Reply to Walk away from $1 million a year?

Forum Index » Money and Finances

Reply to "Walk away from $1 million a year?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]OP here.  I should add that all the kids are out of college and married.  We have a mortgage of about 2k a month and no other debt.  [/quote]

I mean, I'd probably pay off the house. I know its not necessary but just a mental thing before quitting work. But obviously you can easily do what you are proposing. [/quote]

[b]I'd work one more year, pay off the house, get everything in order, then walk away.[/b]  [/quote]

Another miserable year, another million dollars that's taxed to death and ends up being a lot less.  [b]Then you pay off the house and have no mortgage but your overall net worth doesn't change.[/b]  You just have more of it invested in your house and not generating any income.  So your portfolio generates less money but you have no mortgage.

Isn't that six of one, half dozen of the other, except you've lost another year?    [/quote]

[b]You do not understand net worth, my friend.[/b][/quote]

Sure I do.  It's gross assets minus liabilities.  If you have, say, $5 million in stocks/bonds and a house worth $1 million but with a $500k mortgage, then your net worth is $5.5 million.  If you take $500k from the stocks/bonds and pay off the mortgage you now have $4.5 million in stocks/bonds and $1 million in your house -- $5.5 million again.  No difference.   [/quote]

No, because he's working another year and paying off the house with that money.  You said "six of one, half a dozen of the other, except you've lost another year" which indicates that you do not realize that working another year and making another million dollars, whether it goes into stocks or to pay off debt, will in fact improve OP's net worth.  There is a difference.[/quote]

NP here.  PP was quite clear, work another year, then pay off the house, but your net worth does not change.  Yes, that's correct, it won't change (other factors not withstanding) whether you pay off your house after that extra year or not.  If you compare it to a year ago, yes, of course it will change, you will have worked another year and you will have likely received other non wage income but PP (who totally understands net worth and you're all just being dicks about it) wasn't talking about that he/she was talking about whether to then pay off house.[/quote]

No, you're reading incorrectly.  PP was saying that working the extra year wouldn't change OP's net worth -- that's why he said "[b]Isn't that six of one, half dozen of the other, except you've lost another year[/b]?"  The implication is that OP's net worth would be the same either way, and the only difference is the lost time.  That's incorrect, and demonstrates that PP does not understand net worth.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics