Author Topic: Defeat the Net Debt  (Read 57188 times)

frugalecon

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Re: Defeat the Net Debt
« Reply #150 on: September 06, 2019, 05:26:12 PM »
Total Debt: $204,830
Total Taxable Assets: $158,351

Net Debt:

[9.06.2019] ($46,479)
[8.03.2019] ($47,514)
[7.02.2019] ($49,990)
[6.01.2019] ($53,091)
[5.03.2019] ($57,000)
[4.03.2019] ($58,280)
[3.02.2019] ($62,770)
[2.02.2019] ($68,065)
[1.03.2019] ($76,999)
[12.03.2018] ($80,591)
[11.30.2018] ($83,584)
[11.01.2018] ($90,537)
[09.03.2018] ($96,664)
[07.28.2018] ($103,664)
« Last Edit: September 10, 2019, 02:40:53 PM by frugalecon »

frugalecon

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Re: Defeat the Net Debt
« Reply #151 on: September 06, 2019, 05:28:56 PM »
As the OP of this thread, it has been great seeing other people’s journeys. I know that some think this thread is boring, but I have always thought both that “slow and steady wins the race,” and that “there is more than one way to skin a cat.”

ItsALongStory

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Re: Defeat the Net Debt
« Reply #152 on: September 07, 2019, 06:24:25 AM »
Thanks for the clarification, in that case we are way way behind defeating the net debt.

Mortgage: $161k @ 3.625% (no PMI)
2nd mortgage: $49.5k @ 4.89%
Car loan: $18.5k @ 0%

Taxable: $14k

Total: $(215k)

At my current rate we are paying off $1300 in principal each month and saving about $1400 a month on the taxable side so about a $2700 swing each month. I guess without any market impact that means 79.63 months. I am eligible for a bonus and intend to put that towards the 2nd mortgage this year and next. My wife isn't in on the FIRE idea but our joint account is used to pay all 3 of these debts, I am solely contributing to my taxable account.
Maxed out my IRA for 2019 today so that dropped my taxable account to just below 10k but it's for a solid reason.

Sent from my Pixel 2 XL using Tapatalk

Had the wrong balance for our mortgage so we took a step back in debt as well as in taxable due to filling Roth for 2019.

Mortgage: $164.7k @ 3.625% (no PMI)
2nd mortgage: $49.3k @ 4.89%
Car loan: $15.5k @ 0%

Taxable: $11k

Total: $(218.5k)


Sent from my Pixel 2 XL using Tapatalk

Mortgage: $164037 @ 3.625% (no PMI)
2nd mortgage: $48659 @ 4.89%
Car loan: $14725 @ 0%

Taxable: $17634

Total: $($209787)

Almost a 10k drop in 2 months, I'll take that. Can't wait for my bonus (post 401k) that will go squarely towards the 2nd mortgage. Hoping for a nice chunk there.
Got a sweet raise that takes effect next month and should be a great sign for my bonus too. Excited to bump up my taxable savings starting June.

One thing I could also consider is post-tax Roth with conversions as time goes on. My plan offers it but not sure of the benefits if that vs brokerage. Time to do some more research.

Edit: seems like after-tax 401k with conversion is a no brainer so I will go that route. I actually dropped my standard pre-tax percentage so it won't get filled up until closer to the end of the year (it's irrelevant for our match) in favor of a higher after-tax 401k deduction.

Sent from my Pixel 2 XL using Tapatalk
Bonus gets paid this month so u switched to high pretax 401k, will move back to lower pre and high post tax 401k starting next month. Next year I'll plan it a little more aggressively.

As far as this thread is concerned I gave not made a ton of progress unfortunately.

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ItsALongStory

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Re: Defeat the Net Debt
« Reply #153 on: September 07, 2019, 06:34:39 AM »
Mortgage: $162583 @ 3.625% (no PMI)
2nd mortgage: $46994 @ 4.89%
Car loan: $13169 @ 0%

Taxable: $23189

Total: $(199557)

Under $200k!

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Arbitrage

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Re: Defeat the Net Debt
« Reply #154 on: September 10, 2019, 10:24:04 AM »

Mortgage: $(385.8k)
Student Loan: $(31.3k)
Taxable: $168.4k

Net: $(248.7k)


Jan 2019: ($290.2k)
Apr 2019: ($278.4k)
Sep 2019: ($248.7k)

Kierun

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Re: Defeat the Net Debt
« Reply #155 on: September 10, 2019, 12:05:22 PM »
3/19 - ~(632k)
4/19 - ~(626k)
5/19 - ~(624k)
6/19 - ~(599k) (added in DW's account)
7/19 - ~(593k)
8/19
Mortgage: ~385k
Mortgage: ~354k

Taxable: ~145k

Net: ~(594k)
Mortgage: ~383k
Mortgage: ~353k

Taxable: ~163k

Net: ~(573k)

Bird In Hand

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Re: Defeat the Net Debt
« Reply #156 on: September 11, 2019, 06:42:36 AM »
Mortgage: ~$58k
After-tax: ~$61k
Net: $3k

Net Debt defeated, I guess?

