Who will be better at getting America out of debt, Trump or Hillary?

see4 · Oct 16, 2016

twostrokenut said:
If cashing out 200k in your household puts you in the 300k tax bracket, which it would going by the median standard you are adhering to, then your taxes are 33% say 50% state and fed to be conservative. Still saves you 50k instantly which coincidentally is about the amount you were short to avoid PMI.

But now you are free to save your yearly earnings for the next two years (around 200k) and invest foolishly in what ever stocks or what not you have been dabbling in. Unless you are claiming your 200k investment would double in two years, which it won't.

So ya lets see some more math, like the estimated value of your home when you're 60, that was a good laugh. Even if it were a billion trillion so to would be all the homes in your town. You would have to move to an area with a lower cost of living to take advantage of that and those places are disappearing as I type this. You won't make it.

Not true. On mostly all accounts.

If you are referring to the sale of a home, he would not claim a dime on his taxes (unless lived in for less than 2 years of is income property). If refinancing then yes, he would have to claim as income, unless he uses to purchase another home or invests in retirement. But only up to a certain amount, will have to look up the exact numbers on that.

Even if he were to claim all $200,000 as income, his likely effective tax rate would be far less than 50% or 33% tax rates you've stated.

You're not clear on real estate investing. But usually most people make there money on real estate when they sell their home(s) high and buy another property low. So most savvy investors will estimate the right time to dump a home and the right time to pick one up. Somewhat similar to stock and bond markets.

So if he wanted to live in the same area, he would take advantage of dumping his current home on a high sellers market and buying in a buyers market.

Even if that were not possible, he could still take advantage of selling agent/broker advice and stage the home as to sell on the top end of the current market and buy at the middle-low end for similar homes.

I've done this several times with homes I've purchased and sold.

twostrokenut · Oct 16, 2016

UncleBuck said:
my wife wants to know what you do with the pennies, since it is a federal crime with a 5 year minimum sentence to deface united states currency.

Tell her I made her a souvenir.

UncleBuck · Oct 16, 2016

twostrokenut said:
Tell her I made her a souvenir.

she's genuinely curious what you do with your penny collection.

twostrokenut · Oct 16, 2016

see4 said:
Not true. On mostly all accounts.

If you are referring to the sale of a home, he would not claim a dime on his taxes (unless lived in for less than 2 years of is income property). If refinancing then yes, he would have to claim as income, unless he uses to purchase another home or invests in retirement. But only up to a certain amount, will have to look up the exact numbers on that.

Even if he were to claim all $200,000 as income, his likely effective tax rate would be far less than 50% or 33% tax rates you've stated.

You're not clear on real estate investing. But usually most people make there money on real estate when they sell their home(s) high and buy another property low. So most savvy investors will estimate the right time to dump a home and the right time to pick one up. Somewhat similar to stock and bond markets.

So if he wanted to live in the same area, he would take advantage of dumping his current home on a high sellers market and buying in a buyers market.

Even if that were not possible, he could still take advantage of selling agent/broker advice and stage the home as to sell on the top end of the current market and buy at the middle-low end for similar homes.

I've done this several times with homes I've purchased and sold.

He's talking about pulling 200k out to pay off his home which likely would incur zero tax as well.

UncleBuck · Oct 16, 2016

see4 said:
Not true. On mostly all accounts.

If you are referring to the sale of a home, he would not claim a dime on his taxes (unless lived in for less than 2 years of is income property). If refinancing then yes, he would have to claim as income, unless he uses to purchase another home or invests in retirement. But only up to a certain amount, will have to look up the exact numbers on that.

Even if he were to claim all $200,000 as income, his likely effective tax rate would be far less than 50% or 33% tax rates you've stated.

You're not clear on real estate investing. But usually most people make there money on real estate when they sell their home(s) high and buy another property low. So most savvy investors will estimate the right time to dump a home and the right time to pick one up. Somewhat similar to stock and bond markets.

So if he wanted to live in the same area, he would take advantage of dumping his current home on a high sellers market and buying in a buyers market.

Even if that were not possible, he could still take advantage of selling agent/broker advice and stage the home as to sell on the top end of the current market and buy at the middle-low end for similar homes.

I've done this several times with homes I've purchased and sold.

or i could just buy a used trailer for next to nothing.

twostrokenut · Oct 16, 2016

UncleBuck said:
goddamnit you are retarded.

View attachment 3806841

UncleBuck · Oct 16, 2016

twostrokenut said:
He's talking about pulling 200k out to pay off his home.

simply retarded.

first, we'd have to pull out closer to $300k worth of investments to have enough money left after taxes to pay off the balance of the mortgage.

even when conservatively invested, $300,000 would yield far more over 30 years then we would save by paying off the mortgage instantly.

your retort to this is that we should take everything we earn over 3 years, every penny of it, and start over again. i told my wife about this scamnario and she just laughed. she really wants to know what you do with the pennies though. melting them down and removing them from circulation is highly illegal.

see4 · Oct 16, 2016

twostrokenut said:
He's talking about pulling 200k out to pay off his home.

