Should I pay off my mortgage or keep money invested in stock market?
（I have a 30 year mortgage fixed @ 5.25%… I owe $211K on it. I currently have $530K invested in stock market. As far as risk tolerance in market, I am at higher level….. I am 42 with no other debt and make around $100K a year. What would you do?）
Answer：
Take what would have been your house payment every month and invest.
Its nice to have the tax break on the interest on the mortgage but, You’ll save more if you pay it off. All the tax break is is you dont pay tax’s on the interest you pay the bank. If you paid $1,000.00 a yr in interest and your in the 25% tax bracket. then you dont pay the government $250.00 in tax’s. so, if you dont pay the bank 1,000 then you have to pay the government 250.
I think id rather pay the government 250 and save myself 750.
Dont forget. You have to pay taxes on the money you make investing.
Posted: July 29th, 2010 under US Stock Market.
Tags: invested in stock market, pay off my mortgage