No.
Put the amount of your house payment in your 401k.
I strongly to encourage you to put something in the 401k. Even if it's only 1%. Will $15 bucks a week kill your budget?
I thought the limit was like 18k?
Put the rest in your roth IRA.
Then put some in Roth IRA, the rest have fun with.
That limit is 6k right now, I think
Running out of tax shelters for all your extra money is a nice problem to have....
I guess I'm just not convcinced by this strategy. I feel like paying extra on my mortgage gets me a guaranteed 4.25% return on my money. What kind of returns am I going to get with the 401k......
Can't you do 1%? And next raise you get make it 2%?
Ya I could, I could easily max out 401k and Roth.
Not asking you to Max it out. Just put a little something away .
There's nothing inherently wrong with that because as you said paying down interest bearing debt is a guaranteed return on your investment. And once you're debt free there are certainly other options, you could continue to buy more properties and turn them into rental units for instance (I know drivers who do this). But if you are going to invest that extra money then the 401k is clearly one of the best options both for the low fees and because it functions as a tax shelter.
But let's say my house was paid off..... and I could take out an equity loan at 4.25 points and invest that money, should I do it? Seems kind of crazy. So why would I invest money now when I'm paying 4.25 on the mortgage.....
I understand about wanting to be debt free. It's a fantastic feeling
You trying to wear me down IVE!.... I'm a stubborn bastard.
I wrote the book on being a stubborn SOB
Well I'll admit you got me looking into it.
That wouldn't apply to you. Unless you are making over 100+k by yourself and maxing out your 401k
