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Tag Archives: making extra mortgage payments

Why We Aren’t Paying Off the Mortgage Too Early

After paying off our credit cards, we needed a new debt goal to focus on. When you pay off a bunch of debt, it makes you feel like you can do anything, so we set out to pay off our mortgage early. The idea of living in a completely paid for home is super appealing, however, after looking at 2013 and beyond, we’ve decided that maybe putting all our energy into the mortgage payoff is not the best use of our money. Yep, we’ve flip flopped like a politician, and here’s why. It makes more sense to invest in my solo 401k After selling my practice, I set up a solo 401k through Vanguard. The costs are very low, and the interest over time should be much greater than the guaranteed 3.25% (current mortgage rate) we’ll get from paying off our mortgage. It will also save a ton in taxes. If I can invest most of my 1099 income, it will decrease our tax bill by thousands of dollars. We can use Jim’s and my W2 income for living expenses. We Have Rentals With purchasing a commercial building at the end of last year, we now have more potential expenses. ...

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