Mortgage: ~$51k
After-tax: ~$48k
Net: -$3k

Mortgage: ~$29k
Car:: ~$20k
After-tax: ~$36k
Net: -$13k

We finally had to replace our old rust-bucket car when it developed some expensive problems.  Bought a new one </ducks facepunch> and financed at 2.9% for 7 years, which we're not in a hurry to pay off.  We also used some of our dry powder to fortify tax-advantaged accounts and take care of some home maintenance items.

Our after-tax accounts should grow quickly once the mortgage is gone sometime next year.

An Unassuming Moose

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Re: Defeat the Net Debt
« Reply #157 on: September 11, 2019, 02:59:51 PM »
Oh boy, my particular situation was made for a challenge like this one! All of my debt was fortunately incurred to purchase income producing assets, but there's a whole lot of it. My FI date and my debt payoff date are basically one and the same. My current assets will allow me to technically reach FI far before paying off the last of my debt, but I am imposing upon myself a condition of being completely debt-free before I declare myself truly free. So here it goes:

As of Sept 11, 2019:
Debts:
Interest-Only Loans:
   - $2500 @ Prime
   - $13500 @ Prime
   - $108500 @ Prime+0.3
   - $152200 @ Prime
All these are with the same creditor except for the prime + 0.3 one, and were incurred either to purchase dividend stocks, or are the result of transferring other debts to a lower interest option. And yes, I have a very generous creditor who has a lot of faith in me! I could combine these amounts into one, technically, but it's more fun to see the smaller numbers dwindle, and I use them as short term goals. I do put all my payments towards a single loan, then move on to the next though, so interest does build up on the other ones.

Additional Interest-Only Loans:
   - $25200 @ Prime
   - $51600 @ Prime
These two were incurred to invest in a startup. Risky? Yes, very. Am I willing to lose it all? Absolutely. This particular project is priceless to me, the results could change an entire industry and help society immensely. They could also not pan out. I'm willing to gamble on it.

Interest-Only Mortgages:
   - $255600 @ Prime
This is also set up as an interest-only loan rather than a traditional mortgage. The house was a shipwreck when I got it (HCOL, but I got a good deal on it), and I am in the process of fixing it up. Should be ready to rent out parts of it by the end of this year.
   - $60500 @ Prime
This is currently sitting in a high interest savings account as a future down-payment, as I have my eye on another house. If I bought it, I could double my income from the first house by renting out the unit I live in, and I could rent out part of this second house to live for free. Plus it's a beautiful house in one of the best neighborhoods in the city. I would want to live in a house like this post-FI. Just need the current owner (who's a friend of mine) to sell, which I think may happen before the end of the year, with any luck. He inherited it and it's currently vacant, just has a lot of memories, which I understand.

Taxable Accounts:
   - $207000 in Blue chip dividend stock
The income from dividends pay the interest of the loan that bought the shares, plus a bit, which is why I signed up in the first place. Worked better a few years back when interest rates were lower, but I'm still making money off of them, so no incentive to change.
   - $109500 in index ETFs
Combined with my tax sheltered accounts, these ETFs will form the backbone of my retirement. By the time I grind through the debts, I'll be able to live off only them, assuming a reasonable growth rate.

So totals:
$316500 in taxable assets - $669600 in debts = $353100
Let the games begin!
« Last Edit: September 11, 2019, 03:02:26 PM by Unassuming Moose »

robartsd

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Re: Defeat the Net Debt
« Reply #158 on: September 13, 2019, 08:22:47 AM »
So totals:
$316500 in taxable assets - $669600 in debts = $353100
Let the games begin!
That's a crazy amount of debt (but at good rates) how much of it is callable?

An Unassuming Moose

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Re: Defeat the Net Debt
« Reply #159 on: September 13, 2019, 05:10:09 PM »
So totals:
$316500 in taxable assets - $669600 in debts = $353100
Let the games begin!
That's a crazy amount of debt (but at good rates) how much of it is callable?

