Comments on: Should I Use My 401k To Pay Off My Mortgage? http://www.myinvestingblog.com/should-i-use-my-401k-to-pay-off-my-mortgage/ Teach Your Money To Think! Fri, 10 Feb 2012 18:37:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: John W Clarke http://www.myinvestingblog.com/should-i-use-my-401k-to-pay-off-my-mortgage/#comment-3912 John W Clarke Tue, 31 Jan 2012 21:36:00 +0000 http://myinvestingblog.com/2007/11/29/should-i-use-my-401k-to-pay-off-my-mortgage/#comment-3912 If the government really wanted to help the middle class. They would allow you to borrow from your IRA or 401K to pay off a first mortgage. Thier should be no tax or penalty from this transaction if you are 59 and a half or older. This would allow you to pay a much lower interest rate that would be returned to you. If the past 10 years are any indication of future returs on your investments you will be way ahead of the game. In the past 10 years the average investor has made no money or lost money on his investments. Because this is a win situation for the middle class our politians would never let this happen. As a wise man said " the middle class AKA the working class always pays the freight.  John If the government really wanted to help the middle class. They would allow you to borrow from your IRA or 401K to pay off a first mortgage. Thier should be no tax or penalty from this transaction if you are 59 and a half or older. This would allow you to pay a much lower interest rate that would be returned to you. If the past 10 years are any indication of future returs on your investments you will be way ahead of the game. In the past 10 years the average investor has made no money or lost money on his investments. Because this is a win situation for the middle class our politians would never let this happen. As a wise man said ” the middle class AKA the working class always pays the freight. 
John

]]> By: Eimesor1 http://www.myinvestingblog.com/should-i-use-my-401k-to-pay-off-my-mortgage/#comment-3901 Eimesor1 Fri, 13 Jan 2012 15:24:00 +0000 http://myinvestingblog.com/2007/11/29/should-i-use-my-401k-to-pay-off-my-mortgage/#comment-3901 first of all it's all about peace of mind.  your 401k money is not guarrenteed to be there the market could turn that million into 250k just when you are getting ready to retire. If you don't believe it ask the million people who thought they only had one or 2 years till retirement in 2008. These people are still working hard. The only thing you can count on is the peace of mind of  owning a house free and clear. Then if you have extra you add it to your 401k and a roth ira first of all it’s all about peace of mind.  your 401k money is not guarrenteed to be there the market could turn that million into 250k just when you are getting ready to retire. If you don’t believe it ask the million people who thought they only had one or 2 years till retirement in 2008. These people are still working hard. The only thing you can count on is the peace of mind of  owning a house free and clear. Then if you have extra you add it to your 401k and a roth ira

]]> By: 401k withdrawal calculator | 401k Withdrawal Calculator http://www.myinvestingblog.com/should-i-use-my-401k-to-pay-off-my-mortgage/#comment-3899 401k withdrawal calculator | 401k Withdrawal Calculator Sat, 07 Jan 2012 00:17:29 +0000 http://myinvestingblog.com/2007/11/29/should-i-use-my-401k-to-pay-off-my-mortgage/#comment-3899 [...] 401K Withdrawal Penalties are in Place for Your BenefitSingapore Individual Income Tax Calculator for 2012401k Early Withdrawal Calculator: Using The IRS Methods401k TipsShould I Use My 401k To Pay Off My Mortgage.wp-caption-text{display:none!important;} [...] [...] 401K Withdrawal Penalties are in Place for Your BenefitSingapore Individual Income Tax Calculator for 2012401k Early Withdrawal Calculator: Using The IRS Methods401k TipsShould I Use My 401k To Pay Off My Mortgage.wp-caption-text{display:none!important;} [...]

]]> By: GreedyPoliticians http://www.myinvestingblog.com/should-i-use-my-401k-to-pay-off-my-mortgage/#comment-3874 GreedyPoliticians Sun, 13 Nov 2011 16:14:00 +0000 http://myinvestingblog.com/2007/11/29/should-i-use-my-401k-to-pay-off-my-mortgage/#comment-3874 A few other items to consider: imagine what the tax rate/% is going to be when you retire, as baby boomers retire they will continue to take their money out of the market causing a downward trend. The younger generations are consistently unemployed/underemployed, thus they are not financially able to contribute to their 401k's. This also will cause a downward trend in the market.  Do you know what fees you are paying banks and advisors to invest your own money?  Wall Street is loaded with greed and corruption, the only person you can trust with your hard earned money is yourself!  Pay off your mortgage and have piece of mind. A few other items to consider: imagine what the tax rate/% is going to be when you retire, as baby boomers retire they will continue to take their money out of the market causing a downward trend. The younger generations are consistently unemployed/underemployed, thus they are not financially able to contribute to their 401k’s. This also will cause a downward trend in the market.  Do you know what fees you are paying banks and advisors to invest your own money?  Wall Street is loaded with greed and corruption, the only person you can trust with your hard earned money is yourself!  Pay off your mortgage and have piece of mind.

