02-21-2014, 11:51 AM
Guys,
Thanks so much for the insights! However, I don't think I was too clear.
a) at some point I will invest the bonds into stocks--this are my dry powered, separate from my fixed income bond allocation. So risk is factored in. The investment would be long term buy and hold; in essence I would be deepening my investments in the high yield section of my Dividend portfolio--which I will be doing at some point anyway.
b) There is a tax consequence to using the bonds; but that will be there whenever I use them.
c) If I used earned (read already taxed) income to pay off the house, I don’t lose the interest on the bonds plus get taxed on them. But it takes longer and I accrue mortgage interest. But I don't dig into my "principle."
d) My question is, if I use the bonds to pay off the mortgage, BUT STILL penny pinch for a year and match the bond outlay with taxed cash into stocks, am I ahead of just using taxed income to pay off the mortgage over a year?
Am I just playing games with my own head? Is “pay off the house and move on” the clear thinking here?
My inclination is to use the bonds, and penny pinch. I feel that way I’m done and I really don’t lose the bond funds (save the tax issue).
I appreciate the kind thoughts…. and math help ;-)
Ronn
Thanks so much for the insights! However, I don't think I was too clear.
a) at some point I will invest the bonds into stocks--this are my dry powered, separate from my fixed income bond allocation. So risk is factored in. The investment would be long term buy and hold; in essence I would be deepening my investments in the high yield section of my Dividend portfolio--which I will be doing at some point anyway.
b) There is a tax consequence to using the bonds; but that will be there whenever I use them.
c) If I used earned (read already taxed) income to pay off the house, I don’t lose the interest on the bonds plus get taxed on them. But it takes longer and I accrue mortgage interest. But I don't dig into my "principle."
d) My question is, if I use the bonds to pay off the mortgage, BUT STILL penny pinch for a year and match the bond outlay with taxed cash into stocks, am I ahead of just using taxed income to pay off the mortgage over a year?
Am I just playing games with my own head? Is “pay off the house and move on” the clear thinking here?
My inclination is to use the bonds, and penny pinch. I feel that way I’m done and I really don’t lose the bond funds (save the tax issue).
I appreciate the kind thoughts…. and math help ;-)
Ronn