The $108,000 is in a margin account, which theoretically could be called if the markets dip enough, but I was conservative in using my margin, so they'd have to go down 50% or so before I lose any sleep over it.
The rest is with a private investor who considers it the fixed income portion of their portfolio. I'm basically a bond issue for them. They're in no rush to get it back, but if that were to change I could always sell the assets and reimburse the loan.
This is probably my second highest risk, after interest rates rising. I have enough income to weather about 2.5% increase, or will once my house is being rented, without sweating any. Beyond that I'll have to get creative, but presumably that high a hike will take a bit of time and I'll see it coming. Plus I expect regular raises at my job, I've been getting them so far, and my company is doing well. Not counting on them in my calculations, but they will increase my breathing room.

achvfi

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Re: Defeat the Net Debt
« Reply #160 on: October 01, 2019, 11:25:53 AM »
Starting Mortgage  = 112900
Starting Brokerage = 3100
Starting EF            = 12800


Month     ->  Mortgage - Taxable - EF  = NET
2019 Jan -> 112900 - 3100 - 12800 = (97000)
2019 Feb -> 111616 - 3500 - 13134 = (94982)
2019 Mar -> 111616 - 16700 - 13754 = (81162) ---> I just realized I have more in taxable.
2019 Apr -> 110900 - 18100 - 14400 = (78400)
2019 May -> 110300 - 18500 - 15000 = (76800)
2019 Jun ->  109600 - 19700 - 15670 = (74230)
2019 Jul  ->  109000 -  20972 - 16300 = (71728) ---> Target goal in 3 years or less.
2019 Aug ->  108350 -  21758 - 16958 = (69634)
2019 Sep ->  107692 -  17100 - 17600 =  (72992) ---> Going backwards this month. Had to pay $5000 in taxes

frugalecon

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Re: Defeat the Net Debt
« Reply #161 on: October 07, 2019, 03:46:16 AM »
Total Debt: $201,644
Total Taxable Assets: $158,352

Net Debt:

[10.07.2019] ($43,292)
[9.06.2019] ($46,479)
[8.03.2019] ($47,514)
[7.02.2019] ($49,990)
[6.01.2019] ($53,091)
[5.03.2019] ($57,000)
[4.03.2019] ($58,280)
[3.02.2019] ($62,770)
[2.02.2019] ($68,065)
[1.03.2019] ($76,999)
[12.03.2018] ($80,591)
[11.30.2018] ($83,584)
[11.01.2018] ($90,537)
[09.03.2018] ($96,664)
[07.28.2018] ($103,664)

Kierun

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Re: Defeat the Net Debt
« Reply #162 on: October 08, 2019, 02:58:53 PM »
4/19 - ~(626k)
5/19 - ~(624k)
6/19 - ~(599k) (added in DW's account)
7/19 - ~(593k)
8/19 - ~(594k)
9/19
Mortgage: ~383k
Mortgage: ~353k

Taxable: ~163k

Net: ~(573k)
Mortgage: ~381k
Mortgage: ~353k

Taxable: ~162k

Net: ~(572k)

ItsALongStory

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Re: Defeat the Net Debt
« Reply #163 on: October 11, 2019, 05:51:25 PM »
Quote
Mortgage: $164037 @ 3.625% (no PMI)
2nd mortgage: $48659 @ 4.89%
Car loan: $14725 @ 0%

Taxable: $17634

Total: $($209787)

4 months later, cheating somewhat by including HSA.

Mortgage: $162217 @ 3.625% (no PMI)
2nd mortgage: $46668 @ 4.89%
Car loan: $13169 @ 0%

Taxable #1: $31086
Taxable #2: $6500
HSA: $12800

Total: $(171668)
« Last Edit: October 11, 2019, 06:00:16 PM by ItsALongStory »

An Unassuming Moose

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Re: Defeat the Net Debt
« Reply #164 on: October 17, 2019, 10:43:04 AM »
October update:
$2500 > Zero
$13500 > $12000
$25200 > $25300
$51600 > $51800
$60500 > $60700
$108500 > $108500
$152200 > $152800
$255600 > $256600

$207000 > $215800
$143800 > $145300

I noticed this month that last month I had stated my ETF in USD when everything else is stated in CAD. I converted properly this month, so all numbers match up now.

Totals $361100 - $667700 = $306600

Sept 2019: $318800
Oct 2019: $306600

I'm very exposed to market fluctuations, hence the large-ish swings in numbers month-to-month. The general trend is what matter here.

talltexan

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Re: Defeat the Net Debt
« Reply #165 on: October 24, 2019, 08:27:52 AM »
You acknowledge how exposed to the market you are.

Are you putting 100% of available cash flow into building up the asset side? Is reducing that % something you'd consider?

I also read the Financial Samaurai blog, and--he is much more risk averse--he suggests multiplying your effective interest rate by 10. So if your debts are student loans that are charging 5% interest, put 50% of your cash flow directly against those. Should smooth out your progress.

And, yes, it may make things take longer.

