Completely inappropriate question about financial matter

Quote: DorothyGale

You have nothing valuable to add ... go troll some other thread.

--Dorothy

Usually happens when a direct hit is made on someone who loathes direct hits!

Quote: JerryLogan

Usually happens when a direct hit is made on someone who loathes direct hits!

Yes, of course. And, as we all know, getting "direct hits" is the point of life! Or, barring that, the point of this forum. Oh, wait. That's wrong, too? Well darn.

Quote: rdw4potus

Yes, of course. And, as we all know, getting "direct hits" is the point of life! Or, barring that, the point of this forum. Oh, wait. That's wrong, too? Well darn.

I guess this thread is over, oh well, it was valuable while it lasted. Now that Logan has ruined yet another good thread ... I have an appointment with two separate financial advisers lined up today ... I appreciate the advice given here by those capable of giving good advice.

It's fine with me to end threads in the face of trolls. I can cite Godwin's law here, if need be.

--Dorothy

Quote: DorothyGale

I guess this thread is over, oh well, it was valuable while it lasted. Now that Logan has ruined yet another good thread ... I have an appointment with two separate financial advisers lined up today ... I appreciate the advice given here by those capable of giving good advice.

It's fine with me to end threads in the face of trolls. I can cite Godwin's law here, if need be.

--Dorothy

Ha! If you needed the advice of people here on your financial matters, what's that say about where you go for spiritual advice!

pay off the mortgage. post your house as collateral to finance a whole life insurance policy putting in the maximum premium you can each year probably for a period of 10-15yrs. as your policy accumulates cash value, you can use up to 90% of the surrender value of your policy as collateral instead. when the policy accumulates enough cash value, pay back the loan. the longer you live the more your policy is worth. from that point on whenever you need money borrow against the policy.

basically the whole idea is to get free life insurance. the policy earns a higher return than the interest you pay on the loan. insurance companies typically earn at least 8% on the money they pool together while the cost of the loan lets assume will be around 5%. so you make 3% off of the loan and are covered in case you die. the death benefit is then used to first pay back your creditor and the rest is given to your beneficiary. typically the loan rate will be less when the bank knows where your money is going since they are protected by the death benefit of the insurance policy in case you happen to die.

if you borrow all the premium payments up front. you can then invest that money elsewhere while paying the premium each year and paying back interest and part of the principal on the loan.if you borrow the whole amount up front, the more collateral you will have to post. if you borrow it year to year, the less collateral you will have to post.

Quote: JerryLogan

Ha! If you needed the advice of people here on your financial matters, what's that say about where you go for spiritual advice!

Your replies have the tenor of a well known troll -- a man by the name of Ray Cagno, a.k.a. "Stalker." He delights in doing just what you are doing. Nice guy otherwise.

--Dorothy

Quote: DorothyGale

Your replies have the tenor of a well known troll -- a man by the name of Ray Cagno, a.k.a. "Stalker." He delights in doing just what you are doing. Nice guy otherwise.

--Dorothy

You shoulnd't waste your time arguing with JerryLogan. It's like arguing with an angry, bitter wal.

Quote: Nareed

You shoulnd't waste your time arguing with JerryLogan. It's like arguing with an angry, bitter wal.

Of course ... no need to even say it ...

Here is my answer ...

I am refinancing down to a conventional loan at $417k, 0 points, 15 years, 4.00% interest rate. Formerly I had a 30 year jumbo loan for $548k at 5.25%. I will pay the difference in cash.

It turns out that this re-fi creates positive cash flow with my current investments -- in other words it makes more money for me to have this loan than if I had no loan at all. The math took me several hours, but I figured it out, with the help of a financial adviser. I visited two advisers. One of the advisers couldn't keep up with me, so I walked out on him in about 10 minutes, the other was pretty good. Neither completely understood the math. Balancing taxes, investments, equity, liability and future earnings is tough.

But, it's also very helpful to have the opinions given here ...

[edited addition -- the re-fi is on hold... pending a conversation with yet another adviser...]

--Dorothy

Here's a flash Dorothy. No one not in your household really cares a lick about your finances, so what kind of advice are you dumb enough to listen to from a group like this anyway. It's like that stupid "Traffic rules" thread that is just a way for posters to to kill time they'd probably use for more productive reasons. I thought this forum was for gambling advice and not to help solve someone's personal problem who's deep in debt and is looking for a way out of being over their head.

for my two cents, I do not recommend paying off a mortgage with a low rate like 5.25%... if you can refinance at about 4.25% do so.

Since you get a tax break, you are really borrowing 5.75% money at something like 3.75% with the tax break and IMO you should borrow as much as you can afford at that rate. If, however, you are not an investor and just put your money into CDs, I might change my mind.

If you don't like to gamble that earnings on your investments can't beat 3.75%, even *after* you *do* pay taxes on that, then you shouldnt be coming to a gambling site [vbg].