]]> By: GreedyPoliticians http://www.myinvestingblog.com/should-i-use-my-401k-to-pay-off-my-mortgage/#comment-3873 GreedyPoliticians Sun, 13 Nov 2011 15:59:00 +0000 http://myinvestingblog.com/2007/11/29/should-i-use-my-401k-to-pay-off-my-mortgage/#comment-3873 Please don't trust Wall Street, large banks or CFO's/CEO's of large companies.  I disagree with most of the people that have commented on here.  I do not believe that you can accumulate wealth via Wall Street in todays world.  Wall Street is loaded with corruption and greed.  If you figure out how much you are paying the banks monthly on your mortgage, you may change your mind.  I strongly encourage people to take out their 401k's and pay off their mortgage.    Please don’t trust Wall Street, large banks or CFO’s/CEO’s of large companies.  I disagree with most of the people that have commented on here.  I do not believe that you can accumulate wealth via Wall Street in todays world.  Wall Street is loaded with corruption and greed.  If you figure out how much you are paying the banks monthly on your mortgage, you may change your mind.  I strongly encourage people to take out their 401k’s and pay off their mortgage.   

]]> By: Joe http://www.myinvestingblog.com/should-i-use-my-401k-to-pay-off-my-mortgage/#comment-3868 Joe Sat, 22 Oct 2011 21:41:00 +0000 http://myinvestingblog.com/2007/11/29/should-i-use-my-401k-to-pay-off-my-mortgage/#comment-3868 I retire in 2 more yrs.  I have no depts all my bill are paid off.  The only dept hanging over my head right now is my mortgage pymt of 1083.00 per mth.  I owe approx. 80K on my home.  I have 2 pensions, my 401K, an inheirentance also in the bank.  What would be the best way to go.  I am losing having my money in the 401K my wife and I keep constant watch over it.  We have shuffled our funds around so we are more stable and not losing our rear ends off.  What's the best suggestion we can do, I have also have had a couple health scares recently.  Sooner or later the morgage is going to have to be paid off. What's your thoughts on this? Can't decide, Joe I retire in 2 more yrs.  I have no depts all my bill are paid off.  The only dept hanging over my head right now is my mortgage pymt of 1083.00 per mth.  I owe approx. 80K on my home.  I have 2 pensions, my 401K, an inheirentance also in the bank.  What would be the best way to go.  I am losing having my money in the 401K my wife and I keep constant watch over it.  We have shuffled our funds around so we are more stable and not losing our rear ends off. 

What’s the best suggestion we can do, I have also have had a couple health scares recently.  Sooner or later the morgage is going to have to be paid off.

What’s your thoughts on this?

Can’t decide,

Joe

]]> By: ecounitedloanlimitedoffer http://www.myinvestingblog.com/should-i-use-my-401k-to-pay-off-my-mortgage/#comment-3867 ecounitedloanlimitedoffer Wed, 19 Oct 2011 04:35:00 +0000 http://myinvestingblog.com/2007/11/29/should-i-use-my-401k-to-pay-off-my-mortgage/#comment-3867 welcome to MICRO FINANCE  LOAN PLC we offer loan to people on bad credit,home improvement loan, personal and business loan, student looking for financial help and to companies etc with a very low interest rate and with or without collateral. any interested one should contact us via email microfinance@wss-id.org with the following information,please complete and summit the information below; ******************************************************* Borrower's Information full name: country: age: 0ccupation: sex: Telephone: mobile Phone number: monthly Income: amount needed: purpose of Loan: Loan duration: ******************************** Mr BILLY ASHTON EMAIL microfinance@wss-id.org welcome to MICRO FINANCE  LOAN PLC we offer loan to people on bad credit,home improvement loan, personal and business loan, student looking for financial help and to companies etc with a very low interest rate and with or without collateral. any interested one should contact us via email microfinance@wss-id.org with the following information,please complete and summit the information below;
*******************************************************
Borrower’s Information
full name:
country:
age:
0ccupation:
sex:
Telephone:
mobile Phone number:
monthly Income:
amount needed:
purpose of Loan:
Loan duration:
********************************
Mr BILLY ASHTON
EMAIL microfinance@wss-id.org