An Unassuming Moose

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Re: Defeat the Net Debt
« Reply #166 on: October 29, 2019, 10:58:23 AM »
You acknowledge how exposed to the market you are.

Are you putting 100% of available cash flow into building up the asset side? Is reducing that % something you'd consider?

I also read the Financial Samaurai blog, and--he is much more risk averse--he suggests multiplying your effective interest rate by 10. So if your debts are student loans that are charging 5% interest, put 50% of your cash flow directly against those. Should smooth out your progress.

And, yes, it may make things take longer.
Good considerations for sure! I'm currently putting everything into debt repayment. 100% of savings, or 79% of after tax income. I'm siphoning off just enough off of that to fill my taxable accounts. In the long run, I expect it to all work out such that once the debts are paid I won't have to invest any more, since my current assets will have grown to FI proportions. It's a reverse mustachian move. Borrow heavily, use it to invest up front, then pay interest and principal for ten years rather than saving for ten years and buying as cash becomes available. Provided interest on debt remains below investment growth, which I expect it will for at least the first few years, I come out ahead when all is said and done.

RWD

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Re: Defeat the Net Debt
« Reply #167 on: October 29, 2019, 11:17:03 AM »
I also read the Financial Samaurai blog, and--he is much more risk averse--he suggests multiplying your effective interest rate by 10. So if your debts are student loans that are charging 5% interest, put 50% of your cash flow directly against those. Should smooth out your progress.

And, yes, it may make things take longer.

He also thinks you need an income of $300k in a HCOL area for maximum happiness. With that kind of income you'll win no matter how efficiently you balance paying down debt vs investing. Sorry, but I am not going to direct ~30% (using weighted average) of our cash flow towards our 1.69% car loan and 3.125% mortgage. I can see following roughly a 50/50 strategy near the expected break even point but as soon as you get a percentage point away from that it should generally be all or nothing.
« Last Edit: November 02, 2019, 08:16:07 AM by RWD »

frugalecon

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Re: Defeat the Net Debt
« Reply #168 on: November 02, 2019, 07:08:21 AM »
Total Debt: $198,452
Total Taxable Assets: $160,712

Net Debt:

[11.02.2019] ($37,740)
[10.07.2019] ($43,292)
[9.06.2019] ($46,479)
[8.03.2019] ($47,514)
[7.02.2019] ($49,990)
[6.01.2019] ($53,091)
[5.03.2019] ($57,000)
[4.03.2019] ($58,280)
[3.02.2019] ($62,770)
[2.02.2019] ($68,065)
[1.03.2019] ($76,999)
[12.03.2018] ($80,591)
[11.30.2018] ($83,584)
[11.01.2018] ($90,537)
[09.03.2018] ($96,664)
[07.28.2018] ($103,664)

ItsALongStory

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Re: Defeat the Net Debt
« Reply #169 on: November 02, 2019, 10:19:58 AM »
Quote
Mortgage: $164037 @ 3.625% (no PMI)
2nd mortgage: $48659 @ 4.89%
Car loan: $14725 @ 0%

Taxable: $17634

Total: $($209787)

4 months later, cheating somewhat by including HSA.

Mortgage: $162217 @ 3.625% (no PMI)
2nd mortgage: $46668 @ 4.89%
Car loan: $13169 @ 0%

Taxable #1: $31086
Taxable #2: $6500
HSA: $12800

Total: $(171668)

Mortgage: $161817 @ 3.625% (no PMI)
2nd mortgage: $46668 @ 4.89%
Car loan: $12388 @ 0%

Taxable #1: $32203
Taxable #2: $6792
HSA: $13715

Total: $(168163)

Slow'n steady so I think I may just settle for quarterly updates here.

achvfi

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Re: Defeat the Net Debt
« Reply #170 on: November 02, 2019, 03:41:08 PM »
Starting Mortgage  = 112900
Starting Brokerage = 3100
Starting EF            = 12800


Month     ->  Mortgage - Taxable - EF  = NET
2019 Jan -> 112900 - 3100 - 12800 = (97000)
2019 Feb -> 111616 - 3500 - 13134 = (94982)
2019 Mar -> 111616 - 16700 - 13754 = (81162) ---> I just realized I have more in taxable.
2019 Apr -> 110900 - 18100 - 14400 = (78400)
2019 May -> 110300 - 18500 - 15000 = (76800)
2019 Jun ->  109600 - 19700 - 15670 = (74230)
2019 Jul  ->  109000 -  20972 - 16300 = (71728) ---> Target goal in 3 years or less.
2019 Aug ->  108350 -  21758 - 16958 = (69634)
2019 Sep ->  107692 -  17100 - 17600 =  (72992) ---> Going backwards this month. Had to pay $5000 in taxes
2019 Oct  -> 106300 - 9100  -  18200 = (79000) ---> Backward journey continues.

talltexan

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Re: Defeat the Net Debt
« Reply #171 on: November 08, 2019, 06:31:48 AM »
why did your taxable drop so much?

