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Low Savings rate with high WAR

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  • #31
    "*If* things go according to plan, we would just pay off the mortgage in 2 years, in 2 chunks of $250k per year, that we would just keep in a savings account. I wouldn’t want the risk of potentially losing the money in the market, plus with such a short period of time, I think we’d end up losing money, right"

    Huh?

    If you're going to throw it at the mortgage, just throw it at the mortgage, don't let 250k languish in a savings account earning 2% while your mortgage is at 3.something%.

    Why would you end up losing $ investing it. You might, but not because you have a 2 year time horizon.

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    • #32




      “Should I pay student loans first even if they are 3.2% fixed vs 5% on the practice loan?”

      “Have your accountant run some numbers and decide.”

      Do people really bother asking an accountant something like that? I guess ever present calculators really have impaired our math abilities.
      Click to expand...


      It may be that simple or it may not be depending on OP's comfort factor and income and tax situation. Only the OP and his/her accountant knows the tax bracket OP is in and the applicability of the itemized deduction phaseout mentioned in my post. Being a math wiz doesn't make one an expert in Taxes.

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      • #33
        Thanks for all the excellent posts guys.

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