401K vs Mortgage
As I watch my 401K plan savings drop, I have to wonder if it wouldn’t be better to take that money (while it is there) and pay off my largest expense which is my mortgage of around 140K. Thoughts? Thank you.
Terry Says
No don’t do that! Yes, pay your mortgage vs CONTRIBUTING to your plan. But don’t take money OUT! If you are under 59-1/2 there is a 10% penalty. Then you pay income taxes (which might disqualify you from the stimulus check!) AND you lose all future tax deferred growth on the money. That’s a bad trade for sure!!
