Paid My Car Off Early!

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Are you planning on buying a house in NY or are you planning on moving away? I left NY because the taxes were so bad. $6K+/year for a house worth ~$140K in Madison County.

If you are planning on buying in NY, watch out when you are looking at real estate websites or when talking to realtors. They split "Property Taxes" and "School Taxes". In most counties, the "School Tax" bill is 2-6X the "Property Tax" bill. Most real estate websites will only list the "Property Tax" bill and not the "School Tax" bill.
 
Originally Posted By: Donald
I have no car payments only expensive ex-wife payments.
She was a "good housekeeper". She kept the house.
smile.gif
Congrats on not renting the car from the bank any longer.
 
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Warning, it's un-American to live debt free especially if your car is paid for. Student loans were setup to teach you how to live in debt from the very start of your career. When there is credit and money to loan the price of an education or a car or a home can be kept high enough to keep the economy churning. You must immediately go out and buy a fancy new car with lots of features and gadgets even if it's a small compact car. Being in debt is how the money lenders make a living and that finances politicians and that makes the world go around. You must do your part to support the system. Now that you're driving a "paid-for" car I hope you can survive the embarrassment of driving a car that is so "last-year" in the neighborhood where you have to live and raise a family. This stunt you pulled by paying off your car is exactly the kind of thing that gives politicians nightmares and worries them that someday someone will ask them to live on a budget. That would be the end of their world and people like you (and me) would be the cause.
 
Thanks all
laugh.gif
I know I finally made a good choice for once.


Originally Posted By: IveBeenRued
Are you planning on buying a house in NY or are you planning on moving away? I left NY because the taxes were so bad. $6K+/year for a house worth ~$140K in Madison County.

If you are planning on buying in NY, watch out when you are looking at real estate websites or when talking to realtors. They split "Property Taxes" and "School Taxes". In most counties, the "School Tax" bill is 2-6X the "Property Tax" bill. Most real estate websites will only list the "Property Tax" bill and not the "School Tax" bill.


I'm planning on staying here, yes. I'm guessing you lived in Cazenovia or Hamilton? Those seem to be the only prosperous places in Madison Co where there are properties that would be worth that much and taxed that much. Oneida/Whompsville ... not so prosperous and definitely no $140K properties (or jobs that would support a $140K house).

I am probably going to be looking right in the city of Syracuse - but in a better neighborhood than I am in right now - for a duplex or something in one of the low-rent suburbs of Syracuse. There are some houses in Cicero with taxes that are $20K a year - and they aren't much more than $140K in value.

The $50-$60K duplexes I'm looking at, in the City of Syracuse would only have ~$1500-$2000 a year in taxes. The city schools aren't that great so taxes are low.


Originally Posted By: CT8
So un American to not be up to your ears in debt. Congratulations.


Still have a lot of student loan debt, unfortunately. Will have a mortgage before too long.
 
Originally Posted By: Miller88
...I'm guessing you lived in Cazenovia or Hamilton? Those seem to be the only prosperous places in Madison Co where there are properties that would be worth that much and taxed that much. Oneida/Whompsville ... not so prosperous and definitely no $140K properties (or jobs that would support a $140K house).



It was in Oneida. There are no jobs, industry, or reasons to live there but there are plenty of homes valued 140K+.
 
Originally Posted By: Miller88


Still have a lot of student loan debt, unfortunately. Will have a mortgage before too long.


I feel ya there. Currently a senior at BGSU. My last calculation was $638 a month for 10 years to pay them off in the 10 year time limit. Hopefully I can get them transferred over to a longer term through a consolidation.
 
Uh, hate to be LOGICAL but
with low interest auto loans (2-5%) it would be better to have that cash in your IRA earning 15-30% in mutual funds. If you borrowed 10k in 2008 and invested in an average manner, you would have over 30G's now.
 
Excellent job! The best thing about any car is that it's paid for.

I like the gratification of having loans paid off, so I'd suggest paying off the student loans before taking on new debt. That's just me though.

Cheers.
 
Originally Posted By: WobblyElvis
Stay away from debt and don't buy a new car. It's a trap. Live beneath your means. The only thing to borrow for is real estate.
The wife and I had a house paid for by age 31 using this formula. Been on easy street ever since. It can be done.


100% agree. Very smart plan. And always act like you have a big new car payment and instead put that money in a tax advantaged retirement account. Very simple rule to live by - rich people always earn interest while poor people always pay interest.
 
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As long as you carry that debt, you are guaranteed to be paying the 2-5% interest. There is no guarantee of making 15-30% in any mutual fund, or any other investment for that matter. What about a downturn when you lose 10%...or 15-30% ? I understand your reasoning, but I don't agree with it. The less debt, the better...regardless of the interest rate.
 
Congratulations !! Excellent!!

A few more months and our 2013 GC will be paid off. Should be now, but the furnace failure last Feb. was a priority..
 
Originally Posted By: ARCOgraphite
Uh, hate to be LOGICAL but
with low interest auto loans (2-5%) it would be better to have that cash in your IRA earning 15-30% in mutual funds. If you borrowed 10k in 2008 and invested in an average manner, you would have over 30G's now.


Please please please tell me which funds are earning 15% to 30% over a five year period.

I need specifics, like an *exact* fund.
 
Originally Posted By: Mykl
Originally Posted By: ARCOgraphite
Uh, hate to be LOGICAL but
with low interest auto loans (2-5%) it would be better to have that cash in your IRA earning 15-30% in mutual funds. If you borrowed 10k in 2008 and invested in an average manner, you would have over 30G's now.


Please please please tell me which funds are earning 15% to 30% over a five year period.

I need specifics, like an *exact* fund.
The local bookie could send you to "a guy".
 
Originally Posted By: Mykl
Originally Posted By: ARCOgraphite
Uh, hate to be LOGICAL but
with low interest auto loans (2-5%) it would be better to have that cash in your IRA earning 15-30% in mutual funds. If you borrowed 10k in 2008 and invested in an average manner, you would have over 30G's now.


Please please please tell me which funds are earning 15% to 30% over a five year period.

I need specifics, like an *exact* fund.

The Bandito Fund is performing very well. Send me a sack full of cash and I'll see that it's properly invested.
 
Originally Posted By: ARCOgraphite
Uh, hate to be LOGICAL but
with low interest auto loans (2-5%) it would be better to have that cash in your IRA earning 15-30% in mutual funds. If you borrowed 10k in 2008 and invested in an average manner, you would have over 30G's now.


If you borrowed in 2008...woulda-shoulda-coulda....pigs can certainly fly with sufficient thrust but you don't see pigs go flying by very often. With the benefit of hindsight we are all brilliant financiers and investors.
 
Many people claim they can earn returns of %10 or more. If this were true, one would only have to borrow money at todays prime interest rates and use that money to acquire the %10 or more interest they claim they can produce. Then borrow more and more and invest and invest and so on. This person would eventually own the world. They certainly wouldn't have to work for a living as in investment advisor.
 
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