I'm in my early 30s. I have like 28 years left on my mortgage, but in a month or two, I should have enough saved up that I can pay the whole remaining balance off all at once. Is that a bad idea? Some people are telling me I should put the money in an IRA or something. I make around $144k USD per year, before taxes.
>>34631194>Is that a bad idea?Paying all of it right now would decrease the interest you pay on your mortgage? Is the decrease in interest more than you could get by investing this money on an Index Fund and let it sit there for 28 years? After paying the mortgage fully, will you have a reserve of money for emergencies in the off chance you lose your job, break an arm, or anything like that? These are questions that should help you arrive at a decision. Think this through. You can type it here and if you have anymore questions maybe I can advise you.
>>34631251I can't remember what the interest rate is, off the top of my head. Something like 6 or 7 percent. Afterwards, I'll still have around 8 grand in savings, but practically nothing in my checking account.
>>34631251>muh index fundIf index fund is so reliable why is it worth anything at all? Why isn't literally everybody doing it? And indeed more people are doing it so how can you speculate what it will be returning in 28 years when the amount of leeches increments exponentially every year from everyone suggesting to do index funds?>>34631682Pay it all at once. Never take money borrowed, unless your trade is to learn where money is returned at what interest so you can identify sources to ponzi till equilibrium.
>>34631682>Something like 6 or 7 percentA year? That's less than you would make through an index fund. The S&P 500 gives approximately 10% a year. NASDAQ-100 13% to 15% a year.>>34631723>If index fund is so reliable why is it worth anything at all?If they weren't worth it, they wouldn't give you 10% yield yearly. People buy them when they don't know how to invest, like you. You clearly don't know what you're talking about, if you buy anything else other than index funds you'll lose money. Because you don't know finance. You think that watching a dozen of YouTube channels makes you a guru, go back to >>>/biz/, please.>Why isn't literally everybody doing it?>And indeed more people are doingYour statements contradict themselves.>how can you speculate what it will be returning in 28 years >muuuh speculationHonest question, how are you able to solve the captcha?
>>34631194We paid our house off a couple years ago and the peace of mind knowing it can't be taken is much more valuable than the 1-2% difference between an investment account and the mortgage payment.
>>34631194if you were going to try grow that sum of money before paying shit off might as well yolo 90% of it on red, or the latest thing orange man is pumping (currently spacexai or whatever the fuck they're calling this financial abomination)
>>34631194Don't ever listen to this commentor. >>34632385 He doesn't know what he is talking about. Paying the mortgage is a good alternative, but don't buy things you don't know why you should be buying.
>>34631194You can do both. Pay the house off and put the savings in an IRA with whatever funds float your boat. There are strategic reasons to not pay off the house buy you can always take out another mortgage if you develop one of those strategies. The nest logical step would be to take advantage of all the borrowing ability it gives you to put hella money on a down for a rental so that you can charge an appropriate amount that it pays for itself.
>>34631194A home is an asset. Right now your mortgage lender gets first dibs. The home I bought below market value in a great neighborhood continues to appreciate just like any type of investment and if I sale its all mine. I bought below market because the former owner had a mortgage and took out a second on the equity in that home. Market took a downturn they could not make both mortgage payments and took a loss to get out of all that debt. The mortgage companies got theirs in full.Anyway you obviously are already a saver so pay down the debt first. That is your appreciable asset, all yours. Then you can look for other places to put your money. Since you are early 30's you can be a bit more aggressive IF you have an emergency fund of cash. That way when the market goes up you don't care and when it goes down you don't care since you are investing for the long haul. Have an asset mix to build wealth and live on your salary BUT continue to pay yourself first. Not a bank.
>>34632394it's the theoretically safe option, i said "if", and you didn't really say anything because you're a midwit
>>34632446>touched a nerve coz you are a dumbasslololololI'm saying to buy spacex which is EVEN MORE overvalued.. and CLIMBING
>>34632460I deleted my comment, I'll just ignore you from now on. I don't think I should discuss stocks with a downie.>muhhh, buy space X stockLFMAO
>>34632470>said fuckall and even retracted someyou're a big giant pussyI accept your concession
in the general case yes paying it off now is worse than waiting. for various reasons but primarily inflation. however you need to give us more details of how much it costs, your income, and we can help more
>>34632372Bruh, imagine I'm some youtube finance guru bullshit. I tell you "DUDE, COME BUY THESE HOUSES, MARKETS GOING TO THE MOOOON". Then millions buy that shit, and the last guys to jump wagon don't get their 10% return anymore, they get some shit like 6%, 3%, better off with a shitty long term deposit. How is Index fund so perfectly reliably stable that it can allow for an infinite number of leeches coming in waves after every youtube influencer tells them to do those? Genuinely asking here, I'm skeptical and don't know how that market can't get saturated.
>>34633531Look, index fund is not purely speculation. How is that so hard for you to understand? It's not some AI or tech bubble bullshit company. Index fund investing is primarily investing in productive assets that generate real economic value, with a secondary speculative component arising from how the market prices those assets.As for>finance gurusThey don't recommend index funds though. They tell you to buy shitcoins, to buy tech company stocks, or to buy penny stocks saying it's cheap but never explaining why. Then the price goes down, and you're fucked. Stuck with an asset you will never be able to sell at the price you bought. They don't recommend index funds because everyone wants to get rich right now at this instant, and let me tell you, this won't happen, you don't turn into a millionaire out of nowhere unless someone gifts you one million dollars.
>>34633531>I'm skeptical and don't know how that market can't get saturated.Unless a crisis at the level of 1929 happens, that won't happen. But hey, pay your mortgage, considering there's an AI bubble, that could pop out of nowhere, and the fact that people are pricing Elon's stock 100x the price it should, an economic crisis could really happen, soon, 2 more weeks.
>>34631194its not a bad idea, but its suboptimal. You can do better.If your interest rate is <3%, invest the cash.
>>34631194i glanced through the thread but most everyone seems to be a retard, personally, i'd pay it off ASAP.get out of debt slavery, then you are a free man, or as free as you can be! it's a weight off your shoulders to know the place is yours.rich people don't get mortgages btw, they buy the place outright. there's barely any good reason for a normal person to be in debt unless you are doing some kind of financial fuckery.
