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What kind of loan terms do you have on the 2nd home?
Is it a 30 year fixed rate, and at what percent?
30 yr fixed. 4.5 interest rate. renter currently pays principal, taxes & ins.
I would beef up your retirement funds. Interest rates are on an incline, and this debt is at an attractive low rate
and the interest is tax deductible
When lending interest goes up, so will savings interest. Soon, it will make more sense to save money than to spend it
thank you. in which direction should i beef up the retirement? Ira's??
If you were on an adjustable rate loan, I would have told you to pay the loan off...but fixed, no - this is good
Thank you. In which direction should i beef up the retirement? Ira?
You can only invest a small amount per year in an IRA. I would maximize that. I would give the max to my 401(k) plan and do the max allowed IRA contribution as well.
In your IRA account, I would try to keep safe investments since you are 55. Ideally, when CD rates start to increase (right now they are earning next to nil) you want to lock in as high of rates as possible in those FDIC insured accounts
But, to plan for that, keep your investments in holdings that are liquid, meaning easy to transfer out and into other investments
Don't invest your IRA in real estate or hard assets
Is there anything else that I can assist you with today?
ok. You said to max the 401k. employer matches .50 on dollar, up to 6%, I contribute 6%. I can contribute with catch up funds, although there will be no matching. is this your suggestion. Also, can I print this conversation?
Yes, I would suggest to contribute the maximum amount allowed which I believe is in the neighborhood of $17,500 plus your catchup contribution would be 5,500
Is there anything else that you need assistance with?
I will do that. thank you for the advise. I believe that's all i'm needing at this time.
Okay great. Please take a moment to rate as "excellent" so that I may receive credit for assisting you today