I'm sure that it's the last day of July 2012 in my part of this big spinning rock..

Cleo · 2012-07-31, 09:29 AM

Glims made me grim as of last night. Before going on vacation I installed the enhanced version of it to try it out. Didn't really like what it did and had planned on removing it at some point but never expected it to stop Adobe GoLive from opening since it's a Safari plugin.

Got home last night, tried to open GoLive and couldn't. Spent hours uninstalling Adobe applications. Making new user accounts, deleting caches and doing all the usual trouble shooting stuff that I would do.

I was just about to give up and buy the Dreamweaver upgrade when I remembered about installing Glims.

Busy day of playing catchup in work planned for today.

Greenguy · 2012-07-31, 09:56 AM

Good Tuesday Everyone

I'm in a bit of a better mood after doing some creative financing yesterday. We also have a call into the financial guy.

Answer me this: Everyone tells me it's not advisable to take money out of your retirement plan to pay off your house. Something about writing off the interest on your taxes. But we're in a scenario where paying it off would really help as far as monthly expenses. Anyone have any info/thought on this?

Ramster · 2012-07-31, 12:43 PM

Good day, lunch time soon and I'm starving.

It's a weird scenario paying of your house from retirement money but in the end does your retirement money earn 4% a year? You're paying 4% a year on your mortgage interest I'd presume. And on average homes rise in value of course each year too.

bDok · 2012-07-31, 12:45 PM

Morning. Well one of the friends from Boston went home. The other will be here for another two weeks. She has her own place which is nice. However, she is over this morning to leech internet as the place she is staying doesn't have any.

Had a great dinner last night out before we dropped the one person off at the airport. After that it was just catching up on some Olympic watching. Men's gymnastics really shit the bed. Was sad to watch.

Alright. Just a lot more content moving around a ton of posts that I need to handle.

Cleo · 2012-07-31, 12:52 PM

Quote:

Originally Posted by Ramster

does your retirement money earn 4% a year? You're paying 4% a year on your mortgage interest I'd presume. And on average homes rise in value of course each year too.

Interest on home loans is a tax write off so you aren't actually paying that unless you aren't paying taxes in the first place.

I've been considering doing the same thing but only because in Florida I'm forced to have Windstorm insurance by my mortgage company and Windstorm insurance has become so expensive with such high deductibles that it's not really worth having anymore.

cd34 · 2012-07-31, 02:10 PM

Quote:

Originally Posted by Greenie

Answer me this: Everyone tells me it's not advisable to take money out of your retirement plan to pay off your house. Something about writing off the interest on your taxes. But we're in a scenario where paying it off would really help as far as monthly expenses. Anyone have any info/thought on this?

First, is there a penalty for taking the cash out of the retirement fund? Sometimes there is a 10% penalty that needs to be taken into account.

Mortgage interest in the USA is tax deductible - making it generally the cheapest money you'll ever borrow.

With that said, cutting out a substantial chunk of your expenses now can benefit you later in another way. If you haven't taken the one time home sale exemption on your taxes, paying it off now, and selling it years from now when you downsize would allow you to take the profit (capital gains) tax free. If you still owed a substantial amount on your mortgage when you sold, then, you wouldn't get as much benefit from the free capital gains exemption. To consider this, make sure you or your wife haven't claimed that exemption.

If you could pay off the mortgage and not leave your retirement situation in dire straits, then, you might take the hit in order to give yourself some breathing room. Just know the costs up front. It is likely to cost you more in the short run for peace of mind.

If I were in your shoes, and it wasn't likely to affect too much of my retirement, it might be worth it to take the hit now in return for the peace of mind and easier financial situation. Your financial guy will have a lot more insight into your personal situation.

With your income, as bad as it might sound, interest rates right now are fairly low and you might be able to refinance to a 30 year at 4% which would give you a much longer payout, but, could cut your payments significantly without touching your retirement. Since you have the money in the retirement fund, you could use that as collateral with the house which might get you past some of the income verification if your income has fallen considerably and wouldn't qualify you for the best rate on a refinance.

With that, Happy Tuesday everyone.

RedCherry · 2012-07-31, 03:49 PM

I'm with CD34, if you have it in an IRA account, the penalties for withdrawing it are substantial. If you just have it in a basic savings / trust/ something else, then not so bad. Best talking to your accountant about all that.

Greenie, we went to our mortgage company and applied for the Making Home Affordable program. We gave them all our income info, and our mortgage payments are going down almost $900 a month. As opposed to withdrawing out of your retirement, you might want to try that route first. It is free and although being self employed we had to turn in about an inch of paper to them, we were approved rather quickly.

We are in our trial period right now, and as long as we make Sept payment on time, we will be approved.

It is a permanent modification, so even if our income goes up in the future, our payments will only rise slightly. (they cap the interest at whatever the fed is at the time the final paperwork is signed, and we will rise up to that over a period of 8 years then it is fixed from them on). They also do things like extend the term, and as a last resort, forgive some of the principal.

My final docs won't print out until after sept. payment, but my loan officer says they normally start you at 2% interest which is fixed for 5 years.

