Talk of The Villages Florida - View Single Post - Pay cash or keep loan? Sorry, kinda wordy
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Old 07-21-2024, 10:42 AM
ElDiabloJoe ElDiabloJoe is offline
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Quote:
Originally Posted by melpetezrinski View Post
House and boat loan keep.
Assumptions:
Invest in fixed income earning 5% risk free. If you invest in securities, that would be a much bigger discussion around other assets availalbe in case of a downturn in the markets. Would also need to know your expected tax rate on the capital gains of said investments.

Auto loan pay off.
Thank you all for the thoughtful replies and responses.

I'm a buy and hold kinda guy who is moderately risk-averse, so my stock market investments and property investments are usually a minimum of a decade long. Even my cars I keep well over 10 years, my last was 17 years. I have exactly zero children so I plan to spend everything I have - just got to make it last at least as long as I do. Therein likes the trick.

As for the tax rate on capital gains, my state of primary residence has zero income tax, and zero taxes on investments and capital gains - so federal tax only.
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