Dicey

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Re: Defeat the Net Debt
« Reply #172 on: November 08, 2019, 07:40:28 AM »
@achvfi, why did your taxable drop so much?
FTFY, 'cuz I want to know, too.

Kierun

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Re: Defeat the Net Debt
« Reply #173 on: November 08, 2019, 08:06:55 PM »
5/19 - ~(624k)
6/19 - ~(599k) (added in DW's account)
7/19 - ~(593k)
8/19 - ~(594k)
9/19 - ~(573k)
10/19
Mortgage: ~381k
Mortgage: ~353k

Taxable: ~162k

Net: ~(572k)
Mortgage: ~380k
Mortgage: ~352k

Taxable: ~169k

Net: ~(563k)

achvfi

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Re: Defeat the Net Debt
« Reply #174 on: November 08, 2019, 08:52:39 PM »
@achvfi, why did your taxable drop so much?
FTFY, 'cuz I want to know, too.

Hello @Dicey and @talltexan. I had some stock vest and I didn't count taxes on it until now and then spent all stock proceeds to pay lots of expenses came due in prep for upcoming baby 2 and other big ticket items like Daycare-mortgage bill till year end, travel for next year so on.

and it gets worse. dan dan da daaaa.....

We indulged in a new used car and took a loan to finance that. So next month our backward slide continues. Thats my compromise with SO, she is in nesting mode. :)

talltexan

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Re: Defeat the Net Debt
« Reply #175 on: November 12, 2019, 08:22:27 AM »
Yeah, the second kid needing day care period is rough.

I remember it basically feel like we were barely treading water.

An Unassuming Moose

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Re: Defeat the Net Debt
« Reply #176 on: November 20, 2019, 03:02:32 PM »
November update:
Big changes this month! Due to a bunch of changes in my plan, it seems this year will be my lowest income year for a little bit. I also have a bunch of my salary banked this year because of overtime, so I'm cashing that out in January and getting taxed on the 2020 bill, rather than the 2019, further reducing my taxable income this year. I had a bunch of dividend stock that I knew I'd eventually have to convert to Index ETF's, and after much calculating, plotting and scheming, I decided to take the tax hit now and use it to knock down debt. Net result: no change in my net worth, an increase of about $16k on my 2019 taxable income (but capital gains, which are taxed at 50% of the amount, so $8k, really), a small reduction in income from selling assets that were producing more in returns than the interest on their loans, and a whole lot more cash flow from not using my salary to pay interest. I have plans for that additional cash flow, but more on that later.

In other news, launching a $100k cheque at a chunk of debt is extremely satisfying, even if it doesn't change the final number that much.

$12000 > Zero
$25300 > Zero
$51800 > Zero
$60700 > $38400
$108500 > Zero
$152800 > $153300
$256600 > $257500

$215800 > Zero
$145300 > $152900

Totals $152900 - $449200 = $296300

Simpler. Better. Faster. Stronger.

Sept 2019: $318800
Oct 2019: $306600
Nov 2019: $296300

achvfi

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Re: Defeat the Net Debt
« Reply #177 on: November 29, 2019, 07:15:49 PM »
Starting Mortgage  = 112900
Starting Brokerage = 3100
Starting EF            = 12800


Month     ->  Mortgage - Taxable - EF  = NET
2019 Jan -> 112900 - 3100 - 12800 = (97000)
2019 Feb -> 111616 - 3500 - 13134 = (94982)
2019 Mar -> 111616 - 16700 - 13754 = (81162) ---> I just realized I have more in taxable.
2019 Apr -> 110900 - 18100 - 14400 = (78400)
2019 May -> 110300 - 18500 - 15000 = (76800)
2019 Jun ->  109600 - 19700 - 15670 = (74230)
2019 Jul  ->  109000 -  20972 - 16300 = (71728) ---> Target goal in 3 years or less.
2019 Aug ->  108350 -  21758 - 16958 = (69634)
2019 Sep ->  107692 -  17100 - 17600 =  (72992) ---> Going backwards this month. Had to pay $5000 in taxes
2019 Oct  -> 106300 - 9100  -  18200 = (79000) ---> Backward journey continues.

