So...I am about to buy my first home. Although I am quite happy about it, it does gives a bit of trepidation to be in debt for the first time in my life. You see, I have never had credit card debt, car debt, student loans or any other kind of debt. So, unlike most people who had chance to deal with smaller types of debt (maybe not in this forum), I was never psychologically prepared to have this "sword of Damocles" called mortgage hanging over my head and I feel as insecure as an ugly teen going to a first prom party So I am coming to this forum in order to tap your collective wisdom.
I am 33 years old, debt free and currently have a low six figure yearly income. I'll be buying a place for $290K on a 30 year mortgage. I am planning on putting down $100K and borrowing the other $190K at around 6.25% a year.
Now, here is my dilemma: I have about $30K invested in gold (at Kitco) which I bought for a little over $400 an ounce about 4 years ago (it is now at $650 an ounce). I also have about $50K in a MM overseas which has a yield of about 12% a year.
Now, should I liquidate those two and use the cash to reduce my mortgage? Please be aware that I do have a 401K, a Roth IRA and a Vanguard account that I WILL NOT touch. I will also keep my $20K cash reserves for emergency. My rationale is that those two investments (gold and the overseas MM) are high risk and therefore I might be better off simply putting those assets into the home. Does anyone sees it differently? Am I missing something? Any advice would be most welcomed.
I am 33 years old, debt free and currently have a low six figure yearly income. I'll be buying a place for $290K on a 30 year mortgage. I am planning on putting down $100K and borrowing the other $190K at around 6.25% a year.
Now, here is my dilemma: I have about $30K invested in gold (at Kitco) which I bought for a little over $400 an ounce about 4 years ago (it is now at $650 an ounce). I also have about $50K in a MM overseas which has a yield of about 12% a year.
Now, should I liquidate those two and use the cash to reduce my mortgage? Please be aware that I do have a 401K, a Roth IRA and a Vanguard account that I WILL NOT touch. I will also keep my $20K cash reserves for emergency. My rationale is that those two investments (gold and the overseas MM) are high risk and therefore I might be better off simply putting those assets into the home. Does anyone sees it differently? Am I missing something? Any advice would be most welcomed.