NY Jester · 2012-07-31, 04:09 PM

Afternoon GGB its only Tuesday but it feels like the week is going fast...thankfully.

Hope everyone is doing well.

JustRobert · 2012-07-31, 04:28 PM

Good Day

Took half a day off the contract job so I can work at home and watch the olympics.

Greenie, I am also with cd34. Over the long haul your retirement account should do 6 to 8% on average. Of course lately its hard to see that and you never know when the economy will tank again taking your retirement account with it. Whereas if you just pay off the house its done and over with and should give you peace of mind no matter what the economy is doing, except for property taxes and insurance. I would love to be mortgage free but I just don't see it happening anytime soon.

Greenguy · 2012-07-31, 05:40 PM

I will say this: we are to the point that, if we don't do this, we would be forced to downsize/move and neither of us want to ever leave this house.

Cleo · 2012-07-31, 06:47 PM

Quote:

Originally Posted by Greenie

I will say this: we are to the point that, if we don't do this, we would be forced to downsize/move and neither of us want to ever leave this house.

Sometimes you just have to dig into your nest egg to get through today and hope for a better tomorrow. This is basically what I've been forced to do.

MeatPounder · 2012-07-31, 07:16 PM

You are pretty close to being old enough to consider a reverse mortgage

dunc · 2012-07-31, 07:43 PM

My house is my retirement fund

Bill · 2012-07-31, 08:09 PM

One of the best things I ever did was pay off my house and my debts in the good days. It's let me stay stable.

I dont have a lot of advice to give about taking retirement money and paying off the house - other than, gather advice, run the numbers, and make a decision.

Paying penalties to keep a house you love is a trade I might make - but financial guys might tell me I was dumb to do so.

Downsizing, and letting go of something that ties you to the world in a certain way, might equally well be the right decision.

That's a heavy choice to make.

Almost a spiritual choice. Path of life kind of thing.

JustRobert · 2012-08-01, 12:24 AM

Greenie,
Having been to the Greenguy estates I understand completely. You could always rent a room to a local college girl

If Kim would let me I would gladly rent the pool house

With that being said, Bill has a very good point. Downsizing could release a whole lot of worries. Someone around here told me they love to rent because they can pick up and go at any time. Plus not having to pay for roofs, plumbing, etc... would be a relief (spent 15k last year on that crap).

There is no one right answer for everyone so figure out which one is best for you and run with it.

Greenguy · 2012-08-01, 01:05 AM

Thanks for all the advice - I do appreciate it

2012-07-31, 09:29 AM	#1
Cleo Subversive filth of the hedonistic decadent West Join Date: Mar 2003 Location: Southeast Florida Posts: 27,936	I'm sure that it's the last day of July 2012 in my part of this big spinning rock.. Glims made me grim as of last night. Before going on vacation I installed the enhanced version of it to try it out. Didn't really like what it did and had planned on removing it at some point but never expected it to stop Adobe GoLive from opening since it's a Safari plugin. Got home last night, tried to open GoLive and couldn't. Spent hours uninstalling Adobe applications. Making new user accounts, deleting caches and doing all the usual trouble shooting stuff that I would do. I was just about to give up and buy the Dreamweaver upgrade when I remembered about installing Glims. Busy day of playing catchup in work planned for today. __________________ Free Rides on Uber and Lyft Uber Car: uberTzTerri Lyft Car: TZ896289

2012-07-31, 09:56 AM	#2
Greenguy The Original Greenguy (Est'd 1996) & AVN HOF Member - I Crop Pics For Thumbs In My Sleep Join Date: Feb 2003 Location: Blasdell, NY (shithole suburb south of Buffalo) Posts: 41,758	Good Tuesday Everyone I'm in a bit of a better mood after doing some creative financing yesterday. We also have a call into the financial guy. Answer me this: Everyone tells me it's not advisable to take money out of your retirement plan to pay off your house. Something about writing off the interest on your taxes. But we're in a scenario where paying it off would really help as far as monthly expenses. Anyone have any info/thought on this? __________________ Promote POV Porn Cash By Building & Submitting Galleries to the Porn Luv Network

2012-07-31, 12:43 PM	#3
Ramster Life is good Join Date: Apr 2003 Location: Ottawa, Canada Posts: 11,680	Good day, lunch time soon and I'm starving. It's a weird scenario paying of your house from retirement money but in the end does your retirement money earn 4% a year? You're paying 4% a year on your mortgage interest I'd presume. And on average homes rise in value of course each year too. __________________ Pornstar Legends \| Live Cam Model Shows \| Hungarian Girls Skype: robmurray999

2012-07-31, 12:45 PM	#4
bDok bang bang Join Date: Mar 2005 Location: SD/OC/LA Posts: 3,241	Morning. Well one of the friends from Boston went home. The other will be here for another two weeks. She has her own place which is nice. However, she is over this morning to leech internet as the place she is staying doesn't have any. Had a great dinner last night out before we dropped the one person off at the airport. After that it was just catching up on some Olympic watching. Men's gymnastics really shit the bed. Was sad to watch. Alright. Just a lot more content moving around a ton of posts that I need to handle. __________________ submit to Nymphotic submit to Moistlace

