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Is it generally better to put money towards a 529 college savings plan (my children are ages 4 and 1), or is it better to put the money towards mortgage principle (currently owe about 250k at 4.25% interest, 19 years left on mortgage). Which is generally the better long term investment?
Is it generally better to put money towards a 529 college savings plan (my children are ages 4 and 1), or is it better to put the money towards mortgage principle (currently owe about 250k at 4.25% interest, 19 years left on mortgage). Which is generally the better long term investment?
4.25% loss on interest
Or
9% gain on investments (rough stock market average).
I think even the anti-debt Dave Ramsey puts 529's before paying off mortgages.
College is becoming passe' due to many factors not withstanding the following:
1. They have become a "networked" money pit
2. 70% of students make inappropriate non applicable majors
3. It takes an average of 20 years to pay off college debt unless solid parental/scholarship funded
4. Too many anarchist, far left wing radical, antichrist professors lurking within philosphical influencers
5. Half the subject matter is taught is not applicable to anything life's walk
6. A trade gives a person immediate income with a simple AA degree
7. Disillusionment within the ranks of BS /ME,MS who then seek vague careers
8. Grads welcome to Radio Shack,MacDonalds , Metro Cellular, Walmart, and if really smart TJMax!
9. You must analyze the state of our economy racing to collapse by 2016 . The present market is
a manufactured illusion orchestrated by spin doctors ,lies, corruption, in the face of bankruptcy!
MORTGAGE!
How is your reitrment plan? Do you know how much income you will need at retirement? Do you know how much you will have saved to generate that income? And are you on track to meet those figures?
How is your reitrment plan? Do you know how much income you will need at retirement? Do you know how much you will have saved to generate that income? And are you on track to meet those figures?
If you can answer these then maybe 529 it is
Retirement plan is good, I'm pretty much maxed out on my 401k contributions at this point. Since I'm only in my late 30's I have no idea how much income I'll need at retirement. Assuming I'm 30 years away there is so much that can change between now and then.
College is becoming passe' due to many factors not withstanding the following:
1. They have become a "networked" money pit
2. 70% of students make inappropriate non applicable majors
3. It takes an average of 20 years to pay off college debt unless solid parental/scholarship funded 4. Too many anarchist, far left wing radical, antichrist professors lurking within philosphical influencers
5. Half the subject matter is taught is not applicable to anything life's walk
6. A trade gives a person immediate income with a simple AA degree
7. Disillusionment within the ranks of BS /ME,MS who then seek vague careers
8. Grads welcome to Radio Shack,MacDonalds , Metro Cellular, Walmart, and if really smart TJMax!
9. You must analyze the state of our economy racing to collapse by 2016 . The present market is
a manufactured illusion orchestrated by spin doctors ,lies, corruption, in the face of bankruptcy!
MORTGAGE!
Retirement plan is good, I'm pretty much maxed out on my 401k contributions at this point. Since I'm only in my late 30's I have no idea how much income I'll need at retirement. Assuming I'm 30 years away there is so much that can change between now and then.
I max out two 401ks annually and two roths in and additional taxable investments to meet/exceed my savings goals. You really should work your numbers out first and while it is a long time until you reach retirement that IMO should be a priority, even if it's funding a Roth in your name before a 529 and you could still use the Roth contributions to pay for your child's college education or anything for that matter
Why not refinance that mortgage to a 15-year fixed at around 3% and max out the 529 plan? You'd cut the remaining term to 15 years so that the younger one's school could be cash-flowed, and the 529 can pay for the older one. You'll save quite a lot on interest without sacrificing much investment capital. Win-win.
Why not refinance that mortgage to a 15-year fixed at around 3% and max out the 529 plan? You'd cut the remaining term to 15 years so that the younger one's school could be cash-flowed, and the 529 can pay for the older one. You'll save quite a lot on interest without sacrificing much investment capital. Win-win.
I'd probably do that refi as well although the payment would still go up
A 200k 30 year mortgage at 4.25 11 years in still has a balance of 153k or so and a payment of 983.00 a refi of 153k to a 15 year at 3% would run 1056 a month but kills 4 years without taking into account they closing cost
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