Seems like this economy is absolutely clicking. At least my retirement accounts are. Some good news from Apple announced today. Wondering when it’s all going to come crashing down?
Re: Investing for Retirement
Posted: January 17 18, 2:33 pm
by Jocephus
i was going to post something about this too. i got my quarterly assessment from my TIAA cref accounts a couple weeks back...and they certainly did have a good year. seems like it went up 5.4% for the quarter, 20 some % for the year, IIRC.
Keep your 3 fund portfolio asset allocations and don't time the market.
Re: Investing for Retirement
Posted: January 17 18, 2:50 pm
by Popeye_Card
I've had a 21% ROR over the past 12 months for my 401k. The only good thing about Trump's America thus far.
Waiting for the other shoe to drop.
Re: Investing for Retirement
Posted: January 17 18, 2:59 pm
by Tim
Popeye_Card wrote:I've had a 21% ROR over the past 12 months for my 401k. The only good thing about Trump's America thus far.
Waiting for the other shoe to drop.
18% here
I’m with you
Re: Investing for Retirement
Posted: January 17 18, 3:25 pm
by Swirls
Tim wrote:
Popeye_Card wrote:I've had a 21% ROR over the past 12 months for my 401k. The only good thing about Trump's America thus far.
Waiting for the other shoe to drop.
18% here
I’m with you
22% here. The bubble will pop eventually... The only question is when.
Re: Investing for Retirement
Posted: February 26 18, 3:31 pm
by GeddyWrox
I'm down to ~47K left to pay off my house. We've been paying extra to pay down principle dramatically over the years and the idea of no longer having a house payment is exciting. I don't have enough in savings to pay it off entirely yet, though. Does it make sense to borrow against my 401K to pay it off? My interest rate is 4.125. Probably not, but I'm just curious.
Re: Investing for Retirement
Posted: February 26 18, 3:51 pm
by Tim
GeddyWrox wrote:I'm down to ~47K left to pay off my house. We've been paying extra to pay down principle dramatically over the years and the idea of no longer having a house payment is exciting. I don't have enough in savings to pay it off entirely yet, though. Does it make sense to borrow against my 401K to pay it off? My interest rate is 4.125. Probably not, but I'm just curious.
Would you get a penalty?
Re: Investing for Retirement
Posted: February 26 18, 3:58 pm
by GeddyWrox
Tim wrote:
GeddyWrox wrote:I'm down to ~47K left to pay off my house. We've been paying extra to pay down principle dramatically over the years and the idea of no longer having a house payment is exciting. I don't have enough in savings to pay it off entirely yet, though. Does it make sense to borrow against my 401K to pay it off? My interest rate is 4.125. Probably not, but I'm just curious.
Would you get a penalty?
On which? The payoff, or the 401K loan? Either way, not sure... I'd have to look into it. I'm really just starting to kick the tires on the idea.
Re: Investing for Retirement
Posted: February 26 18, 4:04 pm
by Michael
GeddyWrox wrote:I'm down to ~47K left to pay off my house. We've been paying extra to pay down principle dramatically over the years and the idea of no longer having a house payment is exciting. I don't have enough in savings to pay it off entirely yet, though. Does it make sense to borrow against my 401K to pay it off? My interest rate is 4.125. Probably not, but I'm just curious.
'
Congrats on getting so close to paying off your mortgage!
That said, I acknowledge there are mental well being considerations, but I don't think paying down a mortgage early makes a tremendous amount of sense. What's the rush? The tax implications could be a mess. Also, 401k's are also a protected investment from things like creditors however a home is not. Additionally, today's mortgages are pretty nice because they are cheap money that hedges your overall portfolio/net worth against inflation.
Just leave your 401k alone, make regular contributions, and only withdraw if you have a horrible life event.
***Michael is not a licensed financial adviser and provides investment advice for entertainment purposes only. Not available in all 50 states. Void where prohibited.***
I'd argue you shouldn't add extra payments to your mortgage until you've at least paid off high interest debt like CC, and maxed out both your 401k and Roth IRA. Even after that I'd open up a taxable account and buy index funds before I'd pay off my mortgage.
