ROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEX
28 August 2014, 05:32 AM | #1 |
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I’ve done something terrible. Please remove my WIS badge.
I’ve sold quite a few watches from my collection lately with the intention to buy a new piece.
I recently got my mortgage statement and I am very close to paying it all off. So I dumped all the cash towards the mortgage and saved almost 2 years’ worth of payments. I am 2 years away from being done. I know this is definitely not the WIS thing to do but I feel great. Really great. I still have a few pieces left that I enjoy wearing plus being mortgage free will eventually allow me to buy more pieces for the collection. Sorry for the crazy talk. I'm not suggesting anyone does such an irrational thing but just sharing my madness.
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28 August 2014, 05:51 AM | #2 |
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We may all be watch idiot savants here, but we're grownups too! good on ya for making the sound financial move!!!
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28 August 2014, 05:55 AM | #3 |
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28 August 2014, 05:55 AM | #4 |
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Amazing feeling!! Congrats on a great decision.
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28 August 2014, 05:56 AM | #5 |
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28 August 2014, 05:57 AM | #6 |
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28 August 2014, 05:59 AM | #7 |
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As unsatisfying as that decision was, it was the right thing to do. Just think, now you can funnel ALL those monthly mortgage payments into your next Rolex!
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28 August 2014, 06:01 AM | #8 |
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We paid off ours years ago, when all the financial advisors on TV and the radio said it was a bad move as your house is "dead equity." But we ran the numbers and it IS a smart move, and is a huge psychological weight off of you. You will feel free.
The only negative is you get the twice a year real estate tax bill sent to your house, instead of it being buried in the mortgage payment |
28 August 2014, 06:06 AM | #9 |
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Good for you! :-)
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28 August 2014, 06:15 AM | #10 |
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Excellent decision, you have your priorities straight. Kudos to you!
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28 August 2014, 06:53 AM | #11 |
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Most of us got ourselves in the position to be able to afford niceties like a Rolex or three by being fiscally and financially prudent. I'm not an attorney but I don't expect an indictment to be handed down in this case.
Good for you!
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28 August 2014, 06:56 AM | #12 |
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wise move ,,, better than rolex gold.
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28 August 2014, 07:18 AM | #13 |
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28 August 2014, 07:30 AM | #14 |
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You did the smart thing
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28 August 2014, 08:50 AM | #15 |
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Well, I guess you had a very short mortgage.
If it was a long one (>10-15 years) you had already paid all the interests, so I think at this point it did not really make a big difference. Anyway, I understand you just wanted to get off the hook... |
28 August 2014, 09:07 AM | #16 |
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The only time I advise people to keep the mortgage is when their interest rate is half the % rate that they can earn in an alternative investment of the cash.
The after-tax rate of return can be as high as 20% if they consider the lost tax advantages of the mortgage payments + the gain on the investment. But when a mortgage approaches it's final 4-5 years, the inversion makes payoff a better choice. Good on ya for doing the smart thing
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28 August 2014, 09:11 AM | #17 |
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Congrats! We've kept our mortgage rather than totally pay it off because the interest is so low (2.6% @ 15 years from an initial 6.25% at 30 years) and it allows us to keep some of our assets more liquid. But maybe you can start putting that payment amount towards your watch fund!
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28 August 2014, 09:17 AM | #18 | |
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Quote:
I was a "debt slave" for over 40 years; I figured out that I could never retire until all my debt was paid off....talk about motivation !! You are on the right road sir; enjoying our watches, with no debt, is icing on the cake!
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28 August 2014, 09:30 AM | #19 | ||||||||
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Quote:
Very true. Thanks. Maybe I deserve that. ;) It feels great. Thanks. Quote:
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Thank you :) Quote:
Thank you. Quote:
A smurf would be nice though. ;) Thanks. Quote:
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28 August 2014, 09:31 AM | #20 | |
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Quote:
Very true. Thanks. :)
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28 August 2014, 09:44 AM | #21 | |
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My reasoning is: once the mortgage approaches 4-5 years at that point it makes sense to keep paying the mortgage (which has very little interest) and perhaps invest the money somewhere else rather than payoff the mortgage. I think one has to consider the actual interest left to be paid rather than the mortgage rate. |
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28 August 2014, 09:49 AM | #22 |
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If at all possible, it is my opinion that it is better to be debt free.
I must admit though that I don't know a damn thing about money.
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28 August 2014, 09:58 AM | #23 | |
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I understand what you are saying though, dollar-wise it will not cost a lot to keep making the payments. And near the end of a mortgage, the tax advantages are probably not that significant seeing as only the interest portion of payments are deductible. Still, even at the end of a mortgage you are still paying an interest rate on the outstanding balance. The interest is small because the loan is small. So if you have the idea why not just keep the payments since the interest is so small, then what's the big benefit in investing that money elsewhere - that won't amount to much either. If immediate liquidity is not important (and it doesn't appear to be to the OP since the funds were being saved to buy a Rolex), then there are cash flow advantages from getting out from under the payments sooner. Not to mention sleeping better.
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28 August 2014, 10:07 AM | #24 |
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Congrats! And good decision!
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28 August 2014, 10:10 AM | #25 |
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28 August 2014, 10:17 AM | #26 | |
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Quote:
If that is less than alternative investments than it makes more sense to keep the mortgage and toward the end that is likely the case. |
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28 August 2014, 11:32 AM | #27 |
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Good on you for making the right choice. Doesn't matter what the opportunity cost of capital was in this case, as OP was going to buy luxury goods with the funds.
You will be in a position to comfortably buy an even better watch when it's all said and done! |
28 August 2014, 12:54 PM | #28 |
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That's the best move! I didn't even allow myself to start collecting until I was completely debt free. Once you get there the real fun starts! Best of luck to a fast payoff
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28 August 2014, 01:32 PM | #29 |
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After your mortgage is paid off think of all the extra $$$ you'll have to spend on watches.
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28 August 2014, 01:57 PM | #30 | |
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Thanks. I hope so. :)
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