Month     ->  Mortgage + AutoLoan - Taxable - EF  = NET

2019 Nov -> 105700 + 27500 - 9000 - 18900 = (105300) ---> Took on auto loan.

HBFIRE

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Re: Defeat the Net Debt
« Reply #178 on: December 01, 2019, 06:43:26 PM »
Fun goal.  I feel it's unfair for those of us without a mortgage or any other debt (renters).  I do plan to get a new mortgage within the next 2 years, perhaps my goal should be against that future debt.  Average mortgage for this area will approach 1M.  While we are FI for our current living costs with renting, I've decided to not purchase a home here until we are FI including the new mortgage for this area. Our business continues to thrive, so I am optimistically hoping to hit FI with high mortgage sometime in 2020. The past 5 years have been surreal, sometime I'll journal it when it's all over.  Taxable assets are difficult to estimate, as I have a lot tied up in my business for cash flow purposes, so I'll just go with a super conservative estimate with actual Vanguard brokerage investments + emergency fund.

Current Taxable: ~ 440 K
No other debts
Projected mortgage: 1M



Just hit 600 K in taxable (non-retirement investments + Cash).  Started new business so I'm thinking we should be able to hit the 1M taxable goal in 2020!

frugalecon

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Re: Defeat the Net Debt
« Reply #179 on: December 02, 2019, 04:22:19 AM »
Total Debt: $195,251
Total Taxable Assets: $162,336

Net Debt:

[12.02.2019] ($33,885)
[11.02.2019] ($37,740)
[10.07.2019] ($43,292)
[9.06.2019] ($46,479)
[8.03.2019] ($47,514)
[7.02.2019] ($49,990)
[6.01.2019] ($53,091)
[5.03.2019] ($57,000)
[4.03.2019] ($58,280)
[3.02.2019] ($62,770)
[2.02.2019] ($68,065)
[1.03.2019] ($76,999)
[12.03.2018] ($80,591)
[11.30.2018] ($83,584)
[11.01.2018] ($90,537)
[09.03.2018] ($96,664)
[07.28.2018] ($103,664)

Kierun

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Re: Defeat the Net Debt
« Reply #180 on: December 10, 2019, 10:29:22 AM »
6/19 - ~(599k) (added in DW's account)
7/19 - ~(593k)
8/19 - ~(594k)
9/19 - ~(573k)
10/19 - ~(572k)
11/19
Mortgage: ~380k
Mortgage: ~352k

Taxable: ~169k

Net: ~(563k)
12/19
Mortgage: ~378k
Mortgage: ~352k

Taxable: ~172k

Net: ~(558k)

frugalecon

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Re: Defeat the Net Debt
« Reply #181 on: December 22, 2019, 09:53:02 AM »
Total Debt: $195,251
Total Taxable Assets: $154426

Net Debt:

[12.22.2019] ($40,825) (Alas, had to withdraw $$ from taxable to pay for some home repairs)
[12.02.2019] ($33,885)
[11.02.2019] ($37,740)
[10.07.2019] ($43,292)
[9.06.2019] ($46,479)
[8.03.2019] ($47,514)
[7.02.2019] ($49,990)
[6.01.2019] ($53,091)
[5.03.2019] ($57,000)
[4.03.2019] ($58,280)
[3.02.2019] ($62,770)
[2.02.2019] ($68,065)
[1.03.2019] ($76,999)
[12.03.2018] ($80,591)
[11.30.2018] ($83,584)
[11.01.2018] ($90,537)
[09.03.2018] ($96,664)
[07.28.2018] ($103,664)

ItsALongStory

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Re: Defeat the Net Debt
« Reply #182 on: December 23, 2019, 07:38:10 AM »
Quote
June 2019:

Mortgage: $164037 @ 3.625% (no PMI)
2nd mortgage: $48659 @ 4.89%
Car loan: $14725 @ 0%

Taxable: $17634

Total: $($209787)

December 2019:

Mortgage: $161481 @ 3.625% (no PMI)
2nd mortgage: $45993 @ 4.89%
Car loan: $11614 @ 0%

Taxable Fid: $36111
Taxable Van: $7145

Total: $($175832)

Maverick1

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Re: Defeat the Net Debt
« Reply #183 on: December 23, 2019, 10:33:04 AM »
All figures in Canadian dollars:

Stock market $350k
Corporate account $35k
HELOC - $(300)k - interest is deductible as the entire amount was borrowed to make above stock market investments
Mortgage - $(15)k - will be paying off next month
Vehicle loan @ 0% - $(20k)
Net - $50,000

In Canada we cannot deduct mortgage interest on our tax returns.  Our strategy has been to pay down the mortgage aggressively, then reborrow the funds on a HELOC to make stock market investments.  The profits on the stock market investments have been used to pay down the mortgage, which increases the limit on the HELOC, and are then reborrowed to make more stock market investments.  I have $85k room on the HELOC, but $300k is the most I'm comfortable borrowing at this time.

