Quote:
Originally Posted by FredJacobs
According to the TV metro statistics, more than half the buyers of homes pay cash without getting a mortgage. Think about it - you have been living in the same house for 40 years and it has appreciated to as high as 10 times your purchase price. Now you have this cash and move to TV. Assuming your IRA's and 401-K's are are fully funded, it makes sense to pay cash and not go through the hassle of a mortgage or pay interest - especially when you can't deduct it on your taxes because you don't qualify for itemized deductions.
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Your post is close to my/our reality. We lived in the same house for roughly 40 years and got 8-9x what we paid for it-the contract price. However due to MORTGAGE RATE we paid roughly 3x the contract price. INFLATION-I have ONE POUND coffee cans full of screws and that sort of stuff. It was a full pound not like 12 ounces and they are marked ninty-nine cents. I looked at other stuff jeans, shoes, cars most everthing except electronic stuff has gone up the same 8-9x.
IRAs, the rude shock. Yes, I put the money in and it was pretaxed money. When, you take that money out, or are forced to take it out, it is not taxed as long term gains it is taxed as regular income.
We all need to do what we need to do. For me, things are pretty good. We all want. No one wants to pay. I was an overnight success. It only took me 45 years of hard work and investing