]]> By: Chuck http://www.myinvestingblog.com/should-i-use-my-401k-to-pay-off-my-mortgage/#comment-3840 Chuck Wed, 31 Aug 2011 17:59:00 +0000 http://myinvestingblog.com/2007/11/29/should-i-use-my-401k-to-pay-off-my-mortgage/#comment-3840 10% on a 401(k)?  I'd love to get that!  I think that is a bad assumption.  I've done the math and for me, I net quite a bit more by paying off my mortgage, even after taxes and penalties, because of the snowball effect. Paying off my $85000 costs me about $35000 in taxes and penalties, but I save $10,000 in interest from my mortgage and have $2000 more in my pocket every month.  I take $1500 of that and make payments off a mortgage on a rental property, saving $45000 in interest and paying it off in 3.7 years instead of 20 years.  After 3.7 years, I have an extra $2600 more in my pocket every month.  $2000 from the 1st, and $600 from the rental.  Now I can put $600 in my pocket and pay $2000 off the next rental property mortgage (I have 3 rental properties).  Also remember that you will pay taxes from your 401k when you take it out.  Even if its at the lowest %, that's 15%.  So, with plan A (pay off mortgage), I save $47,650 over the first 5 years (after paying the $35000 tax and penalty to access my 401k.  With plan B (do nothing), I pay about $16000 when I withdrawal that money eventually, plus any interest that I may lose in my 401(k), which right now is a very unknown quantity.  So +47,650 vs -15000 + lost compounded interest. One thing the author says is that you don't get the mortgage deduction if you pay off your mortgage.  That's true, but there is never a 100%+ tax on anything.  So, if the investment is sound, you'll never pay more in taxes than you make.  For me, this makes sense. 10% on a 401(k)?  I’d love to get that!  I think that is a bad assumption.  I’ve done the math and for me, I net quite a bit more by paying off my mortgage, even after taxes and penalties, because of the snowball effect. Paying off my $85000 costs me about $35000 in taxes and penalties, but I save $10,000 in interest from my mortgage and have $2000 more in my pocket every month.  I take $1500 of that and make payments off a mortgage on a rental property, saving $45000 in interest and paying it off in 3.7 years instead of 20 years.  After 3.7 years, I have an extra $2600 more in my pocket every month.  $2000 from the 1st, and $600 from the rental.  Now I can put $600 in my pocket and pay $2000 off the next rental property mortgage (I have 3 rental properties).  Also remember that you will pay taxes from your 401k when you take it out.  Even if its at the lowest %, that’s 15%.  So, with plan A (pay off mortgage), I save $47,650 over the first 5 years (after paying the $35000 tax and penalty to access my 401k.  With plan B (do nothing), I pay about $16000 when I withdrawal that money eventually, plus any interest that I may lose in my 401(k), which right now is a very unknown quantity.  So +47,650 vs -15000 + lost compounded interest.

One thing the author says is that you don’t get the mortgage deduction if you pay off your mortgage.  That’s true, but there is never a 100%+ tax on anything.  So, if the investment is sound, you’ll never pay more in taxes than you make.  For me, this makes sense.

]]> By: Janice Smith http://www.myinvestingblog.com/should-i-use-my-401k-to-pay-off-my-mortgage/#comment-3824 Janice Smith Mon, 08 Aug 2011 03:23:00 +0000 http://myinvestingblog.com/2007/11/29/should-i-use-my-401k-to-pay-off-my-mortgage/#comment-3824 You are so right ,I agree with you so much, I'am kind of in the same place, I am self employed so never know if its going to be good or bad income, my house is not paid off. I am single and with this econamy the way it is, I already lost over 100,000 thousand a couple years ago from my 401k, they talked me in to leaving it. and I would get it back. it came back a little but  now its happening again and i am thinking take it out and till this enconmy gets better then  put it back to grow for my retirment.Not let it set there and loose 2 or 3 thousand eevery week.  What do you think. I mean am I thinking straight.?       thanks Jan You are so right ,I agree with you so much, I’am kind of in the same place, I am self employed so never know if its going to be good or bad income, my house is not paid off. I am single and with this econamy the way it is, I already lost over 100,000 thousand a couple years ago from my 401k, they talked me in to leaving it. and I would get it back. it came back a little but  now its happening again and i am thinking take it out and till this enconmy gets better then  put it back to grow for my retirment.Not let it set there and loose 2 or 3 thousand eevery week.  What do you think. I mean am I thinking straight.?       thanks Jan

]]> By: Dionne Daniel http://www.myinvestingblog.com/should-i-use-my-401k-to-pay-off-my-mortgage/#comment-3789 Dionne Daniel Wed, 15 Jun 2011 23:07:45 +0000 http://myinvestingblog.com/2007/11/29/should-i-use-my-401k-to-pay-off-my-mortgage/#comment-3789 Totally agree about not taking anything from your 401(k), since it's not really that wise to touch investments while today's economics is still quite unstable, where prices go extremely low, then high the next week. Like Hank, I personally think it's wiser to take a loan to pay that mortgage rather than touching your 401(k). Totally agree about not taking anything from your 401(k), since it's not really that wise to touch investments while today's economics is still quite unstable, where prices go extremely low, then high the next week. Like Hank, I personally think it's wiser to take a loan to pay that mortgage rather than touching your 401(k).

]]>