Ep 50: Overrated or Underrated? Tax Refunds, Mortgages and Mac & Cheese
RetirementOn This Episode
What are your thoughts on tax refunds, mortgages, macaroni and cheese and Star Wars? Let’s have some fun today and talk about whether these things are overrated, underrated or properly rated.
Takeaways
On today’s Saving With Silverman podcast, Mark Silverman CFP® shares his thoughts on whether these things are overrated, underrated or properly rated.
Getting a big tax refund
This is actually overrated, because all you’re doing is overpaying your taxes, so you’re giving the government a free loan.
The IRS is messed up this year. We know of people who have been waiting more than a year on a refund, and the government has started paying interest on it.
It’s OK to have a little bit of a refund or owe a little bit, but to get a huge refund is not something you want to do on a regular basis.
Star Wars
The original Star Wars was definitely underrated. The more recent ones were overrated.
Paying off your mortgage early
Should you pay off your mortgage early? It comes down to peace of mind. We have clients who do pay off their mortgage before retirement, and others don’t. It all comes down to income planning and cash flow.
I could make the argument that if you invest in a globally diversified portfolio and were averaging 5% or 6% and you’re paying 2% or 3% interest on a mortgage, you get to write that interest off, at least for now.
On paper, we could argue that having a mortgage isn’t a terrible idea.
Listen to the full episode or use the timestamps to jump to a specific section. Thanks for listening! We’ll be back for another show every other Thursday.
It comes down to peace of mind. We have clients that do have their mortgage paid off prior to retirement, and we have clients that do have a mortgage in retirement.
- Mark Silverman, CFP®
The Layout
Listen to the entire episode to hear more. Click on the timestamps below to skip to a particular segment.
0:51 – Tax refund
1:44 – Star Wars
2:30 – Paying off mortgage
3:33 – Variable annuities
5:00 – Macaroni & cheese
5:46 – Roth IRAs
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