Hello, simple living forum friends! I used to be around a lot more under same screen name (Mermaid) at the old forums and have been lurking here for a while.
I am 50, and have a lot of money questions up for me right now. My partner and I live in a house I bought. We have a joint account and each have our personal accounts. We pay for the house from our joint account, and would eventually like it to be titled /deed in both our names.
I would really like to retire at 60, or at least go to working part time. She figures she'll work for much longer (she is a psychotherapist so that is doable). I bought the house because I had the down payment, and her credit was really bad at that time because of a long unemployment - her credit is much better now.
Right now, my question is, how should I invest my non-retirement funds vs. pay off mortgage, and what should I consider in doing so?
My numbers:
IRAs - Roth and Regular --- 242K
Personal Savings/Invests -- 31K - some earmarked to replace car
Mortgage @ 4.625% -- 123K (worth ~235K)
About 9K of the personal is in no-load mutual funds at Schwab and Vanguard, the rest is in savings accounts (Capital360, formerly ING Direct) earning less than the mortgage rate.
The idea of paying off the mortgage by the time I'm 60 is attractive, but if I'm using the calculator right that would take an extra $600 a month! $250/month to kill it by the time I'm 65. $250 would be tight right now, but some large expense may go away within about a year or so, which would make 250+ very doable.
I think I did the bankrate calculator right because I entered the current balance, 25 year mortgage and current interest rate and it came up with amount same as my current payment. Then I played around w/ adding additional amount each month.
My risk profile for probably 10K would be conservative because I would want it available for emergencies. For the remaining 21K, I would be comfortable with moderately aggressive. (terms from http://ift.tt/1rgYUAl)
Thanks for any thoughts or advice!
I am 50, and have a lot of money questions up for me right now. My partner and I live in a house I bought. We have a joint account and each have our personal accounts. We pay for the house from our joint account, and would eventually like it to be titled /deed in both our names.
I would really like to retire at 60, or at least go to working part time. She figures she'll work for much longer (she is a psychotherapist so that is doable). I bought the house because I had the down payment, and her credit was really bad at that time because of a long unemployment - her credit is much better now.
Right now, my question is, how should I invest my non-retirement funds vs. pay off mortgage, and what should I consider in doing so?
My numbers:
IRAs - Roth and Regular --- 242K
Personal Savings/Invests -- 31K - some earmarked to replace car
Mortgage @ 4.625% -- 123K (worth ~235K)
About 9K of the personal is in no-load mutual funds at Schwab and Vanguard, the rest is in savings accounts (Capital360, formerly ING Direct) earning less than the mortgage rate.
The idea of paying off the mortgage by the time I'm 60 is attractive, but if I'm using the calculator right that would take an extra $600 a month! $250/month to kill it by the time I'm 65. $250 would be tight right now, but some large expense may go away within about a year or so, which would make 250+ very doable.
I think I did the bankrate calculator right because I entered the current balance, 25 year mortgage and current interest rate and it came up with amount same as my current payment. Then I played around w/ adding additional amount each month.
My risk profile for probably 10K would be conservative because I would want it available for emergencies. For the remaining 21K, I would be comfortable with moderately aggressive. (terms from http://ift.tt/1rgYUAl)
Thanks for any thoughts or advice!
Invest or pay off mortgage
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