Hello,
I'm very close to having no debt besides my mortgage. Hooray! Still no time to take my foot off the gas. Let's keep going.
When I pay off this last debt, I will be maxing out my ROTH IRA every year and I will be contributing 15% of my income to a 401k. However, at this point I'll have a decision to make and I really don't know what is best.
I did the math and I can pay off my house in around 6-7 years. It seems like a long time, but compared to 30 years it isn't much. Do I continue to max out my ROTH, slowly increase my 401k contribution and then throw every single dollar I can at the mortgage or do I ignore the mortgage and just invest everything?
I'm really stuck because I think the idea of having no mortgage and being totally debt free is very alluring. Still I think it makes more mathematical sense to just invest everything. Of course life throws plenty of curve balls and having no mortgage means you need way less money for necessities if something goes wrong. Still I'm one to want to do what's best for my financials in the long run. What would you do in my situation? I'm very interested in hearing from as many people as I can because the more explanations on which one is best the better.
I hope you're all enjoying your 2020 and so far.
Take care and I hope to hear from you.
I'm very close to having no debt besides my mortgage. Hooray! Still no time to take my foot off the gas. Let's keep going.
When I pay off this last debt, I will be maxing out my ROTH IRA every year and I will be contributing 15% of my income to a 401k. However, at this point I'll have a decision to make and I really don't know what is best.
I did the math and I can pay off my house in around 6-7 years. It seems like a long time, but compared to 30 years it isn't much. Do I continue to max out my ROTH, slowly increase my 401k contribution and then throw every single dollar I can at the mortgage or do I ignore the mortgage and just invest everything?
I'm really stuck because I think the idea of having no mortgage and being totally debt free is very alluring. Still I think it makes more mathematical sense to just invest everything. Of course life throws plenty of curve balls and having no mortgage means you need way less money for necessities if something goes wrong. Still I'm one to want to do what's best for my financials in the long run. What would you do in my situation? I'm very interested in hearing from as many people as I can because the more explanations on which one is best the better.
I hope you're all enjoying your 2020 and so far.
Take care and I hope to hear from you.