ItsALongStory

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Re: Defeat the Net Debt
« Reply #184 on: December 24, 2019, 11:00:24 AM »
All figures in Canadian dollars:

Stock market $350k
Corporate account $35k
HELOC - $(300)k - interest is deductible as the entire amount was borrowed to make above stock market investments
Mortgage - $(15)k - will be paying off next month
Vehicle loan @ 0% - $(20k)
Net - $50,000

In Canada we cannot deduct mortgage interest on our tax returns.  Our strategy has been to pay down the mortgage aggressively, then reborrow the funds on a HELOC to make stock market investments.  The profits on the stock market investments have been used to pay down the mortgage, which increases the limit on the HELOC, and are then reborrowed to make more stock market investments.  I have $85k room on the HELOC, but $300k is the most I'm comfortable borrowing at this time.

You have some big cojones.

Arbitrage

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Re: Defeat the Net Debt
« Reply #185 on: December 30, 2019, 08:04:24 AM »
Mortgage: $(381.7k)
Student Loan: $(30.3k)
Taxable: $194.7k

Net: $(217.3k)


Jan 2019: ($290.2k)
Apr 2019: ($278.4k)
Sep 2019: ($248.7k)
Dec 2019: ($217.3k)

frugalecon

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Re: Defeat the Net Debt
« Reply #186 on: January 06, 2020, 04:42:46 AM »
Total Debt: $192,045
Total Taxable Assets: $147,665

Net Debt:

[01.06.2020] ($44,380) (Transferred out of taxable for backdoor Roth)
[12.22.2019] ($40,825) (Alas, had to withdraw $$ from taxable to pay for some home repairs)
[12.02.2019] ($33,885)
[11.02.2019] ($37,740)
[10.07.2019] ($43,292)
[9.06.2019] ($46,479)
[8.03.2019] ($47,514)
[7.02.2019] ($49,990)
[6.01.2019] ($53,091)
[5.03.2019] ($57,000)
[4.03.2019] ($58,280)
[3.02.2019] ($62,770)
[2.02.2019] ($68,065)
[1.03.2019] ($76,999)
[12.03.2018] ($80,591)
[11.30.2018] ($83,584)
[11.01.2018] ($90,537)
[09.03.2018] ($96,664)
[07.28.2018] ($103,664)

Kierun

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Re: Defeat the Net Debt
« Reply #187 on: January 08, 2020, 01:58:08 PM »
7/19 - ~(593k)
8/19 - ~(594k)
9/19 - ~(573k)
10/19 - ~(572k)
11/19 - ~(563k)
12/19
Mortgage: ~378k
Mortgage: ~352k

Taxable: ~172k

Net: ~(558k)
1/20
Mortgage: ~377k
Mortgage: ~351k

Taxable: ~165k

Net: ~(563k)

An Unassuming Moose

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Re: Defeat the Net Debt
« Reply #188 on: January 15, 2020, 01:23:29 PM »
January update:

$38400 > $31900
$153300 > $154300
$257500 > $259000

$152900 > $156000

Totals $156000 - $445200 = $289200



Sept 2019: $318800
Oct 2019: $306600
Nov 2019: $296300
Jan 2020: $289200

Morning Glory

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Re: Defeat the Net Debt
« Reply #189 on: January 26, 2020, 07:37:00 AM »
August 2018
Mortgage: -216,524 (30 yr at 3.75%)
Taxable: 113,056
Net debt equals -103,468

February 2019
Mortgage: -211,575
Taxable: 107,649
Net debt is -103,926

Also February 2019
Mortgage: 210,176
Taxable: 123,907
Net Debt: 86,269

January 2020
Mortgage -202,002
Taxable 132,135
Net Debt 69,867
« Last Edit: January 26, 2020, 07:43:19 AM by Aunt Petunia »

frugalecon

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Re: Defeat the Net Debt
« Reply #190 on: February 01, 2020, 06:05:40 AM »
Total Debt: $188,831
Total Taxable Assets: $149,876

Net Debt:

[02.01.2020] ($38,955)
[01.06.2020] ($44,380) (Transferred out of taxable for backdoor Roth)
[12.22.2019] ($40,825) (Alas, had to withdraw $$ from taxable to pay for some home repairs)
[12.02.2019] ($33,885)
[11.02.2019] ($37,740)
[10.07.2019] ($43,292)
[9.06.2019] ($46,479)
[8.03.2019] ($47,514)
[7.02.2019] ($49,990)
[6.01.2019] ($53,091)
[5.03.2019] ($57,000)
[4.03.2019] ($58,280)
[3.02.2019] ($62,770)
[2.02.2019] ($68,065)
[1.03.2019] ($76,999)
[12.03.2018] ($80,591)
[11.30.2018] ($83,584)
[11.01.2018] ($90,537)
[09.03.2018] ($96,664)
[07.28.2018] ($103,664)
« Last Edit: February 03, 2020, 05:04:08 AM by frugalecon »

Bird In Hand

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Re: Defeat the Net Debt
« Reply #191 on: February 01, 2020, 08:29:33 AM »
Mortgage: ~$29k
Car: ~$20k
After-tax: ~$36k
Net: -$13k

Mortgage: ~$14k
Car: ~$18k
After-tax: ~$43k
Net: $11k

Back in black!  Or...green.  At least for the moment.  We have some hefty expenses coming up, but on the bright side the mortgage will be gone in a couple months.

