USA | RCR - 8/26/2023 11:58
1.6% advantage to the 5% checking, IF you can get the favorable 20% tax bracket. AND if you have done a phenomenal job with your term debt, 3% in your example and my real number.
If you are at 4% on loans and 35% tax bracket, the 5% checking is no advantage.
I'm not prepayng any principal bc I don't have an extra 250k. I owe on operating at 6.5%. Add in inflation at 7%+, paying down term debt at good rates is mathematically, clueless.
However, when this thing eventually pops. I want zero debt. Wore out equipment but paid for land. That will pay dividends above the 1% earned in the example. It's a race to the finish line, always.
You are having hard time understanding what reality is.
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If you have 250k of cash
