$300k windfall

[Anonymous]

We are getting an unexpected windfall that we don’t need. Retirement and 529 accounts are maxed out. I know typically people say invest it, but if we have a mortgage with a 6.25% interest rate it makes sense to reduce that right? I don’t know where I can get that kind of guaranteed return. Or should I take a risk and put it in the stock market or PE?

[Anonymous]

Anonymous wrote:We are getting an unexpected windfall that we don’t need. Retirement and 529 accounts are maxed out. I know typically people say invest it, but if we have a mortgage with a 6.25% interest rate it makes sense to reduce that right? I don’t know where I can get that kind of guaranteed return. Or should I take a risk and put it in the stock market or PE?

I would absolutely use it to pay down the mortgage. You can recast the loan and reduce the monthly payment, too. Talk to the lender about it!

[Anonymous]

Anonymous wrote:We are getting an unexpected windfall that we don’t need. Retirement and 529 accounts are maxed out. I know typically people say invest it, but if we have a mortgage with a 6.25% interest rate it makes sense to reduce that right? I don’t know where I can get that kind of guaranteed return. Or should I take a risk and put it in the stock market or PE?

There is no such thing.

[Anonymous]

What is a "maxed out" 529?

[Anonymous]

Anonymous wrote:We are getting an unexpected windfall that we don’t need. Retirement and 529 accounts are maxed out. I know typically people say invest it, but if we have a mortgage with a 6.25% interest rate it makes sense to reduce that right? I don’t know where I can get that kind of guaranteed return. Or should I take a risk and put it in the stock market or PE?

paying off/down a mortgage is the best feeling.

It feels like freedom

[Anonymous]

1)Pay off your mortgage.
2)Invest the monthly payment you are going to save.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are getting an unexpected windfall that we don’t need. Retirement and 529 accounts are maxed out. I know typically people say invest it, but if we have a mortgage with a 6.25% interest rate it makes sense to reduce that right? I don’t know where I can get that kind of guaranteed return. Or should I take a risk and put it in the stock market or PE?

There is no such thing.

I think that the above statement is incorrect. There are limits on both 529 plans and on some retirement accounts. My neighbor was sent a large check several years ago because his retirement account was over funded. I do not know specifics as my knowledge is due to the fact that he asked me for investment suggestions when he shared the source of the funds.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are getting an unexpected windfall that we don’t need. Retirement and 529 accounts are maxed out. I know typically people say invest it, but if we have a mortgage with a 6.25% interest rate it makes sense to reduce that right? I don’t know where I can get that kind of guaranteed return. Or should I take a risk and put it in the stock market or PE?

There is no such thing.

I think that the above statement is incorrect. There are limits on both 529 plans and on some retirement accounts. My neighbor was sent a large check several years ago because his retirement account was over funded. I do not know specifics as my knowledge is due to the fact that he asked me for investment suggestions when he shared the source of the funds.

Not sure, but it may have been an issue regarding minimum mandatory distributions.

[Anonymous]

I personally would use it to buy an investment property but I think paying off your relatively high mortgage is a fine idea too.

[Anonymous]

I'd split the difference. Put half towards the mortgage and invest the rest. And then also invest the savings from the lower mortgage payment each month.

[Anonymous]

My husband would say save save save. But then I got diagnosed with cancer and I’m all about the spend spend spend! Life’s too short. If you don’t need the $$ clearly you’re set for retirement. Enjoy it now.

[Anonymous]

When did you get your mortgage? When will it be paid off? How much is left?

[Anonymous]

Anonymous wrote:When did you get your mortgage? When will it be paid off? How much is left?

+1

[Anonymous]

Anonymous wrote:When did you get your mortgage? When will it be paid off? How much is left?

+1 to how much is left. I'm not sure you'll get a significant improvement in rates in this market so a recast won't be as helpful as it would have been last year. If $300k wipes it out; go for it. If it just knocks 5 years off the end of a new 30 year mortgage I'd probably put the money in the market instead.

[Anonymous]

Anonymous wrote:

Anonymous wrote:When did you get your mortgage? When will it be paid off? How much is left?

+1 to how much is left. I'm not sure you'll get a significant improvement in rates in this market so a recast won't be as helpful as it would have been last year. If $300k wipes it out; go for it. If it just knocks 5 years off the end of a new 30 year mortgage I'd probably put the money in the market instead.

[headdesk] A recast doesn't change the rate. Good lord.