Still trying to determine how screwed I will be under the new tax heist. I have always operated under the philosophy of paying myself first and never...and I mean never...carrying credit card debt. Haven't paid a penny of interest to those CC thieves since 1996 when I tired of making monthly payments to multiple CCs and paid them off. The plan seemed draconian to us at first, but it allowed us to build up significant retirements savings. Now, here is the rub. With our pensions and SS, we can live comfortably without touching retirement money and that's a good thing because I am terrified of drawing from that money. I am truly afraid of running out of money. Having said that, I borrowed $50k from home equity (house is paid off) for home improvements at 3.25% in 2014. That rate is now 4.25 and about to go up again. I believed then it was better to borrow money at that rate than to draw from IRA and incur a serious tax consequence. Instead, I chose to keep the money invested in hopes that it would grow at a higher annual rate than what I paid for the HELOC and so far it has. Now, I don't know what to do. I feel certain that we will experience a significant market correction in the near future and it would be better to take the money out of the market by paying off the HELOC and, in effect, put that money back into my property. That move will also put me into a higher tax bracket with tax serious consequences. I am so confused, and then you toss in the possibility that I will pay higher taxes under the proposed tax reform and then I'm pissed on top of all else.
Yeah, well, that's like your opinion, man.