Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Brown Cafe UPS Forum
UPS Discussions
401k roth
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="UpstateNYUPSer(Ret)" data-source="post: 875589" data-attributes="member: 12570"><p>I have been thinking of one possible use for my Roth 401k and would like advice on whether you think this is a good idea or not. I recently refinanced my mortgage from a 6.125% 30 yr fixed (VA) to a 4.5% 15 yr fixed (VA) with a current balance of about $79K. I plan to resume contributions to my 401k in January of 2012 as I will finally be debt free. I am thinking of using my Roth 401k as a kind of "forced" savings account with the purpose of paying off my mortgage when I turn 59 1/2. I will continue to make my monthly mortgage payments ($860) between now and then which should bring the balance down to $35-40K by the time I retire in 2019. If I contribute 25%, which is roughly $350, per week, I will have $127,400 in principal in the account in 7 years, which would be more than enough to pay off the mortgage.</p><p></p><p>Does this sound like a good idea or should I simply make additonal principal payments? I like the Roth option as I will (hopefully) make money on my investments whereas if I simply make additonal principal payments I will be saving on interest payments.</p><p></p><p>Any thoughts?</p></blockquote><p></p>
[QUOTE="UpstateNYUPSer(Ret), post: 875589, member: 12570"] I have been thinking of one possible use for my Roth 401k and would like advice on whether you think this is a good idea or not. I recently refinanced my mortgage from a 6.125% 30 yr fixed (VA) to a 4.5% 15 yr fixed (VA) with a current balance of about $79K. I plan to resume contributions to my 401k in January of 2012 as I will finally be debt free. I am thinking of using my Roth 401k as a kind of "forced" savings account with the purpose of paying off my mortgage when I turn 59 1/2. I will continue to make my monthly mortgage payments ($860) between now and then which should bring the balance down to $35-40K by the time I retire in 2019. If I contribute 25%, which is roughly $350, per week, I will have $127,400 in principal in the account in 7 years, which would be more than enough to pay off the mortgage. Does this sound like a good idea or should I simply make additonal principal payments? I like the Roth option as I will (hopefully) make money on my investments whereas if I simply make additonal principal payments I will be saving on interest payments. Any thoughts? [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
Brown Cafe UPS Forum
UPS Discussions
401k roth
Top