Thank you all for your kind words. I appreciate it!
So far, you have saved $49K in retirement accounts. Not sure how long you have been saving, every year you should be able to dump $47K into retirement accounts in order to max it (dual incomes with 2 401ks and 2 IRAs). If you do not max it any year, that tax advantaged space is gone.
While I agree that there is no point second guessing, try to maximize these accounts in the future. If you are young, there is a lot of time.
I am 33 years old. Will turn 34 next month. We are not maximizing my wife's 401k. We are contributing the match - 6%. I will look into changing that. She does not have a Roth IRA account. Her retirement is a little bit more complicated. She wants us to move to Europe, and I am not sure if we should be opening a retirement account for her as well because we are going to need some cash if we are going to move out of the US. So not entirely sure what to do about this at the moment. I am going to make a decision soon.
The math in every scenario for me favors maxing retirement accounts before paying any extra towards mortgage principal.
I read quite a bit about making extra payments vs. paying the whole thing off. There is some very good arguments to be made for not making extra payments and investing it instead. I agree with that. However, it made absolutely no financial sense to have that money sit in a CD and earn less interest than my mortgage. Therefore my options were to either invest the money in a taxable account, or pay off the mortgage. I choose the later. As I said in my previous posts...I just did not have the course to dump all the money in the stock market.
Congratulations!! That's awesome!
I so remember that feeling, when the mortgage was finally paid off!!
As others have said now you really can accelerate your savings!
What a great situation to be in !
Thank you very much. I absolutely intend to do that. Still working on a savings plan. I have come up with a few questions regarding the best way to proceed. I will be posting about it soon.
The only scenarios that might provide me financial motivation to pay down a mortgage is:
- Risk tolerance is approaching zero. Possibly already retired and confident of stable (ie non bubbling) local RE market.
- Already over target savings and just don't care? (All investment points are moot).
I am not quite sure I understood that. I mean I get the part that the home is an investment in a way, but even if the housing market were to absolutely tank tomorrow, it would only make a difference if I were selling it, right? I mean as long as I have a job, and I am happy staying where I am, this wouldn't affect me, right?
Of course, my home dropping in value is not a good thing, but if I wasn't investing the money anyway, this was the next best thing to do in my situation. At least that's the way it seemed to me.