This Couple Can't Decide Between Paying Off The Mortgage Early Or Investing Their Money Into The Stock Market
Paying off your mortgage is a great achievement, and it also frees you from the largest monthly expenses you will ever have to face. One couple in their 50s has...
This article has been summarized and translated using AI to help you practice reading and comprehension. While we strive for accuracy, some nuances may be lost in translation.
A couple in their 50s is trying to decide how to use an extra $500 monthly - either paying down their mortgage or investing in the stock market. They currently have a 30-year mortgage at 3.55% APR, which they plan to pay off in 11 years, and have already saved $1.6 million for retirement. Reddit users offered different advice.
Some recommended paying off the mortgage completely first, arguing that this reduces financial uncertainty as they approach retirement. Eliminating mortgage payments creates more flexibility and security, especially if they face job loss, health issues, or market problems. Others suggested a balanced approach: splitting the $500 between mortgage payments ($250) and investments ($250).
This strategy simultaneously reduces debt while building their investment portfolio. Important factors include minimizing mortgage interest, reducing monthly expenses, maintaining investment growth, and preparing for potential financial challenges. At their age, financial stability and risk management are crucial considerations.
Original Article
yahoo.comhttps://finance.yahoo.com/news/couple-cant-decide-between-paying-010116801.html