Simpli-Fi

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Re: Defeat the Net Debt
« Reply #192 on: February 01, 2020, 09:02:16 AM »
Mortgage (rental) 385k
Vanguard brokerage 773k

388k

Looking to Buy a primary home in 2020...good challenge to stay net positive.

ItsALongStory

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Re: Defeat the Net Debt
« Reply #193 on: February 01, 2020, 10:05:24 PM »
Mortgage: ~$29k
Car: ~$20k
After-tax: ~$36k
Net: -$13k

Mortgage: ~$14k
Car: ~$18k
After-tax: ~$43k
Net: $11k

Back in black!  Or...green.  At least for the moment.  We have some hefty expenses coming up, but on the bright side the mortgage will be gone in a couple months.
Looks like you need to figure out how to redirect that mortgage firehose and there are only very few more exciting problems to have.

Monerexia

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Re: Defeat the Net Debt
« Reply #194 on: February 01, 2020, 10:55:53 PM »
PTF!

Bird In Hand

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Re: Defeat the Net Debt
« Reply #195 on: February 02, 2020, 06:40:55 AM »
Looks like you need to figure out how to redirect that mortgage firehose and there are only very few more exciting problems to have.

You got that right! :)

Kierun

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  • Location: HI
Re: Defeat the Net Debt
« Reply #196 on: February 10, 2020, 03:34:36 PM »
8/19 - ~(594k)
9/19 - ~(573k)
10/19 - ~(572k)
11/19 - ~(563k)
12/19 - ~(558k)
1/20
Mortgage: ~377k
Mortgage: ~351k

Taxable: ~165k

Net: ~(563k)
2/20
Mortgage: ~375k
Mortgage: ~351k

Taxable: ~170k

Net: ~(556k)

Bird In Hand

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Re: Defeat the Net Debt
« Reply #197 on: February 11, 2020, 09:21:15 AM »
Mortgage: $0
Car: ~$18k
After-tax: ~$30k
Net: $12k

With only a few months (and $14k) left on the mortgage, we decided to just kill it.  The immediate effect on net worth is nil, but without the mortgage our after-tax accounts should grow pretty quickly.

An Unassuming Moose

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Re: Defeat the Net Debt
« Reply #198 on: February 15, 2020, 10:01:42 AM »
January update:

$31900 > $32000
$154300 > $154800
$259000 > $259900

$156000 > $160100

Totals $160100 - $446700 = $286600

Sept 2019: $318800
Oct 2019: $306600
Nov 2019: $296300
Jan 2020: $289200
Feb 2020: $286600

No debt payments this month, as all funds are being redirected to tax sheltered accounts. The market is being ridiculous though, so still some progress showing.
Also, I'm on the road and my phone doesn't post color. I'll fix it when I'm at a computer. EDIT: done.
« Last Edit: March 04, 2020, 08:08:31 AM by An Unassuming Moose »

frugalecon

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Re: Defeat the Net Debt
« Reply #199 on: March 02, 2020, 10:58:01 AM »
Total Debt: $185,712
Total Taxable Assets: $149,040

Net Debt:

[03.01.2020] ($36,672)
[02.01.2020] ($38,955)
[01.06.2020] ($44,380) (Transferred out of taxable for backdoor Roth)
[12.22.2019] ($40,825) (Alas, had to withdraw $$ from taxable to pay for some home repairs)
[12.02.2019] ($33,885)
[11.02.2019] ($37,740)
[10.07.2019] ($43,292)
[9.06.2019] ($46,479)
[8.03.2019] ($47,514)
[7.02.2019] ($49,990)
[6.01.2019] ($53,091)
[5.03.2019] ($57,000)
[4.03.2019] ($58,280)
[3.02.2019] ($62,770)
[2.02.2019] ($68,065)
[1.03.2019] ($76,999)
[12.03.2018] ($80,591)
[11.30.2018] ($83,584)
[11.01.2018] ($90,537)
[09.03.2018] ($96,664)
[07.28.2018] ($103,664)
« Last Edit: March 02, 2020, 04:16:12 PM by frugalecon »