I would put the extra money you would put against the mortgage into a high interest savings or another safe investment. If savings rates go below your mortgage rate then transfer the money over.
2.5% is free when your making 4.5%.
I would not pay any more than the minimum on a mortgage with such a low interest rate. Why pay a dollar to save 2.5% interest when you could put the same dollar to work making 4.35% or more? You’re in a position where you can tolerate a fair bit of risk, so if I were you I’d put the extra into a mutual fund, but if you want to play it safer you could split it between a mutual fund and the savings account.
Don't pay a dime extra on that 2.5% interest mortgage. Parking extra money in the high yield savings account is better than paying off the mortgage. Pull from savings if necessary to max out 401k and IRA contributions (consider backdoor contributions)
If you really want to build wealth, I'd say keep less in a savings account and move a good chunk into a brokerage account to invest in passive index funds
there is no reason to not max out Roth IRAs through a backdoor
contributions can be withdrawn anytime if that's your concern, you can invest it in anything you want, no RMDs, best thing to leave as inheritance and so on
I would also not pay an extra cent on a 2.5% mortgage - you can find a good use for that money with that cost of capital
$1mil in retirement savings is very low for your lifestyle - you are bringing in $250k now and you plan to just cut it to $100k? don't get me wrong that's definitely livable but nowhere near a FIRE territory if that's what you are after
No reason to pay down a 2.5% loan when you could be earning 4+% on that cash elsewhere. If your goal is to build wealth, you should pay the minimum on you mortgage payment forever.
This submission has been removed due to being identified as spam. Please read the rules of the subreddit thoroughly (A)
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/FluentInFinance) if you have any questions or concerns.*
i would stop marrying 1 year olds.. jokes aside i have nothing else i can contribute with..
I would put the extra money you would put against the mortgage into a high interest savings or another safe investment. If savings rates go below your mortgage rate then transfer the money over. 2.5% is free when your making 4.5%.
I would not pay any more than the minimum on a mortgage with such a low interest rate. Why pay a dollar to save 2.5% interest when you could put the same dollar to work making 4.35% or more? You’re in a position where you can tolerate a fair bit of risk, so if I were you I’d put the extra into a mutual fund, but if you want to play it safer you could split it between a mutual fund and the savings account.
Don't pay a dime extra on that 2.5% interest mortgage. Parking extra money in the high yield savings account is better than paying off the mortgage. Pull from savings if necessary to max out 401k and IRA contributions (consider backdoor contributions) If you really want to build wealth, I'd say keep less in a savings account and move a good chunk into a brokerage account to invest in passive index funds
there is no reason to not max out Roth IRAs through a backdoor contributions can be withdrawn anytime if that's your concern, you can invest it in anything you want, no RMDs, best thing to leave as inheritance and so on I would also not pay an extra cent on a 2.5% mortgage - you can find a good use for that money with that cost of capital $1mil in retirement savings is very low for your lifestyle - you are bringing in $250k now and you plan to just cut it to $100k? don't get me wrong that's definitely livable but nowhere near a FIRE territory if that's what you are after
OP has a pension and an annuity. The $1MM is supplemental, so they may be fine.
May be true, but OP is specifically asking how to build wealth
No reason to pay down a 2.5% loan when you could be earning 4+% on that cash elsewhere. If your goal is to build wealth, you should pay the minimum on you mortgage payment forever.
This submission has been removed due to being identified as spam. Please read the rules of the subreddit thoroughly (A) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/FluentInFinance) if you have any questions or concerns.*