Hi i am still on the fence , i am bit of conservative side ..actully a lot on conservative side always.I have 330 k in mortgage now ( paid off 160 k recently as lump sum off the original 490 ). I have 270 k in cash which i can either invest in real estate or pay off mortgage ...but that will delay my investing by 3 more years I think to collect down payment on house again . please advice...
mortgage 330 k
cash saving 270 k
401 k maxing out
no other debt
What are your interest rates on the mortgage vs savings?
Congrats on the large chunk of cash!
You can find many debates on the pay mtg vs invest.
Obviously on this thread, most are focusing on mortgage payoff.
Mathamatically investing in balanced ETFs should pay off better in the long run than rushing to pay your mortgage.
But saving does not equal investing. It appears that you are saving not investing.
If you are too conservative to invest I would pay off the mortgage first.
For the ultra conservative investor that is what you should do.
That is what I did with my primary residence. Now I am starting to invest in Vanguard and plan to slowly pay the mtg on a rental property.
Since you have a large chunk of cash you may want to "invest" a bit.
1) keep a good emergency fund ~20K (3-6 months spending, this should be your only cash savings)
2) pay a large chunk of the mortgage ~150-240K (how much can you prepay without being hit with penalty fees?)
3) start investing with a comfortable amount, for you this may be 10-100K. Research your low fee options & Max out your tax advantaged accounts.
If you are not quite sure about how to split your money in 2 & 3 hang on to more cash and decide what to do with it in 3-6 months.
Don't listen to anyone who says invest it all today. That is mathamatically correct but you mentioned you are very conservative and probably need to learn a lot more before throwing all that cash into investments.