NEVER pay off your mortgage

mkd · May 21, 2021, 03:17 PM

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So here is a thought experiment.

I know it's not super original, what with people using a first property to leverage a second, third, fourth. But the new current situation, is it seems like such a no brainer to trade a 3% mortgage for a 8% S&P500 $SPY return.

what say you? just stick to paying off your house before retirement or do a mild YOLO?

neurosis · May 21, 2021, 04:05 PM

I haven't watched this yet but this is something that I've been thinking about.

I'll have my mortgage paid off in the next 5 years.

mkd · May 23, 2021, 09:03 PM

So cash out an 80% loan to value loan of your primary residence and do what?
1. YOLO GameStop/ Bitcoin
2. diversified Stock market play
3. Put 20% down on as many rental properties as the starting 80% will buy, to gain appreciation on multiple units.
4. Boats and Ho's
5 Cocaine

I'm kinda curious if us machinist types are thinking outside their box (house),

The video entails mortgaging til you die, with refinancing every 12 years to 80%. Any how it seems like a good way to exponentially increase real estate holdings on that schedule.

HTM01 · May 24, 2021, 03:37 AM

there is no better feeling (financially) than not owing anyone a penny

gcode · May 24, 2021, 01:20 PM

you guys are out of your f'n minds
With Dementia in Chief in charge, the printing presses running full bore
.guv's boot on the energy sector's neck, and the coming dependence on foreign oil,
massive new taxes working their way thru congress
etc etc etc, we could see a 50% retraction
in the blink of an eye

In 2005 I bought a house in LaLa Land for $397K and put $60K down
3 years later my neighbor walked away from his mortgage and the house got flipped for $165K
That was a sick feeling and I never want to go there again!

This is the kind of thinking that caused the crash of 1929 and a decade of starvation and depression

Matthew Hajicek · May 24, 2021, 02:27 PM

I'd rather invest in producing value. Making a machine down payment today.

mkd · May 24, 2021, 04:43 PM

Quote from: gcode post_id=11579 time=1621887653 user_id=60you guys are out of your f'n minds
.
.

This is the kind of thinking that caused the crash of 1929 and a decade of starvation and depression

Nothing wrong with a bitch-slap back to reality.

Black Monday 1987, I remember fairly well being that in lived in the same state as Wall Street. That was caused by a Tax deadline that I'm too lazy to google.
With the inevitable inflation coming after never before seen in the US (but history is replete with examples) currency creation where to hide your equity?

1. leave it sitting in your house
2. leave it in your 401K
3. cash in the bank? US bonds?
serious question. Not just being a goofball. Where's ROY?

Matthew Hajicek · May 24, 2021, 04:53 PM

Seems a good time to take on debt. Buy machines, equipment, etc. Get in fast, the prices are already going up.

mkd · May 24, 2021, 05:02 PM

[quote="Matthew Hajicek" post_id=11590 time=1621891635 user_id=57]
I'd rather invest in producing value. Making a machine down payment today.
[/quote]

Are you getting into a screw machine-type situation?

gcode · May 24, 2021, 05:40 PM

Quote from: mkd post_id=11598 time=1621900962 user_id=155[quote="Matthew Hajicek" post_id=11590 time=1621891635 user_id=57]
I'd rather invest in producing value. Making a machine down payment today.

Are you getting into a screw machine-type situation?
[/quote]

I was going to say something snarky about Haas, but what's the point ...

Here's Johnny! · May 24, 2021, 06:10 PM

Quote from: gcode post_id=11600 time=1621903211 user_id=60
Quote from: mkd post_id=11598 time=1621900962 user_id=155[quote="Matthew Hajicek" post_id=11590 time=1621891635 user_id=57]
I'd rather invest in producing value. Making a machine down payment today.

Are you getting into a screw machine-type situation?

I was going to say something snarky about Haas, but what's the point ...

[/quote]

Don't mention Haas Lathes....they are horrible!

gcode · May 24, 2021, 06:35 PM

Quote from: JFord post_id=11601 time=1621905003 user_id=140
Quote from: gcode post_id=11600 time=1621903211 user_id=60
Quote from: mkd post_id=11598 time=1621900962 user_id=155Are you getting into a screw machine-type situation?

I was going to say something snarky about Haas, but what's the point ...

Don't mention Haas Lathes....they are horrible!

That's what I was saying
Hass = you are screwed, machine

Matthew Hajicek · May 24, 2021, 06:42 PM

Quote from: mkd post_id=11598 time=1621900962 user_id=155[quote="Matthew Hajicek" post_id=11590 time=1621891635 user_id=57]
I'd rather invest in producing value. Making a machine down payment today.

Are you getting into a screw machine-type situation?
[/quote]

I'm putting a CM-1 in my garage. 50K RPM, 36 tools, fourth on it, wired for five. I figure it should be a decent entry point for the small medical device parts I'm making.

mkd · May 24, 2021, 08:44 PM

[quote="Matthew Hajicek" post_id=11603 time=1621906959 user_id=57]

Quote from: mkd post_id=11598 time=1621900962 user_id=155[quote="Matthew Hajicek" post_id=11590 time=1621891635 user_id=57]
I'd rather invest in producing value. Making a machine down payment today.

Are you getting into a screw machine-type situation?
[/quote]

I'm putting a CM-1 in my garage. 50K RPM, 36 tools, fourth on it, wired for five. I figure it should be a decent entry point for the small medical device parts I'm making.
[/quote]

Make sure you work them on price. Have no idea why those are more expensive than their large envelope mills. VF-1 is cheaper list, which I'm 100% sure you've considered. For that money you could get an older full Y axis milling lathe, which will fit in a garage, which i'm also 100% sure you've considered, so i'll shut the hell up.
Don't bother with the 5 axis wiring. Any table top haas trunnion is garbage. Look nice in the pics....
~~Also keep in mind those are grease pack spindles. Cheapest of the cheap, with limited duty cycle if you want them to live.~~ oh I guess they arre air/oil
Oh, and congrats on taking the plunge. Sure wish i didn't 10 years ago..

CNCAppsJames · May 24, 2021, 08:48 PM

Sadly, in this craphole I call home; The People's Republik of Kommieforniastan, even if I were to pay off my home lock, stock and barrel, I would still be paying those mental defects in Excremento around $1,000/mo.

The reality, is you don't own much. The government owns it and they lease it to you.

If folks want to go down that road, go right ahead, but, don't say you weren't warned, and most importantly remember, you won't just be taking yourself down, you'll be taking your family or anyone with financial ties to you down with you as well.

A once close friend in 2006 unwisely did precisely what you are proposing. In my mind (and my wife's too) I heard Chris Rock's voice "Man, I wouldn't do that shit if I was you...". They wanted us to invest in their venture with them. We had some money that we could have if we were so inclined. They roped her dad into it. He was a Lawyer. Further proof that college degrees don't equate to smarts. Fast forward Q1 2009 the chickens came home to roost. They had to declare bankruptcy. As did her father. Big deal you may say? Well, you may not know this but if you're a lawyer and you declare bankruptcy you can no longer practice law. Don't be someone else's' cautionary tale... unless you want to be, then, by all means do what you gotta do.