I am 65 year old, semiretired. I made $10K so far this year and do not need this $( my wife is still working).Should I invest this 10K in IRA, pay off my mortgage @ 5% or dip into my 401K to pay off the mortgage
198727
You should use 4000 to put into a ROTH IRA.  You can put another 4000 in a ROTH IRA for your wife.  If you are taking advantage of the tax deduction of mortgage interest, your interest rate is effectively 4%, so it probably makes more sense to invest rather than pay off your mortgage.\nYou might want to put your 2000 into municipal bonds which will give you tax-free income.
479503
I see some interesting responses on here.  I disagree with the reverse mortgage suggestion.  Up front it sounds great to take out a mortgage and never have to worry about paying it.  Needless to say interest continues to accrue and as this person suggested it will be paid from the estate.  Many times however it requires the estate to sell the home to do so.  I would only suggest a reverse mortgage as a last resort.  \n\nThis situation is a sensitive one as many factors come into play.  Such as what is the value of his 401K, what other sources of income does he have and what other savings vehicles are available to him.  Since he is in his 60's he can withdraw from his 401K without a penalty although he is still subject to taxation on the lump sum distribution.  This is why it is important to know what other sources of income he does have and are those other sources taxable. \n\nIf he his paying a high mortgage rate there is some benefit to paying off his mortgage, but not if this severely depletes his liquid assets.  It is a complicated question and needs a full financial analysis to see if it is beneficial.  \n\nI would however avoid that reverse mortgage option in this situation.
120587
My idea would be to sell out your traditional ira and put the remaining into your roth ira. You should be talking to your financial advisor about all this. He or She should know all this and be able to guide you what to do. if not, time to get a new Financial advisor. But, at least check out this site which I pulled for you while doing my own research. It looks like it nails it on the head of what your asking about. Read it thoroughly and take it in, then talk to your financial advisor and go from there. Hope I was of some help to you. Good luck! Shuuutnstr =o)\nhttp://www.bankrate.com/brm/itax/news/taxguide/20060102e1.asp
74804
Since your company does not match and if you have never own a home before, you should set up a Roth IRA since you can withdraw up to $10,000 for a down payment on your first home and leave the rest in there tax defer and withdraw it later tax free.\nOtherwise it is all depend on your tax bracket now and later, when you withdraw.\nYou have more control of where to invest your money on the Roth, since it is self directed. Whereas in your 401K, you have a limited choice of funds to choose from.
469396
That's basically how it works.  You sell a home for a certain amount of money and then you pay off the mortgage, so whatever's left is yours.  Now, that doesn't necessarily mean that paying off a house is the best investment you can make.  Nothing wrong with it, but if you're looking for maximum bang for your buck you may be better off making the monthly payments on your mortgage and investing your extra money elsewhere.  No way to be sure which is the better investment without checking interest rates and comparing.
288097
Find a financial advisor you trust (through interviewing them).  They will provide good investment advice.  Both IRA's grow tax deferred (you don't pay earnings along the way).  The differences are that \n\nTraditional ira- tax write off on contributions, taxed fully when withdraw, can't withdraw b4 59.5yrs old w/o 10% irs penalty and taxed on everything\n\nRoth- all contributions are already taxed (can't use it as a write off), by the time you're 59.5 yrs old (and assuming you had the account at least for 5 yrs) everything is tax free.  You are also allowed to take out the principal at anytime w/o penalty.  Some other rules apply to fully withdraw w/o penalty (i.e. 1st home purchase, higher education, etc.)\n\nAgain, if you have little to no investment experience, DO NOT listen to those hot stock tips, Suze Orman, or whatever is on TV.  By the time you hear of those 20% returns, you're already too late (i.e. real estate).  Please, please work with a professional.
22467
This is just my opinion :)...\n\n401K reasonable. Couple of things may happen...where the company contribution goes and where your contribution goes. Also, generally takes 3 to 5 years to be fully vested so you "get" the entire company contribution. If you go this way, take advantage of the maximum employer contribution. It's free money!\n\nROTH IRA  Taxed before you put it in so you aren't taxed when you take it out (Traditional IRA's are the exact opposite). Suggest you contact a broker, start a monthly contribution to a ROTH in a solid mutual fund. A good broker will sit with you and discuss your risk tolerance.\n\nIf you can afford to do a 401 and an IRA, do both.\n\nRegardless of what plan you choose, get started now and make monthly contributions.
315935
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574762
Mortgage interest is taken as an itemized deduction.  You can either itemize, or take what's called a standard deduction, which is an amount the IRS gives you without having to prove anything.  Standard deduction for last year for a married person where both spouses are under 65 was $10,000.  If your mortgage interest plus any other itemized deductions adds up to over $10,000, you should itemize.  If not, the mortgage interest you pay doesn't affect your taxes.\n\nIf you itemize, that amount is subtracted from your income before figuring your taxes.  If you don't itemize, the "standard deduction" is subtracted instead.  That's from your income, not from your taxes.
