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Author: mawhinney Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19369  
Subject: Benefits of Mortgages Date: 5/4/2000 9:56 AM
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Is there anyone out there that believes holding a mortgage can be beneficial in retirement years?
To me a mortgage offers tax deduction of interest payments. This deduction lets one use "tax money" to help pay for the home. A mortgage also provides leverage to use the money that would be tied up in a mortgage-free home. That money could then be put into conservative investments. If the home appreciates it could be sold after living in the home for 2yrs. and the gain would be tax free.
Your thoughts would be appreciated!
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Author: murraypa Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3834 of 19369
Subject: Re: Benefits of Mortgages Date: 5/4/2000 2:30 PM
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I asked the same question of Vanguard & the answer was that it was a good idea. They cited the tax benefits.

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Author: lkrueger One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3835 of 19369
Subject: Re: Benefits of Mortgages Date: 5/4/2000 3:57 PM
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mawhinney wrote: "...To me a mortgage offers tax deduction of interest payments. This deduction lets one use "tax money" to help pay for the home.

I would answer: This deduction lets one use "tax money" to pay part of the interest incurred.

lkrueger

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Author: baomike Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3859 of 19369
Subject: Re: Benefits of Mortgages Date: 5/8/2000 4:08 PM
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The money that you borrow and invest is just margin
debt. If it comes from a broker you can not deduct
the interest. If from a mortgage you can.

The question is can you earn more than the money
costs you? Can you do it consistently.


Baomike


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Author: WauseonFox Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3860 of 19369
Subject: Re: Benefits of Mortgages Date: 5/8/2000 8:54 PM
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Baomike:

Interest paid on a margin account is tax deductable, at least in USA. Pub 17 tells me so.

--WauseonFox--

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