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Originally Posted by viet_mom
P.S., I'm worried about finances these days. If you had a 5.5% 30 year fixed mortgage (with around 300K in principal), would you use your extra money to pay it off since savings plans are absurd, like $.002% annual interest? Thanks.
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Not unless you think you're likely to lose your income before you've paid the mortgage.
Don't know where you are, but most housing markets will likely start to pick up in value again by the year's end -- the equities markets are likely to do the same only sooner. You will make more $$ long term by investing it than if you pay off a 5.5% mortgage.
To avoid declines, if it makes you sleep better you can hold it for a while in cash -- short term -- or you can invest in a relatively low risk investment like the right kind of bond fund until you're sure things have turned around. [PIMCO Total Return is passe, but it made 4% last year and is ahead this year as well -- slow and steady.]
S_A_M
