At the end of each month, I usually have about $100 extra, left over, that I don't need to spend on anything with. I want to put that extra money towards building my equity, but I'm not sure where the best place to put it is.
I guess one option is to pay down extra principle on my home loan. I am only paying 5.75% interest, though, and since some of that interest is tax-deductible, would I be better off investing the extra money in mutual funds/stocks? I figured that after subtracting the tax benefits of writing off interest, I'd be saving only about 4.14% annually by putting extra money into my mortgage payments.
So I'm leaning towards investing in stocks/mutual funds, as I think I could get a better annual return than 4.14%. I maxed out my IRA and am putting 6% of my paycheck towards my 401k (which is the max that my company will match). Do you think I should put the money to stocks/mutual funds on my own or used more than 6% of my salary towards my 401k?
2007-02-06
06:04:48
·
8 answers
·
asked by
berman250
2