Author Topic: Thank you (a tale of badassery)  (Read 4575 times)

OT1138

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Thank you (a tale of badassery)
« on: February 02, 2013, 12:49:33 PM »
Hi everyone,

After nine years of struggling, I finally sold my business and have made a nice windfall. Rather than go out and spend the money on a bunch of things we don't need, I have instead been studying arduously (including reading this blog) and figuring out exactly how I could take my life back from the banks.

One particular issue that I really had a hard time with was whether to pay off my mortgage (@4.25% with 26 years to go) or invest the proceeds in the market. I read a lot of posts on this forum and today I finally made a decision. I walked into the bank just two hours ago and wrote them a check for $742,000. With the exception of a rental property (which I am selling in a few months), we are completely out of debt!

Like many of you, I realized that I could probably make a few extra points in the markets over the next 26 years with that money. However, there was a peace-of-mind factor too (more for my wife than me, but hey, that has benefits for me as well). But the thing that really kicked it over the edge was realizing that I was paying $2,500 a month on interest. So maybe I don't have that money in the bank, but now I will have the continual enjoyment of knowing that I just gave myself a $30,000 a year raise (and yes, that money is going right back into savings).

Anyway, just wanted to celebrate and say thanks to everyone for all of the good discussions.

Ozstache

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Re: Thank you (a tale of badassery)
« Reply #1 on: February 02, 2013, 01:19:13 PM »
With a mortgage that size, you either have a humble house in the outskirts of Sydney Australia or a mansion anywhere else ;-) Either way, it must be a massive relief to no longer be sentenced to so much interest payment for so long. Good onya!


The Money Monk

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Re: Thank you (a tale of badassery)
« Reply #2 on: February 14, 2013, 02:04:22 PM »
Awesome man, freedom is good!

The Taminator

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Re: Thank you (a tale of badassery)
« Reply #3 on: February 14, 2013, 02:07:52 PM »
With a mortgage that size, you either have a humble house in the outskirts of Sydney Australia or a mansion anywhere else ;-) Either way, it must be a massive relief to no longer be sentenced to so much interest payment for so long. Good onya!

He could also live in a fixer-upper in my fair city :)

kiwibeach

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Re: Thank you (a tale of badassery)
« Reply #4 on: February 14, 2013, 02:32:00 PM »
Or a fixer-upper in central Auckland, or a mansion anywhere else in NZ :)

Phoebe

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Re: Thank you (a tale of badassery)
« Reply #5 on: February 14, 2013, 02:36:29 PM »
Wow $2500 a month in interest!!  Nice job giving yourself a raise!

arebelspy

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Re: Thank you (a tale of badassery)
« Reply #6 on: February 14, 2013, 07:17:55 PM »
Congrats.  What an awesome feeling.  Go celebrate a little!  :)
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

DoubleDown

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Re: Thank you (a tale of badassery)
« Reply #7 on: February 15, 2013, 03:33:49 PM »
Congratulations!

But where do you get a mortgage for $742,000 with only a $2,500/month payment in interest alone?!

I just tried it in a mortgage calculator, and had to put in an interest rate of only 1.5% in order to get a $2,560 monthly payment that included principal on a 30-year loan, and also assuming no higher rates charged for non-conforming (i.e., jumbo) loans.

arebelspy

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Re: Thank you (a tale of badassery)
« Reply #8 on: February 15, 2013, 05:24:17 PM »
He said he's paying 2500/mo in interest, not total.  Meaning his monthly payment is likely quite a bit higher.

He said it was 4.25%, so probably around an 800k loan, 2500 to interest, 1000 to principal, 3500 total (numbers not exact, but all reasonable).
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

mm1970

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Re: Thank you (a tale of badassery)
« Reply #9 on: February 15, 2013, 08:32:15 PM »
Yeah, well if he lived here it would be a modest home too. (Coastal southern california)

happy

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Re: Thank you (a tale of badassery)
« Reply #10 on: February 15, 2013, 09:55:54 PM »
I don't really care where you live :)
A big congratulations on being debt free!