Canadian Disney Mom
Formerly Tollerwalker - originally joined July '05
- Joined
- Oct 10, 2011
I guess technically we paid cash but it was using our home equity credit line at around 2.5% or so.
I'm a dinosaur w/ a vested defined benefit pension & will get social security. But I maximize my 401K (actually a 457b - but same thing) contributions to reduce my current taxes on my current income. It has never made sense to me to pull that tax protected money out via a 'loan' to myself and then turn around and have to pay the loan back with taxed money and then pay taxes on it a second time when I'm w/drawing it in retirement - it's a double tax on that money and IMO that's a lot of taxes to pay.Sha la la la la la live for today
And don't worry 'bout tomorrow, hey.
I did a 401k loan for our DVC. It would take YEARS to save that much cash. Who's got that kind of time to wait?
IMO the risk far outweighs the interest rates and numbers so I feel it's a poor choice even at zero % interest which really isn't anyway.We paid cash. I was not interested in financing through the companies that finance DVC purchases...the interest rate is near 10%, I don't think I could make the numbers work at that rate. If I did not have the cash I would have rent the points I needed until I could buy.
Agree wholeheartedly with this.We paid cash for our purchases. Borrowing money for a vacation doesn't make sense to me.
People buy resale to save money, paying cash saves you more money, so it would not surprise me if the majority of resale purchasers paid cash.