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  #21 (permalink)  
Old 02-28-2012, 02:22 PM
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I was 25 when I paid off my debt (see below )

However, we bought a house in 2009 with a mortgage... we hope to have it paid off in 5 years (I would then be 34).
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Old 02-28-2012, 05:09 PM
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My goal is to be debt free. I haven't put a timeline on my goal though. We owe about $91k including our home that is $50k of it.


Quote:
Originally Posted by disneysteve View Post
Very true. We owe 68K on our house but have a 500K investment portfolio. We could pay off the house at any time if we wanted to but with a 3.99% mortgage, it isn't high on my priority list.
I'd like to be in your position disneysteve. I'm working to get there, I just wish I had been smarter at a younger age. I've been reading your post for a long time and your commitment to saving and good decision making is pretty impressive!
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  #23 (permalink)  
Old 02-28-2012, 06:02 PM
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Quote:
Originally Posted by Stump1000 View Post
I'd like to be in your position disneysteve. I'm working to get there, I just wish I had been smarter at a younger age. I've been reading your post for a long time and your commitment to saving and good decision making is pretty impressive!
Thank you. I, too, wish I had been smarter at a younger age. Don't we all. Despite that, we've done okay for ourselves and I'm trying my best to teach good money management to our daughter. She actually has to take a mandatory financial literacy course next year and I'm waiting to see what she has to say about that. I doubt it will tell her anything we haven't already taught her. In fact, I'm pretty sure we've gone well beyond whatever that course will cover. If she could opt out, I'd let her but she's stuck taking it.
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Old 02-28-2012, 06:30 PM
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Quote:
Originally Posted by disneysteve View Post
Thank you. I, too, wish I had been smarter at a younger age. Don't we all. Despite that, we've done okay for ourselves and I'm trying my best to teach good money management to our daughter. She actually has to take a mandatory financial literacy course next year and I'm waiting to see what she has to say about that. I doubt it will tell her anything we haven't already taught her. In fact, I'm pretty sure we've gone well beyond whatever that course will cover. If she could opt out, I'd let her but she's stuck taking it.
What have you done to teach her through the years? My daughter is 21 months old, so financial education will have to wait a bit more , but giving her good money management skills from a young age is a top priority for us. I'd be interested to learn what you did with your daughter.
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Old 02-28-2012, 09:45 PM
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I avoided debt over the years, but for a long time I had saved very little as well. That changed in '98 when I got a house (mortgage) and paid it off just before I turned 49 (last fall - 2011). I've been debt free ever since. Even with smaller paychecks this year (due to extra large 457 retirement plan investments each paycheck) money just isn't an issue any more.
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Old 09-23-2017, 09:39 PM
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Moved out of the house at age 17, went to college and racked up $14,000 in student loans at the height of it, maxed out the credit card at $3,500, got backtracked with three years of unpaid federal taxes,

but if all goes well, I'll finally have all of this cleared up about two weeks after my 27th birthday in roughly a month.

Got a full-time job during my last 2-3 years in college and began paying down that loan. Moved back in with my parents recently (been here for the past 4 months), so I've been able to put more money towards that debt.

It's taken a total of about 3-and-a-half years to get here almost clear .
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Old 09-24-2017, 06:12 AM
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2002 was the last year I carried any debt. I was 39 at the time. It was a loan from a 401k to finance a bank stock IPO I was a customer of in 1999 during a period when I had no surplus money due to a relatively large tax obligation from a Roth IRA conversion which kept me indigent until I freed some funds in 2000 by terminating an investment partnership I managed over a dispute in timing an asset sale with a sizeable gain 1999 and in retrospect a good move as I avoided the tech bubble crash with those funds.


BTW I have been mortgage free since 1997 when I sold the higher valued property of the two repo real estate purchases that I made in 1991 stemming from the S and L crisis to partially fund the tax burden on my Roth IRA conversion.

Last edited by JBinKC; 09-24-2017 at 06:39 AM.
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  #28 (permalink)  
Old 09-24-2017, 06:13 AM
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This is a very old thread but sometimes it is neat to look back at those.

In February 2012, I posted this:
Quote:
Originally Posted by disneysteve View Post
We owe 68K on our house but have a 500K investment portfolio. We could pay off the house at any time if we wanted to but with a 3.99% mortgage, it isn't high on my priority list.
Today, 5-1/2 years later, we still have a mortgage, owing about $30,000.

But our 500K portfolio is now well over 900K.

Since then, we have also nearly finished putting our daughter through school. We have one more tuition payment due in January. We have borrowed and repaid a 15K PLUS loan. I bought a car later in 2012 which was paid for about a year later. We paid off my wife's van. We helped our daughter get her first car which is paid for.

So am I concerned or upset that we still have a small mortgage? Not in the least. There is certainly nothing wrong with being debt free but I also think it's important to focus on the big picture. Simply having debt does not mean that you are somehow failing or doing poorly financially. I think by most measures, we are doing rather well despite not being debt free.
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  #29 (permalink)  
Old 09-24-2017, 10:10 AM
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We'll be debt free in four weeks.

