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What to do ??
Old 07-01-2006, 07:30 PM   #1
Confused about dryer sheets
Join Date: Jun 2006
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What to do ??

I'm 43 years old and want to retire in 7 years. I will draw 60% of my salary from a PERS pension and additional 4% draw from deferred comp. I have an existing, 10 year interest only mortgage that I make a $500 monthly principal payment to.
My question is, should I continue to make the principal payment to help buy down my mortgage. Or should I invest the $500 a month into a deferred comp or some other retirement fund??
My present mortgage balance is around $335K, house is valued around $700K

* * * * * * * * * * * * * * * * * * * * * * * * * * * * *OR
Should I buy the really big boat now, pay it off in 7 years, sale the house and be Mexico bound*

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Re: What to do ??
Old 07-01-2006, 07:53 PM   #2
Recycles dryer sheets
Join Date: Jun 2006
Posts: 322
Re: What to do ??

If this a party boat and your coming down to ft lauderdale. Then I vote for the boat.
Whats the rate on the mortgage ?
I would lean towards investing is stocks or other real estate. Since my returns are higher than my mortgage rate. I do my stock investing in the roth. So I dont have to pay tax on my gains.
Do you have the 401k with a match ? Wife with a 401k with a match ?

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Re: What to do ??
Old 07-01-2006, 10:00 PM   #3
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Join Date: Mar 2006
Location: Houston
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Re: What to do ??

Not enough data

What are your assets, expenses, will you keep the house, future liabilities, is the pension COLA'd??
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
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Re: What to do ??
Old 07-02-2006, 11:58 PM   #4
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Re: What to do ??

It's usually better to pay off debts unless the interest rate is low or lower than what you can get from your investments.
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