l just got a little M O N E Y

[zelda]

Actually a LOT of money. lt is enough to pay my 4.5% mortgage and make me debt free. My little 2010 Rogue has 60,000 miles and should last another 5 years. The kid is a HS senior and will start college sometime next year. Her grades are 3.0 gpa with the ex's banked child support cks of ten years her ED fund... My home is a modest 2br 2ba w garage built in 2012. A bigger house would be nice but Mom and Dad are getting older. My useless big brother is 48 but still acts 15.
l have a small Army pension and a fairly stable govt job. l don't want or 'need' a man. At my age he would come attached with ex wives and kids. l don't need drama as there is plenty of that at work.
So what do with this money? Pay off the house or invest it?

 

[fiasconva]

Pay off the house and bank the payments you no longer need to make. Burning that mortgage is really a great feeling.

 

[GatorFarmer]

Debt is not per se a bad thing. The key is managing cash flow. Consider what you are paying the bank for the mortgage, then do the math on what you believe the money can generate via investment. Assuming your calculations are correct, it may well be the case that you are farther ahead to invest.

 

[kthom]

Another option to consider and count the dollars and cents on would be for you to bank enough of the money to double up on your house payments (4.5% is not a bad interest rate) which would save you a good bit of interest money and pay off the house much sooner than normal. You'd stil get to take advantage of the deduction for the mortgage interest as well. And then wisely invest the rest and let it earn what it will earn. It's a really nice feeling to have enough money in your mattress to handle any foreseeable unexpected financial requirement without upsetting your normal budgetary requirements. Money ain't making much money anywhere these days anyway, so saving some of that interest plus the tax deduction will probably get you more return than you can get anywhere else, and you'll have the added security of a rainy day fund that's easily available.

 

[Jack Flash]

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...

 

[mojave30cal]

Dave Ramsey would suggest paying off the mortgage and other
debts and become debt free....

 

[Maddog 521]

We are debt free and have been for about 20 years. We sold a house and bought another and paid it off. We really like the situation we're in. Might try talking to a financial adviser and get their opinion, and then mull it over and make a decision. Good luck

 

[A10]

Given the economy, the interest rates, the market volatility, and the fact that housing prices are rising, I'd pay off the mortgage. You never get full deduction for your interest anyway, so you are money ahead really.

Might be time for a nice vacation as, well, then bank the rest.

JMHO......

 

[T-5]

???

What does not needing a Man have to do with anything you need advice for???

 

[arjay]

Depending on what your local housing values are doing,it might be worth buying a rental property or two and let the rent cover the mortgage and taxes.

 

[klondike]

"What does not needing a Man have to do with anything you need advice for???"
T-5 - I suspect that she was bracing for lots of offers.

 

[BigBill]

You still use the mortgage for a tax right off?

If not pay it off.

 

[old bear]

"What does not needing a Man

Guys I'm really disappointed, for a fairly sharp group, none of you have figured out there is a huge difference between Needing and Wanting.

There are a slug of things I want , but very few things I need.

 

[BigBill]

I can understand no drama needed. But a companion to share a ice cream, walk the dog, watch the fireplace and snuggle, cuddle up, with a bowl of popcorn. Maybe share breakfast out or dinner. I think a companion is perfect. For her. No drama, no frills.

 

[H Richard]

It may depend on your age, how close to retirement are you? You definitely want to be debt free before you retire. Most "safe" investments currently aren't realizing 4.5%, (especially after tax), so do a lot of figuring with a "trusted" financial adviser before investing. Another thing is your health, if any health problems arise you want to be debt free.

 

[Comrad]

Pay off the highest interest rate loans first.

Home built in 2012, sounds like a refinance might be in order, I am sure you should be able to get under 4%. Since you are so early in the mortgage the interest deduction is a big help. If anything I would pay some additional principal on the mortgage, your coupon should have a place to add additional principal, that would build you some quick equity/security.

Money on deposit doesn't earn much but I would keep a good portion liquid. If you can tolerate a little risk, a few dollars in a good dividend stock, utilities are good, they aren't going anywhere.

Buy some nice guns too.

 

[Dave_n]

Unless you are in the $120K plus salary bracket, your effective mortgage deduction is roughly 15-18% or lower on the Federal form. Divide last year's federal tax by the gross income figure. That percentage is what your mortgage deduction is approximately worth. Or looked at another way, you pay $5 in to get $1 back.

Pay off the house and do not worry about the "tax deduction". Paid mine off 20 plus years ago and have not filed a Schedule A since then. The standard deduction is now around $13K and I make out each year. Granted PA is not a hard-nosed state for state taxes nor for real estate taxes like the surrounding states, so my tax filings are simple as a result.

The real estate industry does not want people to do the simple mathematics above so that they can keep persuading buyers to "go for more house than they need as the tax deduction will help you survive!" Dave_n

 

[Bahamaroot]

I'd pay off the mortgage. The interest savings and the increase in market value of your home is your investment. I learned a long time ago that your mortgage deduction on your taxes saves you very little in taxes over the standard deduction. Having equity in a home is just as good as having cash in the bank too if you have an emergency.
Being totally debt free the money starts to add up quick for investing and saving for retirement.
Many of the wealthiest people out there started out investing in real estate.

 

[vytoland]

become a life member of the NRA..........donate the rest to the Smith & Wesson Forum

 

[les.b]

If whatever you decide to do involves investing in a new S&W, please post photos. Oh, yeah, I agree with the guys who say pay off the mortgage. I am relatively debt free. Owe nothing but a small credit card debt that I pretty much keep paid off, but use to pay some charges with, just for convenience. Use auto pay on a lot of utility bills and so forth, and cash for other things. Although I still work, I am in higher ed, so am off three months in the summer and a month in the winter. Being debt free and paying bills automatically sure is nice if you like to travel. I can keep track of everything on my smartphone from anywhere in the world, and all of my income sources are auto deposit as well. I set this up this way back when I first traveled to Russia for a few weeks, and realized that I had to depend on my sons to pick up checks and deposit them so I could spend money in another country. Fortunately, I had taken plenty of cash with me. But I digress. Pay off the mortgage , and as another suggests, invest some and keep some where you can access it if you need to. And buy a really nice collectible Smith to share with us.