coalcracker
Dryer sheet wannabe
- Joined
- May 19, 2010
- Messages
- 23
My wife will shortly come into a large sum of money, ~$600,000 after taxes. We feel so fortunate and lucky, and have been contemplating how to best distribute the money. We are 32, no kids yet, and have about $180k left on a 200k mortgage we took out about 5 years ago with 100% financing (when that was still possible).
I had already planned to pay off our secondary mortgage, which is near 8% interest, in the next few months so we will do that. Our primary mortgage is about $150k with 4.875% interest, and I wanted advice on whether it makes sense to completely pay this off immediately. It seems a kind a gray area these days whether I can invest and make more that 5% returns with confidence. We have student loans which are between 1.5-2.5% interest, which I can't justify paying off early. We will also be padding our emergency fund a bit and getting rid of my clunker of a car
Thanks!
I had already planned to pay off our secondary mortgage, which is near 8% interest, in the next few months so we will do that. Our primary mortgage is about $150k with 4.875% interest, and I wanted advice on whether it makes sense to completely pay this off immediately. It seems a kind a gray area these days whether I can invest and make more that 5% returns with confidence. We have student loans which are between 1.5-2.5% interest, which I can't justify paying off early. We will also be padding our emergency fund a bit and getting rid of my clunker of a car
Thanks!