the real estate market will do, so ... spread the resources around a bit. If the home and car are paid off, and we still have $700K plus in liquid assets (pre and post tax) after 5 years, then we're well hedged for either retirement, or my next "adventure" in business.
[One other thing I should mention ... at this point in life, and after working da*n hard (like 70 hour weeks at times) as a "professional", those folks with pensions are looking very, very smart to me these days ... a real rarity in most companies, and have never participated in one in my entire career.]
Thanks.
Regards,
Craig
I'm not going to be retiring early, unless my late 50's qualifies, and my luck holds out (age 52 now).
But we've been reasonably fortunate, with over $2K per month net rental income on paid off rental properties, a relatively low house payment ($1,550/mo.) and good paying job with potential equity in the company (as stable as any job can be, these days).
Cash flow is strong enough that we can save $50K/year, and still amortize our home loan off in 5 years. Cars are paid off, no other debt.
Just contacted Wells Fargo this evening to bump our principal payments. Wife thinks I'm a little batty, as we angled for a low house payment ... explained to her that is a hedge if we hit hard times, and we can always back the house payment down if cash flow becomes an issue.
What are your perspectives on paying off the house, or car for that matter? The strictly financial side of me says to keep that 5.625% mortgage as high as possible, keep that 4% auto loan from the credit union, and dollar cost average the foregone additional principal payments into a stock index fund, or
I tend to hedge ... can't know what the market will do, where interest rates will be, what the real estate market will do, so ... spread the resources around a bit. If the home and car are paid off, and we still have $700K plus in liquid assets (pre and post tax) after 5 years, then we're well hedged for either retirement, or my next "adventure" in business.
[One other thing I should mention ... at this point in life, and after working da*n hard (like 70 hour weeks at times) as a "professional", those folks with pensions are looking very, very smart to me these days ... a real rarity in most companies, and have never participated in one in my entire career.]
Thanks.
Regards,
Craig