Roth IRA

By Terry Savage on May 02, 2016 | Financial Planning / Retirement

Hi Terry
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.

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