With the uncertainty of Covid, I'm coming back around to consider paying off more (or all?) of my mortgage. I (33 years old) think the short version is:
assets:
~$25k in cash between CD, savings and checking accounts
~$95k in 401k (about half traditional funds (currently doing this), half Roth)
~$35k in Roth IRA
~$20k in brokerage -previously backed some of this into cash which did cost me some in April
~$10k in HSA
mortgage:
~$30k at 3.75%. I've already recast it so the monthly payment is more insurance+tax than principle+interest.
My fear is that the market is not going to return 3.75% for who-knows-how-long, so I'm considering moving some extent of my brokerage funds as principle payments. I could probably stand to do that with some of my cash too, as I have ~18 months of spending accounted for - and a job that I would consider stable (knocks on wood!). If I did this, I will leave the 401k unchanged and adjust Roth IRA allocations so I'm overall ~30% bonds.
I don't know if my budget would impact your comments, but here that is just in case:
Does my line of thinking make sense: I'll keep ~$140k riding in the market, and "earn" 3.75% on ~30k to eliminate mortgage?