32085
If your company offers a 401K plan, take advantage of it.  They'll take out a fraction of you paycheck (as lo as 1%) and invest it in a mutual fund.  Many companies match your contribution, so that's like free money.  \n\nIf you just forget about it and just let it grow, you'll soon build up quite a bit of dough.\n\nIt's tax deferred, so that means you won't pay taxes on it until you cash it out.\n\nThe only drawback is you can't cash it out until you're 59 and a half without paying a penalty.
473784
it depends on your age - if you are young and still working stock and bonds are very god but if you are older you ay want to keep a guaranteed return on investment such as CD's\nreal estate is up and down I dont recommend it
564815
First, I would make sure you have at least 3 months salary saved up in the bank or in a money market fund for an emergency fund. (Some people say 6 months.) Financial disasters like getting layed off or sick happen to all of us.\n\nSecond, I would pay off all high interest debt. Pay off everything you can except the house mortgage and student loans. Paying off debt is one of the best investments you can make. You will have more money in the future because you won't have credit card bills to pay.\n\nThird, if you have money left, start investing in stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks, as individual stocks are too risky. For most folks this means buying mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money conservatively, in money market funds and bond funds, and part aggressively in stock funds. Vanguard.com has an on-line questionnaire which will give you an idea how aggressive you want to be. \n\nInvesting in a mutual fund IRA for retirement may give you an income tax break. Talk to your tax adviser. You may also be able to invest in a stock mutual fund via a 401K plan at work. Buying a house instead of renting will make you a lot of money in the long run. \n\nBelieving advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however.
282075
First, I would make sure you have at least 3 months salary saved up in the bank or in a money market fund for an emergency fund. Financial disasters like getting layed off or sick happen to all of us.\n\nSecond, I would pay off all high interest debt. Pay off everything you can except the house mortgage. Paying off debt is one of the best investments you can make. You will have more money in the future because you won't have credit card bills to pay.\n\nThird, if you have money left, start investing in stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks, as individual stocks are too risky. For most folks this means buying mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money conservatively, in money market funds and bond funds, and part aggressively in stock funds. Vanguard.com has an on-line questionnaire which will give you an idea how aggressive you want to be. \n\nInvesting in a mutual fund IRA for retirement may give you an income tax break. Talk to your tax adviser. You may also be able to invest in a stock mutual fund via a 401K plan at work. \n\nTaking advice off someone you met over the Internet and know nothing about is risky. Read these websites for further information.
187734
This is a little known mortgage option, cause there's unknowns.  The index that the interest rate is following is hard to look up.  I would not take this mortgage.  A fixed 15 or 30 year is better.  If you need to take on an adjustible, try a hybrid 5/1 interest only.\n\nhttp://www.bankrate.com/brm/news/Drdon/20050916a1.asp
71987
The 30yr mortgage rate will probably not move until the end of April.At that time it looks like it will go up .05% . The sooner you lock in the better.
47815
If your time horizon (retirement date) is more than 20 years out, its best to invest in a 401k plan rather than invest in a taxable plan.  The reason is that the 401k has certain tax advantages which allow you to defer current taxes out into the future which gives you more money to compound earnings against.  Also, if you are an employer, you dont pay employer taxes against the money invested in the 401k plan.
597892
A LOT of things would determine this.\n\nSome people could live on $35,000 a year, some need $75,000 in today's dollars.  It also depends on what type of pension or social security you will be receiving.  Do you have any savings?  Also, at what age do you want to retire, expected life span?  \n\nI don't know anything about you by your question, but here are some numbers I ran yesterday for a 27y.o. wanting to retire at 40.  These were just quick estimates.\n\n\nIdeally, if you retire at 40 and live another 40 years, can obtain a 7% rate of return, and need $40,000 a year for the 40 years in retirement, you need to have a little more than $500,000 in savings by the time you are 40 years old.\n\nYou can reach this $500,000 if you save about $27,000 a year for the next 13 years, given a 7% rate of return. \n\nDepending on your salary, this may be obtainable but you have a lot of work to do since you have basically no savings. Also, I used 7% because thats the average rate of return in the stock market but depending on your investments, it may be more or less. I would take full advantage of your TSP (401k) because all that matching the gov't does will really pay off. Also, it may be tough, but buy very few "wants" and try to stick to spending money on "needs." People usually think it is impossible, but it really isn't. Also, I'm sure you'll want a home at some point and you have to take that into consideration as well. Good luck