Is there any incentive to pay off your tractor early?

[dickfoster]

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

401Ks are another story and are usually a pretty good deal as the employer typically at least matches what you put into your kitty. It's kinda hard to beat that kind of a return in the investment world. Let me see now, the worst I can do is double my money. There's not much to think about so yeah sign me up and I did every chance I got and stuffed in every penny I could scrape up until I hit the limit.

 

[Musdalen]

401Ks are another story and are usually a pretty good deal as the employer typically at least matches what you put into your kitty. It's kinda hard to beat that kind of a return in the investment world. Let me see now, the worst I can do is double my money. There's not much to think about so yeah sign me up and I did every chance I got and stuffed in every penny I could scrape up until I hit the limit.

Smart guy. I do the same.

 

[D2Cat]

Oh, but the borrower is servant to the lender. No matter who or what you owe, when you owe someone you're someone's slave.

And Roth's are suppose to be beneficial to pay the taxes now and let them grow tax free. Just hope the rules don't change, just as you get to the point you need the funds, and all of a sudden the Gov't adds a tax to what you thought was already paid!

 

[dragoneggs]

Insurance is over priced. Until you need it. I had a $193,000 claim 7 years ago. All of the insurance premiums I've paid to date, and those that I might pay over the next 20 years do not equal that amount.

401Ks are another story and are usually a pretty good deal as the employer typically at least matches what you put into your kitty. It's kinda hard to beat that kind of a return in the investment world. Let me see now, the worst I can do is double my money. There's not much to think about so yeah sign me up and I did every chance I got and stuffed in every penny I could scrape up until I hit the limit.

Typically employers match up to a prescribed percentage. Putting in at least that amount is a no brainer. I put in the max they will allow me as I know my income at retirement will be significantly less than prior. Only way to bump up retirement income is to max your pre tax contributions in my mind.

To the OP... I subscribe to the theory of not paying off 0% loans. Value of cash decreases over time so relatively small installments makes sense to me. Interest bearing loans is a whole other discussion and I feel should be avoided if there isn't tax incentive such as home loans that you can benefit from.

 

[MossRoad]

Oh, but the borrower is servant to the lender. No matter who or what you owe, when you owe someone you're someone's slave.

And Roth's are suppose to be beneficial to pay the taxes now and let them grow tax free. Just hope the rules don't change, just as you get to the point you need the funds, and all of a sudden the Gov't adds a tax to what you thought was already paid!

Better to have a taxed nest egg than no nest egg at all.

 

[Cat_Driver]

I always want to keep money and work it rather than pay things off. I either buy things for my company with that cash and make more money on what I buy, or leave wit in the stock market, where I can make a lot more than the interest costs me on the equipment.

Almost every day since Trump was elected I'm making $500- $1000 a day before I finish my coffee in the morning. Even though I have the cash I always get cheap loans on equipment and keep working my cash, pus I have new equipment AND cash.

Just milking crags list you can make more than the interest on most loans. I bought a 10 year old Class A motorhome with only 15K miles on her, for $18K. I washed her, waxed her cleaned her up, drove it for a year of vacations and sold her for 25K. I couldn't have done that if I paid off my tractor with the money I used.

No my thoughts are ALWAYS let your money work for you, and chances are you can make more than leaving it in a bank or what you'd pay in interest.

 

[check]

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.

Don't get the wrong idea, Dick. My employer puts in MORE than I do, and they invest the pension fund and generally make good money. (So much so that my pension will be MORE than my salary if I wait until the age of 12 to retire ( which I won't, as I have vowed to go out "feet first".). So I'm not sure where your term "socialistic nonsense" comes from.

 

[MossRoad]

Don't get the wrong idea, Dick. My employer puts in MORE than I do, and they invest the pension fund and generally make good money. (So much so that my pension will be MORE than my salary if I wait until the age of 12 to retire ( which I won't, as I have vowed to go out "feet first".). So I'm not sure where your term "socialistic nonsense" comes from.

That's pretty young....

 

[daugen]

That's pretty young....

I thought it was like an odometer, Check had "rolled over"....

 

[Clay45]

Your're not "debt free" until you are free of All debt. That should be incentive enough. If your past choices have left you with more debt today than you would have had if you'd made different choices will not change a thing. Paying off all debt will. And lenders know it.