What to do with surplus?

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    • #256463

      Congrats on getting out of debt!

      I don’t know what the interest rate on your home is,

      but if it is low, you would be better off throwing the

      surplus into the IRA. With compounding interest at

      your age, you should come out WAY ahead.


      — Shawn <shawnonline@sbcglobal.net> wrote:

      > Hi I’m new and my name is Shawn. I’m fairly good

      > with budgeting.


      > I have gotten out of all car debt. I only have

      > house debt now.


      > I have have 3 months emergency expenses money in an

      > ING account, but wondering what to do with my

      > surplus after this.


      > I’m 33 years old.


      > I am doing my 401K at 6% and then am putting in a

      > certain amount of money into a “CAR FUND” so I can

      > pay for my next car with cash.


      > All other surplus I am thinking of putting into

      > HOUSE payoff, however I don’t have a ROTH IRA.


      > Have any of you put all of your other surplus into

      > HOUSE payoff? Based on what I’m seeing I could have

      > my house paid off in 7-10 years if I do this.


      > I also have a desire to put the surplus into a ROTH

      > IRA, but instead thinking it would be much better to

      > be about 40 years old and have no morgage then I can

      > be more open for giving as well as retirement

      > saving.


      > Tough stuff because crunching the numbers seem to

      > suggest Roth IRA is better, but I have such a strong

      > desire to pay off the house to be rid of all debt.


      > Thanks in advance,

      > Shawn



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