Comments on: How To Get An Annual Discount With Dish Network http://www.ncnblog.com/2008/02/06/how-to-get-an-annual-discount-with-dish-network/ Debt Reduction Rocks - We Are Living Debt Free! Fri, 21 Nov 2008 16:38:10 +0000 http://wordpress.org/?v=2.6.3 By: Kiran http://www.ncnblog.com/2008/02/06/how-to-get-an-annual-discount-with-dish-network/#comment-84840 Kiran Fri, 08 Feb 2008 19:20:53 +0000 http://www.ncnblog.com/2008/02/06/how-to-get-an-annual-discount-with-dish-network/#comment-84840 You are getting an after tax return of over 8% . A fixed return. Your pre tax return is going to be less than 4% in most on-line savings (ING, etc.) over the course of that time. If its no hardship today, do it. Employing your capital to get 4% (savings account) is worse than 8%, all you sacrifice is the liquidity. Its really just a great Certificate of Deposit, that happens to throw off Dish Network as interest. You are getting an after tax return of over 8% . A fixed return. Your pre tax return is going to be less than 4% in most on-line savings (ING, etc.) over the course of that time. If its no hardship today, do it.

Employing your capital to get 4% (savings account) is worse than 8%, all you sacrifice is the liquidity.

Its really just a great Certificate of Deposit, that happens to throw off Dish Network as interest.

]]> By: Christopher Smith http://www.ncnblog.com/2008/02/06/how-to-get-an-annual-discount-with-dish-network/#comment-84718 Christopher Smith Fri, 08 Feb 2008 10:26:22 +0000 http://www.ncnblog.com/2008/02/06/how-to-get-an-annual-discount-with-dish-network/#comment-84718 Also, keep in mind that unless you manage to somehow deduct your TV, the money you save by prepaying is after-tax money. If you put that money in a savings account, you have to turn around and take a 25-33% hit on the interest you got. Also, keep in mind that unless you manage to somehow deduct your TV, the money you save by prepaying is after-tax money. If you put that money in a savings account, you have to turn around and take a 25-33% hit on the interest you got.

]]> By: tlange http://www.ncnblog.com/2008/02/06/how-to-get-an-annual-discount-with-dish-network/#comment-84333 tlange Wed, 06 Feb 2008 23:53:56 +0000 http://www.ncnblog.com/2008/02/06/how-to-get-an-annual-discount-with-dish-network/#comment-84333 This is a good deal, take it! This is a good deal, take it!

]]> By: Odnal http://www.ncnblog.com/2008/02/06/how-to-get-an-annual-discount-with-dish-network/#comment-84167 Odnal Wed, 06 Feb 2008 17:02:27 +0000 http://www.ncnblog.com/2008/02/06/how-to-get-an-annual-discount-with-dish-network/#comment-84167 By paying monthly, you would earn about $10 over the course of the year (remember to reduce your amount in savings by $44.95 each month). So by prepaying, you are saving about $35.00. As long as you have the money handy, it makes sense to me. By paying monthly, you would earn about $10 over the course of the year (remember to reduce your amount in savings by $44.95 each month). So by prepaying, you are saving about $35.00. As long as you have the money handy, it makes sense to me.

]]> By: Randy Hunt http://www.ncnblog.com/2008/02/06/how-to-get-an-annual-discount-with-dish-network/#comment-84108 Randy Hunt Wed, 06 Feb 2008 15:33:36 +0000 http://www.ncnblog.com/2008/02/06/how-to-get-an-annual-discount-with-dish-network/#comment-84108 The comparison is only fair if you would be making the monthly payments out of that same savings account. Assuming that was the case, your options would be (n-540)+(.04n*12) versus (n-500)+(.04(n-500)*12)... or to simplify it even further, you're basically trying to figure out if the interest on $540 over one year would equate to $40. I think the answer is going to be no, and I would say you're better served by paying the lump sum and saving the $40. However, that was assuming that you're paying your bills out of the savings account. Odds are that you're not. Therefore, my feeling is this: You're probably not earning anything on the money in the checking account from which you pay your bills. So now you're talking about the difference between making a monthly payment from your bill paying account, versus pulling interest-earning money out of savings. You're unlikely (most people are) to replace that earning power diligently, so in this case, I'm against doing it, because it's never a good fiscal choice to reduce your assets for the purpose of increasing a liability. To be honest, I think the amount of money being worried over is far too small to be worth the effort, but it's a nice exercise in financial planning. The comparison is only fair if you would be making the monthly payments out of that same savings account. Assuming that was the case, your options would be (n-540)+(.04n*12) versus (n-500)+(.04(n-500)*12)… or to simplify it even further, you’re basically trying to figure out if the interest on $540 over one year would equate to $40. I think the answer is going to be no, and I would say you’re better served by paying the lump sum and saving the $40.

However, that was assuming that you’re paying your bills out of the savings account. Odds are that you’re not. Therefore, my feeling is this:

You’re probably not earning anything on the money in the checking account from which you pay your bills. So now you’re talking about the difference between making a monthly payment from your bill paying account, versus pulling interest-earning money out of savings. You’re unlikely (most people are) to replace that earning power diligently, so in this case, I’m against doing it, because it’s never a good fiscal choice to reduce your assets for the purpose of increasing a liability.

To be honest, I think the amount of money being worried over is far too small to be worth the effort, but it’s a nice exercise in financial planning.

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