 As a young person in your 20's, is it better to start saving for retirement or pay off debt? |
| My debt consists of student loans and a mortgage. I contribute to a retirement plan with my job, but i work for the government, so there is no matching for my contributions. Should I severly reduce ... |
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 What bank are you with and are they any good? |
| I used to bank with The Woolwich, then they changed to Barclays, who are the biggest jokers I have ever come across! I have a huge list of issues with them, the most recent one being that they ... |
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 I have extra cash, should I make extra payments on my 1st or 2nd mortgage? |
Additional Details
Great answers, everyone. Here are some specifics:
1st is for $138k and about 25 years left.
2nd is for $9k and about 9years left.
No credit card debt.<... |
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 Im scared that il get into debt??? |
im going to look at acar this afternoon,its 1200,mums lending me 350,but wiv the insurance aswell i dont know if il have enuf money for petrol,what do i do wait till i find acheaper car??
A... |
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 Where can I purchase a form for a will, without using a solicitor? |
| I can't pay a lot, and it will be very straight forward as all my estate is going to my daughter.... |
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 I need a fast loan for school, what company should i choose? |
| i need one that i can pay after a graduate, and one that does not require a co-signer....... |
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 If you write a personal check($50,000) to a close friend for whatever reason, does it get reported to IRS? |
| this is personal check from personal checking account in Bank of america or Washington mutual & that's the exact amount you have. So after the check gets cashed, you have zero balance. ... |
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 Can i still use my cheque book? |
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| Somebody sent me a big cheque to pay money to another person... I'm just scared this money will somehow dissappear from my account once I pass the money further...... |
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 How can he sign his check over to me ? |
| My friend Rex owes me some money . He wants to sign a check over to me . What does he write on the back of his check so I can deposit it into my bank account ?... |
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 How many of you have a full-time job and........? |
| also have a part time job? I am thinking about doing it but am not looking forward to it. The bills are just adding up for me, with a mortgage, utilities, car payment and now the high cost of ... |
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 In order to be rated as a millionaire, does the money need to be liquid? |
A friend of mine has £400,000 in the bank and approx £800,000 in assets (paid off mortgage, boats and cars, fixed deposit investments etc).
He claims he is a millionaire in casual ... |
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 How can i get £300 in 3 months? |
| im 14 and im trying to get some money and i need adwice how to get it fast, with out any stupid answers like rob the bank!!!!... |
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 I have a qustion im a teenager who's plaining on moving out of my parents house? |
| i am turning 18 years old next year and im plaining on moving out of my parents house, i was told to buy things now so i wont have to worry about it next year when i move. i was wondering can any 1 ... |
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durango2414 | I have 850,000 dollars, should I pay off my house at 350,000 or invest the money and get an income? |
Should I pay off my house at 350,000 or just get an income off of the money and pay monthly of the house? |
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richkvegas
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Pay off the house and then invest the rest PLUS invest the amount of you house payment every month. Cash flow if the key to wealth building, not playing games with interest rates and tax savings. |
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Kathie L
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invest |
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droolie_da_dog
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invest. |
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Sahara
 |
You will have to do some calculations in order to find the answer.
First off, you need to look at the interest rate you are paying.
You need to take into account the tax benefit.
You need to look at available investment options.
You need to do a comparison. Can you make more money than what you are paying for the mortgage? If you have a low rate then it might be advisable to wait before paying off the mortgage and invest the money. But there are always risks. You need to assess your total financial situation. What are your goals? What are your options? Look at each one individually. Look up the time value of money on the internet. You can use that as a tool to compare different investments. |
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Julie V
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pay off the house...still have 500k invest 250 and put 250 in a secure IRA. |
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thejimstr
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pay off the house and then invest the rest my good friend best buddy in the world |
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tonalc1
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Pay off the house. |
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Cornell is Hot!
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pay off the house.
invest the rest if thats what you want to do. |
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Insensitively Honest
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If you never plan on moving again , PAY OFF THE HOUSE . invest the rest , you can make the house payoff back in no time , why give the mortgage company more than you have to when they do not give a sh*t about you in the first place , besides , if you do not pay off the house , then something bad happens with your investment , the house payment will still be due , and in reality , would not paying off the house be a good investment ?? Depending what else you invest in there are is guarantee if the market goes belly up , but you will not risk the loss of your house ( if it is paid for) |
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oppositeangles
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everyone will always be in debt; school loans, cars, houses, kids , new clothes, food, food , food you midist well pay month to month because having a little debt is all just a part of life |
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mead1973
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With this kind of money you really should be speaking with a financial advisor. I would recommend paying off the house because there is still alot of money left. Remember that your home is an investment and will appreciate yearly. |
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beauty s
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pay off your home |
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telluwat
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paying the house note all at once will save on interest charges (have you looked at the interest you will pay on a 30 yr fixed?).
I am not sure the money you get from investing can cover all of your expenses. especially when you don't have a job and have nothing to do all day but find ways to spend you new found wealth. |
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Robert F
 |
The answer, as it is so often, is that it depends.
You need to evaluate how much investment income you could derive from the 850k, but you also have to evaluate the risk of that investment. For example, if you put it into T-bills, you'd be able to get something approaching 5% at almost zero risk (http://www.treasurydirect.gov/RI/OFBills)
If you're paying 8% on the mortgage, your effective rate after tax benefits is between 6.4% and 4%, depending on your tax bracket.
Since tbills are state and local tax exempt (http://www.treasurydirect.gov/indiv/research/indepth/tbills/res_tbill_tax.htm) with 850k in tbills and a 350k mortgage, you'd earn about 42k and spend about 28k in interest. The 28k would leave you with 14k of taxable federal income, which would cost between 2k and 4k of taxes, so your net usable income is around 10k.
With 500k instead of 850k invested, you'd still be able to earn about 25k per year in interest, but you'd pay between 4k and 8k in taxes to leave you with a net of about 17k to spend.
If you wanted to invest in something a little more risky with a better return, then these numbers will change, but the question to ask yourself is "Is the risk of keeping the loan worth the extra 7k of spendable cash each year?"
Good luck with your decision.
If you're looking for an investment, something I've had some success with is Prosper.com -- it's a marketplace that puts people who want to lend in touch with people who want to borrow.
If you sign up through the link below and fund a loan, both you and I will get $25.
http://www.prosper.com/referrals/borrower.aspx?referrer=ahem&utm_source=referrer-ahem&utm_medium=referral-link&utm_content=link&utm_campaign=referrals-borrower |
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