2007-01-17 12:37:24 · 12 answers · asked by plthaxer@yahoo.com 1 in Business & Finance ➔ Personal Finance
it depends on the interest rate on the house, and what would make you feel better, for me personally even if i thought i could possibly get a higher return investing i would pay off my house, it would feel so great to be totally debt free, and free up 1k a month that i would then invest
2007-01-17 12:43:27 · answer #1 · answered by swenjj 4 · 0⤊ 0⤋
I would probably pay off the house but make sure you invest that same money you would have been paying per month. Stock market can return 10% annually, or 5 or 14, so all of life is a risk. Depends how you view the world a little bit too. Paying off the house is the ultimate protection against calamity, like a depression. But it may be also that if you have a low interest rate and fixed on the house, if you have cheap money borrowed, take it, and invest the new lump sum. Again, it really does depend on your view of risk in life.
2007-01-17 12:56:15 · answer #2 · answered by The Scorpion 6 · 0⤊ 0⤋
if you have a reasonable interest rate say 7% or less, I would not pay off the mortgage, with investing, on average you make 10% a year in the stock market, some years more and some years you lose some money. I would spread what ever money you have over 3 or 4 good mutual funds and just try to leave it alone and pretend you don't even have the money. start a roth ira if you don't have one already. and each year put the max amount into that account. call vanguard and they will help you out. or go to your local bank and talk to their investment rep, or go and see an edward jones broker or someone like that with some ethics, don't invest in crap that you don't understand, and you don't have to invest it all at one time, put most of it in a money market account and invest a little at a time out of there. don't lend the money to your friends for their crazy business ideas because you won't ever see it again.
2007-01-17 13:04:23 · answer #3 · answered by besthusbandever 4 · 0⤊ 0⤋
Invest. - but invest wisely!
I would spend a little of that money on a finacial advisor - to figure out you needs, and plan on what you want for your future. For example, how much you want to keep as cash ready, and how much for IRA.
Roth IRA are particularly attractive - look into them.
Keep an eye on how your investments are doing (online), and make sure that you have the option to change % options between investments as the market charges.
You may want to use some money to refinance you house - to lower you payments, but it will cost you some of the money.
I wish I were you!
2007-01-17 12:49:38 · answer #4 · answered by Dr Dave P 7 · 0⤊ 0⤋
Money is only pieces of paper and metal disks. It is what we what money for is what makes money so valuable. Do you want to quit your job and travel full time or do you want to keep working and retire in 10 years in the future. First you need to decide what you want from the money. If you want to quit your job you need to invest for income. Take the money and invest into income producing investments, preferred stock, bonds, etc.
If you want to keep working take the money and invest in grow since your current income will allow you to pay your current monthly debt obligation.
I would pay down a portion of your mortage and get a line of credit on the additonal equity. You don'y pay any interest or payments until you tap the equity loan. This will reduce your current payment and give you time to truly decide what you what the money to do for you. Good Luck.
You can always take the money and invest in the market in the future. Take time and really think what this money truly means for you.
2007-01-17 13:09:01 · answer #5 · answered by upnorthbeachbum 1 · 0⤊ 0⤋
Having your home owned outright is one of the best financial desicions you can make for yourself. Interest rate here makes no difference, security DOES !!
Pay it off and then with the money each month that you WERE using towards your mortgage, you can now invest in numerous ways for the future.
2007-01-17 13:00:20 · answer #6 · answered by Kitty 6 · 0⤊ 0⤋
Do both. Pay off the house then use the equity to invest for the future.
2007-01-17 12:45:43 · answer #7 · answered by Teacher 6 · 0⤊ 0⤋
do not pay off house immediately. invest most of your money but be sure to have enough left to cover next month\s due for the house.
2007-01-17 21:02:57 · answer #8 · answered by jasmine19805 2 · 0⤊ 0⤋
This would depend on a few things-- how strapped you are for cash, how high your interest rate is on your home, and if you have time to look at the market on a daily basis or are you just going to hand over the cash to a broker. You should be able to get about 10% on average, if you are good higher.
2007-01-17 12:44:50 · answer #9 · answered by babalooie21204 2 · 0⤊ 0⤋
If you can earn more interest on the money than the interest you are paying on your home, then you should invest.
If not, then you should pay off your house.
2007-01-17 12:52:05 · answer #10 · answered by Dana Katherine 4 · 0⤊ 0⤋