2012-07-31, 03:49 PM	#7
RedCherry Of all the things I've lost, I miss my mind the most. Join Date: Apr 2004 Location: Middle of the Desert, Pahrump, NV Posts: 3,187	I'm with CD34, if you have it in an IRA account, the penalties for withdrawing it are substantial. If you just have it in a basic savings / trust/ something else, then not so bad. Best talking to your accountant about all that. Greenie, we went to our mortgage company and applied for the Making Home Affordable program. We gave them all our income info, and our mortgage payments are going down almost $900 a month. As opposed to withdrawing out of your retirement, you might want to try that route first. It is free and although being self employed we had to turn in about an inch of paper to them, we were approved rather quickly. We are in our trial period right now, and as long as we make Sept payment on time, we will be approved. It is a permanent modification, so even if our income goes up in the future, our payments will only rise slightly. (they cap the interest at whatever the fed is at the time the final paperwork is signed, and we will rise up to that over a period of 8 years then it is fixed from them on). They also do things like extend the term, and as a last resort, forgive some of the principal. My final docs won't print out until after sept. payment, but my loan officer says they normally start you at 2% interest which is fixed for 5 years. __________________ Our 3D Comics and Props on Renderotica Last edited by RedCherry; 2012-07-31 at 03:51 PM..

2012-07-31, 04:09 PM	#8
NY Jester ICQ:147079406 Join Date: Oct 2007 Location: RockMEHardplace Posts: 2,996	Afternoon GGB its only Tuesday but it feels like the week is going fast...thankfully. Hope everyone is doing well. __________________ The Sexy Side of Porn

2012-07-31, 04:28 PM	#9
JustRobert Bow Ties Are Cool Join Date: Jun 2006 Location: California Posts: 9,377	Good Day Took half a day off the contract job so I can work at home and watch the olympics. Greenie, I am also with cd34. Over the long haul your retirement account should do 6 to 8% on average. Of course lately its hard to see that and you never know when the economy will tank again taking your retirement account with it. Whereas if you just pay off the house its done and over with and should give you peace of mind no matter what the economy is doing, except for property taxes and insurance. I would love to be mortgage free but I just don't see it happening anytime soon. __________________ Submit Your Galleries To The Porn Luv Network!

2012-07-31, 05:40 PM	#10
Greenguy The Original Greenguy (Est'd 1996) & AVN HOF Member - I Crop Pics For Thumbs In My Sleep Join Date: Feb 2003 Location: Blasdell, NY (shithole suburb south of Buffalo) Posts: 41,758	I will say this: we are to the point that, if we don't do this, we would be forced to downsize/move and neither of us want to ever leave this house. __________________ Promote POV Porn Cash By Building & Submitting Galleries to the Porn Luv Network

2012-07-31, 07:16 PM	#12
MeatPounder Women might be able to fake orgasms But men can fake whole relationships Join Date: Oct 2003 Location: Fort Lauderdale, Fl Posts: 2,408	You are pretty close to being old enough to consider a reverse mortgage

2012-07-31, 07:43 PM	#13
dunc You can now put whatever you want in this space :) Join Date: Feb 2007 Location: Australia Posts: 658	My house is my retirement fund __________________ Good, Cheap Wordpress Themes

2012-07-31, 08:09 PM	#14
Bill Selling porn allows me to stay in a constant state of Bliss - ain't that a trip! Join Date: Apr 2003 Posts: 3,914	One of the best things I ever did was pay off my house and my debts in the good days. It's let me stay stable. I dont have a lot of advice to give about taking retirement money and paying off the house - other than, gather advice, run the numbers, and make a decision. Paying penalties to keep a house you love is a trade I might make - but financial guys might tell me I was dumb to do so. Downsizing, and letting go of something that ties you to the world in a certain way, might equally well be the right decision. That's a heavy choice to make. Almost a spiritual choice. Path of life kind of thing.

2012-08-01, 12:24 AM	#15
JustRobert Bow Ties Are Cool Join Date: Jun 2006 Location: California Posts: 9,377	Greenie, Having been to the Greenguy estates I understand completely. You could always rent a room to a local college girl If Kim would let me I would gladly rent the pool house With that being said, Bill has a very good point. Downsizing could release a whole lot of worries. Someone around here told me they love to rent because they can pick up and go at any time. Plus not having to pay for roofs, plumbing, etc... would be a relief (spent 15k last year on that crap). There is no one right answer for everyone so figure out which one is best for you and run with it. __________________ Submit Your Galleries To The Porn Luv Network!

2012-08-01, 01:05 AM	#16
Greenguy The Original Greenguy (Est'd 1996) & AVN HOF Member - I Crop Pics For Thumbs In My Sleep Join Date: Feb 2003 Location: Blasdell, NY (shithole suburb south of Buffalo) Posts: 41,758	Thanks for all the advice - I do appreciate it __________________ Promote POV Porn Cash By Building & Submitting Galleries to the Porn Luv Network