But within six months, though, we'll have a HELOC for house repairs, and in probably 3 years a new car loan.

And none of this takes into account liabilities like the annual property tax bill.
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  #30 (permalink)  
Old 09-24-2017, 11:49 AM
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Quote:
Originally Posted by Nutria View Post
We'll be debt free in four weeks.

But within six months, though, we'll have a HELOC for house repairs, and in probably 3 years a new car loan.
We just opened a HELOC. I wrote a 15K check a couple of weeks ago for the insurance policy I need due to leaving my practice. Now that the student loan is gone, we can attack that. We paid off the 15K student loan in 1 year. We can probably knock this out even faster since we only have one more tuition payment and my income has gone up. That will leave just the mortgage which will be under 30K meaning we should be able to get rid of that in about 2 more years.
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  #31 (permalink)  
Old 09-24-2017, 12:48 PM
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I was just reviewing my post from 5.5 years ago. We just financed a new car purchase a couple of weeks ago, so we are no longer debt free. (Debt Free--that didn't last long )
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  #32 (permalink)  
Old 09-24-2017, 01:02 PM
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Quote:
Originally Posted by Like2Plan View Post
(Debt Free--that didn't last long )
I've never been debt free. Student loans, car loans, mortgage, HEL, another student loan, now a HELOC. I'm 53. One of these days, perhaps within the next 5 years, we may manage to be debt free for the first time in our adult lives.
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  #33 (permalink)  
Old 09-24-2017, 02:18 PM
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Just this year in 2017 I wrote a $21,000 check to pay off my mortgage so at 51 yrs old I am literally for the first time in my lifetime as an adult debt free.
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  #34 (permalink)  
Old 09-24-2017, 05:37 PM
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Paid our house off 2 years ago, that was our last remaining debt. I was 48
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  #35 (permalink)  
Old 09-24-2017, 07:07 PM
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Age 42 (two years ago). But we don't own a home any longer. Too much moving around with the military. Have paid for four college semesters and one summer class for our daughter without loans so far.
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  #36 (permalink)  
Old 09-24-2017, 10:56 PM
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Currently 31, and I don't expect to be debt free for at least the next 10 years. My only debts are a pair of 15-yr mortgages on the two houses we own -- one 5 years old, the second just 1 year in. At some point I'm sure I'll accelerate the payoff for one or both of them, but I'm not in a rush. My mortgages are fixed at only 2.75% and 2.375%, so I can easily invest my money and reasonably earn 2-3 times that (which I am doing).

Debt is a tool. It feels good to pay off debts, but if used appropriately, it's worth using. I will say, though, that I do look forward to eventually not having any debt payments to make. I'm just not overly stressed about the timeline of when that will happen.
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  #37 (permalink)  
Old 09-25-2017, 01:13 AM
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Quote:
Originally Posted by kork13 View Post

Debt is a tool. It feels good to pay off debts, but if used appropriately, it's worth using.
I agree. It made more sense to me to get a loan at 0% interest than to use savings that was earning 3-4% interest. Even so, I know it will feel great when the note is paid off.

Last edited by Like2Plan; 09-25-2017 at 01:43 AM.
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  #38 (permalink)  
Old 09-25-2017, 07:23 AM
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I was debt free for 6 years after I paid of student loans. Now back in debt with a mortgage for the next 15 years.
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  #39 (permalink)  
Old 09-25-2017, 07:26 AM
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We were free and clear of all debt at around age 45, then borrowed some when we bought our lake home at about age 48. Got tired of those payments after a couple years and went ahead and paid it off. 57 Now and no plans for any more heavy borrowing unless I get a sweet business opportunity.
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  #40 (permalink)  
Old 09-28-2017, 09:47 AM
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I'm definitely not debt free at age 30.

Owe 58k (3.5%)on my residence,
9k(1.99%) on my car
13k(1.99%) on wifes car
45k (4.6%) investment property (Pays full mortgage + $200/mo surplus)

That being said, I have ~150k in taxable brokerage account. I could pay it all off, but I would be losing positive cash, by depleting investments.

Recently, I re-structured my investment property, so it'll be going down to 4%. And I have decided to aggressively pay that off (dialed back taxable investing). I like the idea of aggressively paying off anything w/ over 4% interest.

It just seems like it is too little of a benefit to pay off the house the more I look at it. For the past 5 months I have been paying a lot on top of primary residence, but it doesnt make since anymore. Especially because the investment house (shared w/ my brother) debt is being re-structured so instead of ME holding the mortgage in my name, we will split the debt&income and pay off house w/ our individual helocs. Now it is a clean, and organized pay off that we can handle individually.

Long story short, I could be debt free.... It just doesn't make since if my objective is to maximize my money's growth potential.

But for those who choose to not to leverage debt, I can totally understand the flip side. Being guaranteed to a rate of your interest rate %, is always still a very acceptable return! And burden off of your shoulders when paid off. I'll probably be there some day, but for now I'll take advantage of leveraging....

Note* I do HATE cars, and paying for them. They are easily the least rational piece of my debt. Even though they were bought used, w/ really low miles, and for much under MSRP (still had warranty).
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