Is there any incentive to pay off your tractor early?

[Garandman]

I just called Kubota Credit for a payoff amount and the number they gave me seems to be the total of existing payments times the monthly payment. This makes sense in that it is zero percent, but my calculation shows $305 per year for insurance.

I would have expected an amount roughly $915 less after cancelling insurance. Have to call them back tomorrow.

 

[prichard]

I think KTAC refunds that.

 

[MossRoad]

Other way around. Roth is taxed now not in retirement. Traditional is for expecting lower tax rate later.

I think he's saying I'm getting taxed at a higher rate today while I'm employed and earning more per year VS what I will be taxed on when I'm retired and earning less from my 401K withdrawals, so I'll be getting taxed less...

Well, first off, I'm pretty sure we will be making more money retired than now. And second, does anyone think we'll be paying the same tax rate in 10 years? :confused3:

 

[David97]

I don't normally keep loans for their entire length of time even if it's only a year less but i have never had a zero % loan.

 

[adventure bob]

My plan is to be debt free and retire without working. My income will drop to my military pension and draws from my 401K. Significantly less than I make today. I think someone said it already, the amount of money you need to make if you have no debt is really surprising.
Based on that my future tax bracket will be less than today.

 

[Garandman]

Called Kubota Credit back to find out what the deal was.

Nearly three years of insurance is only $485, or only about $15 per month. That seems well worth it, especially with the free money.

 

[check]

I think he's saying I'm getting taxed at a higher rate today while I'm employed and earning more per year VS what I will be taxed on when I'm retired and earning less from my 401K withdrawals, so I'll be getting taxed less... Well, first off, I'm pretty sure we will be making more money retired than now. And second, does anyone think we'll be paying the same tax rate in 10 years? :confused3:

Yup. This retirement savings business is nothing but a big scam. Sure, you get to deduct your RRSP contribution now, but if your retirement income is past a certain tax bracket, you'll be paying the same out of tax anyway after you retire and start to collect your pension. And it doesn't take much to get up to that maximum marginal tax bracket! I gave up on those retirement savings plans long ago, and the only one I have is the one that my employer forces me to contribute to. And in terms of growth, I have NOT been impressed with the investment decisions that the pension trustees have been making!

 

[dickfoster]

Yup. This retirement savings business is nothing but a big scam. Sure, you get to deduct your RRSP contribution now, but if your retirement income is past a certain tax bracket, you'll be paying the same out of tax anyway after you retire and start to collect your pension. And it doesn't take much to get up to that maximum marginal tax bracket! I gave up on those retirement savings plans long ago, and the only one I have is the one that my employer forces me to contribute to. And in terms of growth, I have NOT been impressed with the investment decisions that the pension trustees have been making!

How are you forced to contribute to a retirement plan? Sounds like socialistic nonsense to me. Still it isn't a bad idea to invest but you can always invest on your own and you'll probably be better off since you have only your own interests at heart instead of god only knows what someone else is interested in and what their motivations are since it's not their money that's being put at risk.

 

[MossRoad]

How are you forced to contribute to a retirement plan? Sounds like socialistic nonsense to me. Still it isn't a bad idea to invest but you can always invest on your own and you'll probably be better off since you have only your own interests at heart instead of god only knows what someone else is interested in and what their motivations are since it's not their money that's being put at risk.

By default, all new hires at our company are enrolled in the 401K. You have to opt out of it if you want.

 

[number two]

In the Roth IRA/traditional IRA comparison,I'm quite sure with the Roth you are not required to make the required minimum distribution at age 70 1/2,or any other age for that matter.

That could be very helpful in not having to take more income than you need/want to in retirement.

I'm thinking of converting some of my traditional IRA's to Roth as money or room for a little income on the front page of the 1040 becomes available.

Good Luck!