I have $10K sitting in my saving/rainy day account and I feel like I could be using that money more effectively. I am thinking of spending $5K towards either my Mortgage or towards my IRA.
I currently max my 401k contribution but haven't made an IRA contribution this year or last year. (My IRA balance is at about $26K).
I am paying 4.75% (it is considered an investment property) on my mortgage which stands at ~$220K (30 year, $1420 per month). If I paid the principal down by $5K I'd pay it off 18 months early.
Should I put my money in my IRA which I have neglected the past few years or would my money be better spent towards the principal of my mortgage?