Mortgage Payoff While Investing Aggressively

[NgineER]

Quote:

Originally Posted by pb4uski +1 on the refi... should be able to shave a point or more off that 4.625%. Or better yet, go with a 15 year... lower rate and faster payoff about 3% today.

+1
Refi to 15 or 10 year and get a lower rate while still paying off aggressively. Should save you thousands and pay back in less than a year I imagine.

[calico1597]

I was widowed at age 38 with a diabetic child. Unknown to me, he left all his life insurance to the child. Luckily we had mortgage insurance and my house was completely paid for. I felt secure having one less thing to worry about. I remarried a few years later, when we bought our together home it was important to me to get this home paid for.

[jkern]

Quote:

Originally Posted by molof +1 Refi to 15 or 10 year and get a lower rate while still paying off aggressively. Should save you thousands and pay back in less than a year I imagine.

+1

This is exactly what I would do.

[Senator]

Quote:

Originally Posted by dsp0725 - LLC made $173k - I personally made an additional $8200 net from part time job

First of all, you should be maximizing your LLC's business deductions. A company car, off-site meetings, meals and entertainment, office expenses, travel, equipment, cell phones, etc. You pay a 0% tax rate on business expenses. You can even fund a SEP IRA.

Then, you should be taking a salary, via a W2 or 1099. It should be ~50% of what is left. If you are a Java Developer, take $50K as a salary. You pay a 15.3% self employment taxes, plus normal income taxes on this amount. Use a SEP or 401K to save money.

Take the remaining money as a dividend. You pay normal income tax on this income, but no 15.3% self employment tax.

With the money left over, save it.