just doing some planning for next year. I'm wondering if anyone does this for their version of marketing timing. I realize investing in taxable will be a better investment long term compared to paying off mortgage early. Right now the mortgage balance is $590k, eight years into a 30-year at 3.375%. Plan is to get this below the jumbo amount and eventually refinance to a 15-year, hoping that rates will still be low in about 2 years (and the fed has said as much so I'm reasonably confident we can get a rate below 2.9%), and we'll be in this place at least for another 20 years.
In 2021 we should have ~$75k extra and I'm trying to balance what to do. We want to pay off the mortgage before oldest goes to college, in 11 years. We save 25-30% for retirement already, and we have enough tax-protected space to get the 25-30% savings in there, so we don't have a taxable account. My initial plan was to take $75k and throw it all at the mortgage over the year. Maybe I should just stick to my original plan but....I'm wondering if people do this but perhaps make an exception for when there's a market correction? We do not time the market in our household. All I do when there's a dip is, sometimes, I'll convert some pre-tax money to roth at a "discount." Obviously I have no idea what the future will hold, and I prioritize paying off mortgage, but now I'm wondering if there's an especially bad month or few weeks (after all there's usually 1 correction per year) and when that happens, take a month or two of what would have gone to the mortgage and start a taxable account by buying on the dip?
In 2021 we should have ~$75k extra and I'm trying to balance what to do. We want to pay off the mortgage before oldest goes to college, in 11 years. We save 25-30% for retirement already, and we have enough tax-protected space to get the 25-30% savings in there, so we don't have a taxable account. My initial plan was to take $75k and throw it all at the mortgage over the year. Maybe I should just stick to my original plan but....I'm wondering if people do this but perhaps make an exception for when there's a market correction? We do not time the market in our household. All I do when there's a dip is, sometimes, I'll convert some pre-tax money to roth at a "discount." Obviously I have no idea what the future will hold, and I prioritize paying off mortgage, but now I'm wondering if there's an especially bad month or few weeks (after all there's usually 1 correction per year) and when that happens, take a month or two of what would have gone to the mortgage and start a taxable account by buying on the dip?
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