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Advisor

Re: New Message: All business

   I wouldn't touch a variable long term interest rate loan.   A few years ago I read where 75% of land debt is in variables.

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Advisor

Re: New Message: All business

   Last month when I went to the local Ag Credit I remarked to the manager that I thought a lot of money was being repaid and loans were maybe slowing.  His response was the opposite. 

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Senior Contributor

Re: New Message: All business

Tax rates are high compared to interest. Have seen a lot of new paint around these parts too in December. Businesses are supposed to make profits and pay taxes, not spend money to reduce taxes.

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Senior Advisor

Re: New Message: All business

It's so difficult putting your money on previous debt when there is so many things you want to spend it on.

 

It reminds me of young folks swimming in credit card debt receiving a christmas check and buying the latest greatest cell phone with all the newest technology.

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Highlighted
Senior Contributor

Re: New Message: All business

That is very good advice to adhere to at any time whether we are in a recession or not.

 

Having said that, there's always reasonably good justification for not only paying down debt, but incurring new debt, provided that the business plan suggests a reasonable assumption of payout or that it reduces one's overall costs.

 

 

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Veteran Advisor

Re: New Message: All business

Its not called "spend money to reduce taxes"  Its called "economic stimulus"  i.e. spend money to create jobs.  And its all very patriotic.

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Senior Advisor

Re: New Message: All business

Except, where do they create the job?

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Senior Advisor

Re: New Message: All business

 have had a variable mortgage on an 80 for several years. The highest interest rate I paid was one year at 7%. I don't know what the average rate has been but last year was below 3% and this year will probably be around 3%.

 

That is why that farm is not paid off as extra principal payment have been directed toward the fixed rate mortgage at a much higher rate. Although, that parcel is next in line for the payoff.

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Advisor

Re: I been telling the fellows here to pay down debt and leave the new paint alone

Don said "I been telling the fellows here to pay down debt and leave the new paint alone for at least two years if not longer"

 

You'll be glad to know I have been following your advice ... although as you said it is "what a caring father or grandfather would tell a loved one"  I am at the point I only we for things you pay real estate tax  on and a combine I bought this winter ... and I think if I play my hand correctly I can pay it off in 2 years.

 

My goal is to be debt free 5 years ago.  OK, so I missed that.  I am still making progress.  I've bought (for me) a lot of iron the last several years ... new drill, new disk, used disk, used tractor, 3 grain trucks, belt conveyer, used combine and heads, header trailers couple flat bed trailers, car for my wife ... and praise God for His generosity the only thing I borrowed on was the combine.

 

Next year I mght look back and say I should have held off on a couple of those and bought or paid off land.  Hindsight is 20/40 ... sometimes you are still wrong.

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Senior Contributor

Re: New Message: All business

Legalized tax evasion is patriotic? I can see if it doesn't bring representation, but it has brought more than enough to warrant writing the government tax policies for greater future benefit. Liberty it is not.

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