I have an 11 year old, and have 10,000 saved for college in 529. I am currently applying extra principal toward my mortgage (300), saving 300 for college and putting about 1100 a month in a 401K. should i pool all this money to pay off mortgage by 2013 and use the money i was paying for Principal and interest (1300) for college or should I just continue to save the way I am saving.
2006-06-11 09:10:21 · 4 answers · asked by andrewilliano 2 in Business & Finance ➔ Personal Finance
interest rate on my house is 5.625.
2006-06-11 10:16:21 · update #1
The interest rate on the house is low. I would not be in a rush to pay off the cheap loan that you are able to write off the interest payments on your tax return. It sounds like you have already established a great plan. Stick to it and your future will be solid.
For additional info on 529s - http://www.529s.com
2006-06-12 03:42:05 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You seem to be saving quite well already. If paying down your house faster makes you feel better, do it. Same goes with the 529. Though if you don't have a cash emergency fund (money market) then build one.
Are you on track for retirement? If not, increase the 401k. Your child can obtain a loan for college, you can't obtain a loan for retirement.
2006-06-13 15:58:36 · answer #2 · answered by Thundercat 7 · 0⤊ 0⤋
depends what the interest rate on your house is and if you have an APR. What is tuition etc going to be in 8 years?
2006-06-11 16:52:15 · answer #3 · answered by sjsshuswap 2 · 0⤊ 0⤋
It sounds as though you're doing well enough as it is. If the plan is working well, why dink with it? If you have any doubts, find someone who can give you good, I emphasize good, financial counseling.
2006-06-11 16:15:20 · answer #4 · answered by quietwalker 5 · 0⤊ 0⤋