Paying off mortgage

ironchef · Feb 7, 2017

Overnight said:
If you like debt, why did you pay your debt off?

As I said because I could. I did not say I had no debt. I have margin accounts, I have mortgages on my investment properties..... But I don't borrow to purchase depreciable assets like my auto or boat.

I am not trying to argue, but as Sle said, there were good debts and bad debts. As an investor/trader we need to recognize which is which in order to prosper.

Regards,

Overnight · Feb 7, 2017

jj90 said:
You assume one has to pay the debt back. A very simplistic worldview.

Yeah, I do not fear Tony coming to my house to break my kneecaps if I do not pay off my loan. But lol, methinks this thread is getting a bit too off-kilter at this point. I blame myself for bringing up alternative viewpoints, not backed by science.

ironchef · Feb 7, 2017

Overnight said:
Uh, no, I'd ask President Wilson about it. But he's dead. https://en.wikipedia.org/wiki/Federal_Reserve_Act

President Trump's businesses carry billions of debt in perpetuity.

algofy · Feb 7, 2017

jj90 said:
You assume one has to pay the debt back. A very simplistic worldview.

Eventually all debts must be paid back or go bankrupt. How is this a simplistic world view?

stevegee58 · Feb 7, 2017

Well you could borrow the money, live off it, then die of old age.
Wouldn't care much at that point.

luisHK · Feb 7, 2017

algofy said:
Eventually all debts must be paid back or go bankrupt. How is this a simplistic world view?

many debts get renegociated in better terms for the debtor, sometimes to oblivion, and bankrupcies are not necessarily as much a disaster for the debtor as for the creditor, especially when they concern corporations, a fact that helps a lot the renegociation of the debt

jj90 · Feb 7, 2017

algofy said:
Eventually all debts must be paid back or go bankrupt. How is this a simplistic world view?

You answered your own question as did @stevegee58.

stevegee58 · Feb 7, 2017

jj90 said:
You answered your own question as did @stevegee58.

Pff. I was being facetious of course.

ironchef · Feb 7, 2017

algofy said:
I'm not going to put my family home in jeopardy for some investment. It may not make mathematical sense but risk adjusted its a better play IMO.

I actually agree with you 100% on this and that is the other reason I don't carry a mortgage on the house I live in.

Best wishes.

wrbtrader · Feb 7, 2017

stevegee58 said:
Well you could borrow the money, live off it, then die of old age.
Wouldn't care much at that point.

Sounds great...but....

Lets say you share a home with your spouse. They can go after the home and throw her/him out on the street because you had an unpaid debt involving the home ? This is why I mention some types of insurance policies on the home will pay in case of debt by the owner with love ones still living in the home.

Also, I remember reading somewhere that a woman with 80k in student loan debts had died and the student loan agency went after her husband for the unpaid debt.

If this is true or close to the truth...doesn't make sense to accumulate more debt in their golden years if they're still married. Thus, marital status and age seems to have an impact about if the debt accumulation is ok or not ok.