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|Subject: TicoHombre - Update||Date: 7/3/2013 7:38 AM|
|Author: TicoHombre||Number: 307103 of 309118|
Time for an update.
Last update: http://boards.fool.com/ticohombre-update-30610752.aspx
I notice these Fool boards don't get visited nearly as much as they used to. I wonder if the Blog revolution is drawing people away. Anyway, on with the update...
I spent some time today updating both our budget and out ROTH IRA balances. It's been an amazing month. In a span of only three weeks, shortly after we decided to not ignore funding our ROTH IRA's in favor of paying off our three remaining rental properties, we have fully funded both our ROTHS (including the catch-up provision). That means that we can each choose to invest $6,500 annually instead of only $5,500 for the under 50 crowd. We now have $13,000 contributed to our retirement funds! Whew. That wasn't easy and it took a little creativity to accomplish. However, something even more amazing jumped out at me today.
We've paid off $100,517 in only three years!
While updating our July 1st mortgage balances, I rolled my cursor over an Excel "comment" field on my budget that was dated July 31st, 2010 showing a total balance of $255,025 spread over five different mortgages. Among the now dead and buried are our personal residence and one rental property, both of which are now owned free and clear! Now some folks don't seem to get very excited over paying off mortgage debt, but I do. I think deleveraging is both wise and prudent. Moreover, just as a growing porfolio of dividend paying companies gives one a feeling of security and satisfaction, the same can be said for disappearing debt...ANY DEBT, even the "GOOD DEBT".
We're not finished. We'll continue to whittle away at the remaining mortgage debt totalling $154,508. Now that the IRA's are fully funded for 2013, we can get back to our accelerated debt payoff. I am especially interested in getting property #3 paid off as quickly as possible because doing so will increase our monthly cash flow by $424.57 or $5,094.84 annually. To get that much cash flow from an investment portfolio, one would need a portfolio totalling $127,371 earning 4%. At this point I can bring home income equivalent to a $127,371 portfolio for only $29,565! That's a lot of incentive to get this housee paid off quickly.
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