4 ms·

> It’s surprisingly easy to count RSUs as income This is irresponsible in my opinion. (I'm sure some disagree.) Personally, I took the conservative approach wh

> It’s surprisingly easy to count RSUs as income This is irresponsible in my opinion. (I'm sure some disagree.) Personally, I took the conservative approach where during my home purchase we made sure our income could afford a mortgage. Our RSU's are a bonus and when they come we can pay down our mortgage faster, go on fun vacations, or do all sorts of other things. Currently, I'm on pace to pay off my 30-year mortgage in 8-10 years by putting half of my RSU's towards my mortgage on top of the monthly payments.

arcticbull 4y ago
> Currently, I'm on pace to pay off my 30-year mortgage in 8-10 years by putting half of my RSU's towards my mortgage on top of the monthly payments. This is not a great idea if you have a 30-year fixed mortgage with an APR below inflation. You're better off not paying it off, and instead setting aside the cash you would have used. Even in like a Series I bond which is currently paying 9% APR. Money loses value every year, and it's losing value faster than your mortgage is going up in cost. Therefore, why would you pay it off today using money that's worth more, when you can pay it off in the future using money that's worth less? Especially if you can park your money in something that tracks inflation. Paying off your mortgage early is one of those things folks are always told is good - it's really not. That's a free 9%+ return on capital. You're giving up free double-digit returns by paying off your mortgage early.
- notyourwork 4y ago
  You're sort of ignoring the point which is I get to chose how to allocate my money by not factoring my RSU's into my upper limit for what I can afford. I can keep my RSU's as they vest, or I can pay ahead on my mortgage or a combination of things. If you're in tech and paying your mortgage depends on your salary and your RSU's you are not being financially responsible.
  - arcticbull 4y ago
    Now all that I'm with you on!
- danans 4y ago
  > Paying off your mortgage early is one of those things folks are always told is good - it's really not. It only makes sense if there is a legitimate fear that someone might otherwise waste the money on frivolities - for many people saving and the self control it requires is very challenging.
  - digisign 4y ago
    It was great in the old days of high interest rates, not so much at low ones.

arcticbull 4y ago

> Currently, I'm on pace to pay off my 30-year mortgage in 8-10 years by putting half of my RSU's towards my mortgage on top of the monthly payments. This is not a great idea if you have a 30-year fixed mortgage with an APR below inflation. You're better off not paying it off, and instead setting aside the cash you would have used. Even in like a Series I bond which is currently paying 9% APR. Money loses value every year, and it's losing value faster than your mortgage is going up in cost. Therefore, why would you pay it off today using money that's worth more, when you can pay it off in the future using money that's worth less? Especially if you can park your money in something that tracks inflation. Paying off your mortgage early is one of those things folks are always told is good - it's really not. That's a free 9%+ return on capital. You're giving up free double-digit returns by paying off your mortgage early.

notyourwork 4y ago
You're sort of ignoring the point which is I get to chose how to allocate my money by not factoring my RSU's into my upper limit for what I can afford. I can keep my RSU's as they vest, or I can pay ahead on my mortgage or a combination of things. If you're in tech and paying your mortgage depends on your salary and your RSU's you are not being financially responsible.
- arcticbull 4y ago
  Now all that I'm with you on!
danans 4y ago
> Paying off your mortgage early is one of those things folks are always told is good - it's really not. It only makes sense if there is a legitimate fear that someone might otherwise waste the money on frivolities - for many people saving and the self control it requires is very challenging.
- digisign 4y ago
  It was great in the old days of high interest rates, not so much at low ones.