l just got a little M O N E Y

[HOUSTON RICK]

Invest and save, it will disappear into college and related expenses faster than you think. Paying things off at 4.5% when you can make 8-10% on it and remain flexible is overrated IMHO. Who knows you may want to sell and disappear into the wilderness someday or follow a rock and roll band on the road.

 

[LostintheOzone]

Don't pay off your mortgage just yet. Get some financial advice. A good adviser will look at your particular situation and diversify your wealth according to what you are comfortable with. A lot of it depends on how secure your job is and your age. He may advise you to refinance to have your mortgage payed off by the time you retire. That may mean increasing your mortgage payments substantially. He may also advise you to pay off your mortgage. Way too many variables here to give you advice. My investments always carried a little more risk then most people would like because I had a secure job. I worked for a growing county for 30 years as a professional in a civil engineering group. I retired early. It really makes a difference.

Personally I like low risk market investments, but my situation is totally different than the next person.

For sure keep a years income in savings for the unexpected.

 

[BAM-BAM]

Don't advertise that you just came into some money on the Internet. Seek professional help.

Keep in mind they will do their best to make some of your money theirs.....

Right now the markets are volatile...... CD's pay next to nothing..... gold was at $1700 now $1150.........

What's "a lot " of money ? Don't answer.....

My best wild *** guess is that unless you overpaid for your house; paying off the house and banking the future mortgage payments......for a future investment ...... might be a fairly safe and effective route to take........

 

[rburg]

But financial advisors will tell you that is not the best thing to do.

Of course they suggest that, and in the next breath they want you to let them invest it for you.

Rule #1, trust no one. If you're in doubt, study the problem for a while. Also part of rule #1 is don't let anyone stamped you into anything. About all we know for sure is that the investment climate won't look the same in 2 years.

Next thing is baskets. Don't put all your eggs in one. Anyone who suggests that probably isn't your friend. But it doesn't matter because you don't need friends, you just need good advice.

But you're lucky, Bernie Madoff is on vacation.

 

[68sixspeed]

As others have said, pay the house off, I was in your situation a few years ago and did it, got rid of all debt, then it is amazingly easy to save from there. Take what you would have paid in the mortage before, or at least what you paid monthly in interest and put that into investments. But if you don't have a year cushion fund outside of the market, do that in something liquid like a 1% Ally/ING type FDIC savings account. (rainy day fund), then start investing more for retirement. Roth or IRA depending on your income, max that out, then everything else into a mix of short and longer term investments, mutual funds etc. Don't forget that once the house is gone you can buy a new gun every month or two and you are still ahead of what you would have wasted on mortgage interest.

 

[Grey.Ghost]

What 68sixspeed said ^^^

 

[GreyOwl]

Congratulations on being able to bank all the child support for your daughter's education. That is a great accomplishment, which shows you have a good financial outlook. Add my vote for paying off the mortgage early and then take some time to decide which way to go with the rest.

 

[Engineer1911]

Personal experience

Condition #1: Interest deduction of ~$9,000 per year + other stuff totaled about $5,000 more than the Standard Deduction.

Condition #2: No more interest deduction (it's a long story), no more itemized deductions, and using the Standard Deduction.


I can assure sure with absolute certainty that we have more money to spend OUR way than we did making mortgage payments and "saving" all those tax dollars. I will put $900.00 'after tax' money in my pocket every month over saving $500 per year on income tax.

Now paying income tax on 85% of my social security because my wife works (and is younger than me) is a real kick in the check book.

 

[gregintenn]

Answer this question.

If your house was paid for today, would you go get a mortgage for the amount of money you are receiving in order to invest it?

If your answer is "no", and I'll bet it is, pay off the house.

My house is paid for, and my old house payment plus more is invested monthly.

If you regret being debt free, you'll have no trouble getting back into debt. Why not give it a try?

 

[CAJUNLAWYER]

People always want to pay off their mortgage early if they come into some money. I admit, it does feel good. But financial advisors will tell you that is not the best thing to do. You would be better off investing the money wisely and keeping your mortgage tax deduction...

In order to take the tax deduction on the mortgage interest you have to itemize. Which means that you start from zero on the deduction column rather than the $9250 ( I think) you get for head of household. That means you are already getting a mortgage deduction of 9250 even if you don't have a mortgage. The other allowable deductions that you can take that would affect you are sundry but you get the point-unless you have gambling losses, large medical expenses, moving costs related to business or some other large allowable deductions-I would pay off the mortgage and bank future mortgage payments. Remember that in order to get a deduction you have to first spend the money. Not spending the money in the first place usually nets you more than spending the money and taking the deduction. Deductions are not dollar for dollar like a tax credit is. Most people forget that.

 

[S&WForty]

Most of us are starting to sound the same give or take a few words, but here's another that wholeheartedly says pay off the mortgage. Then start saving or investing your monthly mortgage payment. Skip that every few months to buy a new firearm.

 

[T-5]

Zelda,
Thank you for your service.