He has several options. One of which is to take it as a loan, in which case he can pay it back and not pay taxes on it. Another way is to pull money out and roll into a new retirement fund, and if he were to check local community investment firms, I'd bet for that amount he could find someone to write a deed note to his home. But that's not an easy process. And then finally he could take out $200,000 as person income, in which he would pay a 10% early withdrawal fee and owe 38% taxes and have an effective tax rate of something lower, probably can get it to 22-29% without raising any flags.

twostrokenut · Oct 16, 2016

see4 said:
He has several options. One of which is to take it as a loan, in which case he can pay it back and not pay taxes on it. Another way is to pull money out and roll into a new retirement fund, and if he were to check local community investment firms, I'd bet for that amount he could find someone to write a deed note to his home. But that's not an easy process. And then finally he could take out $200,000 as person income, in which he would pay a 10% early withdrawal fee and owe 38% taxes and have an effective tax rate of something lower, probably can get it to 22-29% without raising any flags.

To save over 100k in interest over 30 years. Taking it as a loan is not a bad idea, especially if it were in a Whole Life policy or similar where you can set your own terms, change them at will and the loan amount would not reduce the dividends earned. And of course not pay any early fees.

see4 · Oct 16, 2016

Investment math is pretty damn simple.

Bob has $250,000 to invest.

What would you tell him to do?

Invest in a money market that can garner 8% yearly return on their investment. Slightly conservative investing.

Invest in a home that will likely appreciate in value by a minimum of 5% year of year. Then you have to ask, if the home the primary residence? Is there room for upgrades for comparable homes? Is there a note on the home?

UncleBuck · Oct 16, 2016

twostrokenut said:
To save over 100k in interest over 30 years.

$200k conservatively invested would make way more than that in 30 years.

my wife really wants to know more about the penny scam. how many pennies at a time do you get? and do you melt them down? are you aware that the bank is likely sending your info to the feds?

see4 · Oct 16, 2016

twostrokenut said:
To save over 100k in interest over 30 years. Taking it as a loan is not a bad idea, especially if it were in a Whole Life policy or similar where you can set your own terms, change them at will and the loan amount would not reduce the dividends earned. And of course not pay any early fees.

Yes, you're accurate to say that. But it will all depend on outstanding mortgage and interest rate. If still carrying a note, what is the APR? Deduct that amount by interest earned percentage, and that's your year return. If it's above zero, it's a possible smart move.

see4 · Oct 16, 2016

UncleBuck said:
$200k conservatively invested would make way more than that in 30 years.

my wife really wants to know more about the penny scam. how many pennies at a time do you get? and do you melt them down? are you aware that the bank is likely sending your info to the feds?

Over a 30 year period, if you can gain just an average of 7% return, your $200,000 today would be worth $1.56 million then.

twostrokenut · Oct 16, 2016

see4 said:
Investment math is pretty damn simple.

Bob has $250,000 to invest.

What would you tell him to do?

Invest in a money market that can garner 8% yearly return on their investment. Slightly conservative investing.

Invest in a home that will likely appreciate in value by a minimum of 5% year of year. Then you have to ask, if the home the primary residence? Is there room for upgrades for comparable homes? Is there a note on the home?

250k would mean there's no note on the home.
The home is the primary residence.
Bob is trying to start a new family.

see4 · Oct 16, 2016

twostrokenut said:
250k would mean there's no note on the home.
The home is the primary residence.
Bob is trying to start a new family.

Then how much does Bob expect to gain yearly in return? What is the historical trend in his area? What is happening in the area that makes it worth it for the future?

UncleBuck · Oct 16, 2016

see4 said:
Over a 30 year period, if you can gain just an average of 7% return, your $200,000 today would be worth $1.56 million then.

i was thinking 4-6% would be a decent return.

my wife is dying to know about jimbob's penny scam. but jimbob in the trailer won't say.

see4 · Oct 16, 2016

UncleBuck said:
i was thinking 4-6% would be a decent return.

my wife is dying to know about jimbob's penny scam. but jimbob in the trailer won't say.

5% yearly return would yield you about $860,000 with a $200,000 investment.

Depending on your area, you'd probably be better off putting into your home if you are carrying a note.

twostrokenut · Oct 16, 2016

see4 said:
Then how much does Bob expect to gain yearly in return? What is the historical trend in his area? What is happening in the area that makes it worth it for the future?

150% appreciation in the last 5 years.

see4 · Oct 16, 2016

twostrokenut said:
150% appreciation in the last 5 years.

30% average yearly returns over the past 5 years is far better than any aggressive money market investment I've ever heard of, unless of course you ties to institutional investing. Then I would say 150% over 5 years is quite easy.

twostrokenut · Oct 16, 2016

see4 said:
30% average yearly returns over the past 5 years is far better than any aggressive money market investment I've ever heard of, unless of course you ties to institutional investing. Then I would say 150% over 5 years is quite easy.

The home, the area.

How much do you owe on your primary residence out of curiosity?

Who will be better at getting America out of debt, Trump or Hillary?

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