|
|
| *Loan,banking and credit>>>deferred tax |
Shall I pay my house faster, or take the extra payments and invest them in a qualified tax deferred IRA? |
Shall I pay my house faster, or take the extra payments and invest them in a qualified tax deferred IRA? I agree with Dave s - add to the retirement fund. The sooner you invest and the longer you allow the money to compound, the wealthier you will be at retirement. Plus, you get to keep your tax breaks on the housing payments. I would pay the house faster that way you can re-finance and drop your payments and get the house paid off even faster. I dont know about you but I hate the mortgage looming over my head every month. Then when the house is paid or almost paid then you can invest in other oppotunuties Do both if you can. You can set up your house payment to pay as little as $50 a month on principal and the reduction in total payout will be amazing. Make sure though that you are making an extra payment on principal only. A Roth IRA is a great investment in the future. I found T Rowe Price and Vanguard to be excellent funds. You can start with a small amount of money and watch it grow. Always, always pay the house off first! Those investments are stilling going to be there after the house is paid for. Plus it's one less thing to worry about, right? And that's what counts most in financial life "peace of mind." I would probably favour the IRA rather then paying down the house faster. The reason for this is an investment in an IRA grows tax deffered until retirement, whereas mortgage interest is tax deductable. However, in the end, it all depends what you feel comfortable with as if you lose your job, you will not be able to access the IRA money but can access the equity you have in your home |
| Tags |
| sales tax service tax state taxes fair tax federal tax deferred tax property insurance renters insurance social insurance state insurance |
SiteMap--Copyright/IP Policy--Contact Webmaster For personal non-commercial use only. |