To the pilots age 61 and older:

[Lear70]

So lets do your math here. You make say $100,000k You pay out 20k in interest on your mortgage. This brings your taxable income to 80k. Lets put you in the highest 36% tax bracket for this example.

No, let's NOT put someone who makes $100k reduced to $80k after deductions in the highest tax bracket because... news flash... at that income they're NOT in the highest tax bracket.

If writing off interest was so great why the hell would I refi to 4.5% when I could keep a higher interest rate of 8% plus. Used this example right before I fired my financial advisor. Numbers don't lie if you can do the math.

You're not ONLY writing off interest in the example of taking a loan out on a property to invest in other things (other rental property, etc), but you're ALSO making money on that investment capital.

You failed to realize we're NOT ONLY talking about a 6-7% reduction of taxes on $160,000 income but ALSO the INVESTMENT INCOME from that money you took the loan out for to begin with because the homes were PAID OFF to begin with, that means the loans he takes out on those properties is PURE INVESTMENT CAPITAL for OTHER INCOME GENERATION.

Don't quit your day job, Mr. Chairman...

 

[Chairman]

.

Don't quit your day job, Mr. Chairman...

Trust me I won't and don't loose much sleep on your math skills either. You can put your example in any tax bracket you want. Go borrow all the money you want to invest. Lots did that in the dot com era worked for them to. To each there own but my math pays off every time with no risk of capital that has to be paid back.

Chairman

 

[JAM-BRO]

I fly with plenty of over 60 old farts... They believe they have to prove that they still got it and try to do everything. I don't mind though, less work for me. I do not like that my voice gets a bit raspy at the end of a 4day trip. Them old bastards are deaf...

"Circuit Breakers"....
"What??" says the old deaf capt...
"Sorry, ehem, CIRCUIT BREAKERS!!!!",
"Check" replies the old azz capt...
The lead can hear me screaming from the first class galley and comes into the flightdeck and asks , "Is everything OK boys?"...
"Yeap", I say, "Just reading the checklist..."

Oh well!!! It is what it is... We should push for a few things though. If furloughs happen, start with the over 60 guys first. When you fly with one, tell them that and see their faces change. Also tell them that the Age 60 Rule was unfair for all the guys that had retired but were not allowed to come back even though they were not 65 yet.... They love that too... They all say that that would not be right. They retired!
Gets their old hearts pounding.

 

[75 Driver]

Yawwwwwwnnnnnn

 

[eaglesview]

75, That about sums it up. It's the law. Folks need to get over it!

Yawwwwwnnnn

 

[Who Dey]

Quick math from Dave Ramsey,

Mortgage 5%
Average return on S & P 500 = 12% over entire history of S & P 500
Inflation avg = 4%

12% gains - 5% interest - 4% inflation - Capital gains taxes= break even but still have the liabilty of the loan

This is for primary resident not investment property.

Also 12% lately is hard to get and inflation looks like it will be greater than 4% by most experts predictions. So I will take no mortgage payments any day.

 

[SplitBar]

So lets do your math here. You make say $100,000k You pay out 20k in interest on your mortgage. This brings your taxable income to 80k. Lets put you in the highest 36% tax bracket for this example.

So at 100k and paid for houses you would pay $36,000 in taxes

So at 100k with 20k paid in mortgage interest you would pay$ 28,000 in taxes.

So we would rather pay the bank 20k to save paying the goverment 8,000k. Seems to me I would rather have the extra 12k in the bank and then knock yourself out investing that money. And if you tell me well you would be in a lower tax bracket do it at 15% tax for 80k and you are still out and extra 4k vers having your homes paid for


If writing off interest was so great why the hell would I refi to 4.5% when I could keep a higher interest rate of 8% plus. Used this example right before I fired my financial advisor. Numbers don't lie if you can do the math.

Plus the higher tax bracket rate is only paid income that is beyond that threshhold. For the sake of discussion lets say that 50-100K was taxed at 25% and 100-200K was taxed at 35%. If you made 100K you would pay 25K in taxes. If you made 101K you wouldn't pay 35% on the entire 101K....you would pay 25% on the 1st 100K and anything above 100K you would pay 35% on so someone who made 101K would pay $25,350, NOT $35,350.

 

[waveflyer]

SyBill- answer my question- when most every airline hired for projected retirements- and then age 60 happened- directly causing furloughs- there's no reason to believe that ought to have been handled differently?

But you got yours didn't you?

 

[pilotyip]

But you got yours didn't you?

Adam Smith at work, everyone makes ever economic decision in their own best interest. He did, you did, I did

 

[BobbyBiplane]

RETIRE you old jerks!


You knew the age limit was 60 your entire careers, so step down and get the hell outta here!

Cry Baby! You are both an idiot and a baby. Grow up.

Bob