The COVID19 SCAMdemic... Economy So Strong That eBay Hard Up For Business

[jimlloyd40]

The standard deduction was increased quite a bit. You can still claim mortgage interest(up to 750k debt), but if your itemized deductions are less than the standard.. then you take the standard amount.

It's always been that way.

 

[DarkArrow]

Not sure how? Read the link and you'll see why it cost you more to have the mortgage interest rate deduction than not being able to deduct it.

Dave Ramsey is for morons. How he dumbs down concepts like what you posted clearly shows this. You don't focus on average interest on an amortized loan.

I'm curious if you know this answer. If you were able to borrow $10,000 at 4% over 5 years and could put it into a 5 year CD at 4% interest compounding at the same rate, would you be net positive, net negative, or equal? His answer caters to people who refuse to understand the basic concept to this question.

 

[brat_burner]

It's always been that way.

Do you file your own taxes?

 

[jimlloyd40]

Dave Ramsey is for morons. How he dumbs down concepts like what you posted clearly shows this. You don't focus on average interest on an amortized loan.

I'm curious if you know this answer. If you were able to borrow $10,000 at 4% over 5 years and could put it into a 5 year CD at 4% interest compounding at the same rate, would you be net positive, net negative, or equal? His answer caters to people who refuse to understand the basic concept to this question.

It's simple.
Debt is bad period.

 

[DarkArrow]

It's simple.
Debt is bad period.

Thanks for proving my point.

 

[Corprin]

Disagree.

https://www.irs.gov/newsroom/deferr...eposits-and-payments-through-december-31-2020

 

[jimlloyd40]

Do you file your own taxes?

I get them done by a CPA since I have a business. If I was employed by a company I would do my own taxes.

 

[jimlloyd40]

Thanks for proving my point.

Thanks for agreeing with me.

 

[DarkArrow]

Thanks for agreeing with me.

So, you're saying I should forego my 2.75% interest savings account to pay off my car loan at 1.87% because all debt is bad.... Right....
Like I said, you're the exact demographic that Dave Ramsey caters to, and you confirmed that with your foolish response to avoid my question.

 

[brat_burner]

So, you're saying I should forego my 2.75% interest savings account to pay off my car loan at 1.87% because all debt is bad.... Right....
Like I said, you're the exact demographic that Dave Ramsey caters to, and you confirmed that with your foolish response to avoid my question.

Are you actually getting 2.75? Where... lol

 

[jimlloyd40]

https://www.irs.gov/newsroom/deferr...eposits-and-payments-through-december-31-2020

So? You still can't dictate what your taxes are used for.

 

[DarkArrow]

Are you actually getting 2.75? Where... lol

Special teacher's rate at a credit union. There's limits on how much you can contribute though, so it's nothing too crazy. Used to be 4% last year....

 

[jimlloyd40]

So, you're saying I should forego my 2.75% interest savings account to pay off my car loan at 1.87% because all debt is bad.... Right....
Like I said, you're the exact demographic that Dave Ramsey caters to, and you confirmed that with your foolish response to avoid my question.

Yes. Because if you didn't have that debt you could invest it. You don't get rich playing an interest rate game. Dave Ramsey appeals to all demographics.
Just people that don't want to play the game of debt.
And yes your investments could lose money but historically if you invest in safe mutual funds you'll come out dramatically ahead. If you invest in individual stocks you'll lose your ass unless you get lucky.

 

[brat_burner]

Special teacher's rate at a credit union. There's limits on how much you can contribute though, so it's nothing too crazy. Used to be 4% last year....

Cool, mine has gone down quite a bit. May have to look elsewhere.

 

[DarkArrow]

Yes. Because if you didn't have that debt you could invest it. You don't get rich playing an interest rate game. Dave Ramsey appeals to all demographics.
Just people that don't want to play the game of debt.
And yes your investments could lose money but historically if you invest in safe mutual funds you'll come out dramatically ahead. If you invest in individual stocks you'll lose your ass unless you get lucky.

Where is this magical money coming from that you can pay off debt AND invest? If you're using money to pay off debt, that's money you can't invest. Do you even understand what you're saying, or are you just regurgitating what you think you remember hearing from Dave Ramsey?

Contrary to what Dave Ramsey says, there is such a thing as good debt. If your mortgage has an interest rate at ~3% if you refi recently, the average long term return (10+ year minimum timeframe) of the S&P500 is ~9% annualized. Since a mortgage is a long term loan, we're going to use long term amounts. Because the 3% is amortized and the 9% is compounding, you'll get SIGNIFICANTLY more return by NOT paying off the debt other than what the minimum is. However, if you can't understand the benefit of compounding over amortization (as you showed by avoiding my question), then this is going to be way over your head.

Oh yeah, and you get to write off that mortgage interest, making it even BETTER to not pay extra to your mortgage. But follow Dave Ramsey, it's not my money that's being lost.