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<blockquote data-quote="farmerjan" data-source="post: 1607373" data-attributes="member: 25884"><p>One other thing I wanted to comment on. You said that at 4% interest, you have been told to just keep making the payments, not pay it off. And that you didn't want to take it out of your savings to pay it off. Not to be nosy, but what is your savings paying you? I have PART of my retirement account money in a guaranteed return account at 2.5% but it is liquid so I can get at it if I need it. The rest is in higher risk, and usually higher return, but at my age, I don't want to carry a big risk because there aren't the years to "come back" if we have another drop like in 2008/2009.... I lost half of my small retirement and when I made it back, I moved a bunch of it to a safer account. A regular savings account is less than 1% ??? If I had debt that was costing me 4% and I was only earning 2%, then I am losing money. I would pay off the debt, then I wouldn't be paying any out and even at a very modest interest, I would be gaining a little. You are looking at "losing money" in a small return account against inflation, but it is still better than paying out a 4% interest rate. You could take money out of your savings, pay off/down on that debt and the money saved from the initial monthly payment could be socked back into the place. Equity ...... </p><p>I don't think he has all the answers..... But have you ever read anything by Dave Ramsey? He is big on not having any debt, except a mortgage, and then how to invest to be "rich" and there are all kinds of tax shelters to be able to take advantage of. I think that it might be of some benefit to spend a little time studying some of what he "preaches". Not saying you can't still do some of what you want with the farming.... no one said you have to do it all his way or no way. But it sounds like you are fairly disciplined, so ...... </p><p>Just thought I would throw that out there.</p></blockquote><p></p>
[QUOTE="farmerjan, post: 1607373, member: 25884"] One other thing I wanted to comment on. You said that at 4% interest, you have been told to just keep making the payments, not pay it off. And that you didn't want to take it out of your savings to pay it off. Not to be nosy, but what is your savings paying you? I have PART of my retirement account money in a guaranteed return account at 2.5% but it is liquid so I can get at it if I need it. The rest is in higher risk, and usually higher return, but at my age, I don't want to carry a big risk because there aren't the years to "come back" if we have another drop like in 2008/2009.... I lost half of my small retirement and when I made it back, I moved a bunch of it to a safer account. A regular savings account is less than 1% ??? If I had debt that was costing me 4% and I was only earning 2%, then I am losing money. I would pay off the debt, then I wouldn't be paying any out and even at a very modest interest, I would be gaining a little. You are looking at "losing money" in a small return account against inflation, but it is still better than paying out a 4% interest rate. You could take money out of your savings, pay off/down on that debt and the money saved from the initial monthly payment could be socked back into the place. Equity ...... I don't think he has all the answers..... But have you ever read anything by Dave Ramsey? He is big on not having any debt, except a mortgage, and then how to invest to be "rich" and there are all kinds of tax shelters to be able to take advantage of. I think that it might be of some benefit to spend a little time studying some of what he "preaches". Not saying you can't still do some of what you want with the farming.... no one said you have to do it all his way or no way. But it sounds like you are fairly disciplined, so ...... Just thought I would throw that out there. [/QUOTE]
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