I'm on the cusp of maxing out my IRA/401k. What should I do with the rest of my savings?

Pay down mortgage (3%)
Pay down car loan (0.9%)
529 plans for the kids
Taxable VTSAX
Stuff it under the mattress

Author Topic: What should I buy with my extra money?  (Read 1875 times)


  • Handlebar Stache
  • *****
  • Posts: 1389
What should I buy with my extra money?
« on: February 12, 2015, 08:46:10 PM »
Additional information:
  • There's no tax advantage to the mortgage. I don't pay enough in interest to beat the standard deduction.
  • If I pay off the car, I could increase my insurance deductible, saving me another $100/year.
  • I know there are lots of different viewpoints on paying for kids' college. My grandparents paid for my parents with the understanding they'd pay for me and my siblings, and I'm going to pay for my kids to pay them back.
So what should I do?


  • Bristles
  • ***
  • Posts: 401
  • Location: NYC
Re: What should I buy with my extra money?
« Reply #1 on: February 13, 2015, 08:58:43 AM »
If paying for some/all of college is important to you, and the 529 plan is the one your state offers and you get some kind of state tax benefit?  529 by a mile.  The tax break and tax-free growth will be a boon to your 'stash's tax efficiency.

If you want more flexibility on how you use the money and / or your state doesn't offer any tax benefit for their 529 plan, go with the taxable index fund.