Here is my question….
I’m 59 years old and I have $6,500.00 to invest.
Do I add it to my existing Roth IRA, or do I make an extra principle payment to my home mortgage?
I currently owe $198,000.00 on my mortgage with an interest rate of 3%, and 15 years left.
Love hearing you on WGN Wednesdays.
Terry Says: Tough to answer without more info. Let’s assume you are still working and eligible to make a Roth contribution. That’s probably what I would do first — so the money can grow tax-free. But you have a very large mortgage balance, which means you will have to work until your mid-seventies unless you plan to retire earlier and downsize. The extra money you throw at the mortgage wouldn’t matter very much in that case, so yes — I would go with the Roth.