what to do with extra money
I would like some advice on what is smarter, pay off my mortgage which is $50k or to invest those $50K in the market? I’m 53 yo, no dependents, no cc or other debt, already save 25% of wages in my 401k plan. My current mortgage rate is 3.75%. I’m current only earning 2.00% from my credit union on $100k I have saved outside of my 401K. If I pay off my mortgage, i’d still have $50K as my emergency fund. I kindly thank you for your time.
Terry Says
Oh, what wonderful problem have! (I think that can only happen if you don’t have a wife and children!) Frankly, I think it’s a tossup between the options you gave me. You’re already well invested in the stock market, especially at the end of a long bull market. And I see no reason to give up that 3.75 percent mortgage loan.
Have you looked into other investments or interests — either rental property or even travel?? You’ve worked for this money. Perhaps it’s time to enjoy some of it? A hobby, charitable interests?
One more thing: have you purchased long term care insurance? You might want to consider one of the new combo policies — where if you don’t use the care portion, you can name a beneficiary to receive the proceeds at your death — maybe a charity? A deposit of $50,000 would get you a nice care benefits package — because you’ll likely be alone when it comes time to use it
Read all about it in the new third edition of The Savage Truth on Money being released this week. There’s a link to Amazon on my website.
