Mortgage Free

[Jluke]

Care to explain why? Do you not trust employer 401K plan?

We had some discussions in the Investing part of the forum - Non traditional investing thread

I've done well in my 401k... If I take the total divided by number of years, it comes out to around 17k/year - which I never contributed that much so there is growth.

skeptical of the fees, investment choices are lacking, do they manage them so you do just ok and don't have a chance for a clear cut winner?, and then when/how can I access that money when I retire? 59.5 (for now)... but can I take a lump sum?, does it stay in that account?, I know there are mandatory withdrawals required at some point... anything with rules that will allow/prevent me from accessing the bulk of my savings concerns me.

I will pay more along the way in federal taxes, but I am trying to figure this all out.

[Fishindude77]

Congrats on the mortgage payoff !

[tripods68]

skeptical of the fees, investment choices are lacking, do they manage them so you do just ok and don't have a chance for a clear cut winner?, and then when/how can I access that money when I retire? 59.5 (for now)... but can I take a lump sum?, does it stay in that account?, I know there are mandatory withdrawals required at some point... anything with rules that will allow/prevent me from accessing the bulk of my savings concerns me.

I will pay more along the way in federal taxes, but I am trying to figure this all out.

I run few monte carlo simulations this weekend and found that I have 100% successful rate if I'm contributing steady for the next 12 years regardless our account is a Taxable versus Pre Tax with a minimum of $35K- Max $50K a year contributions, keeping at withdrawal at 40K at age 57. Any other incomes like Pension & SS will be a bonus. (Investing more in taxable accounts has some tax disadvantages compared to Pretax contributions which is very important to me).

My point, regardless whether you invest in a taxable or Pretax account like 401K into a fully diversified portfolio---make consistent annual contribution amount of 17K. There is a high probability rate you will succeed because of the time horizon (age 39).

One thing you should consider is maxing out ROTH every year at minimum and split 401K contributions.

I less worry about how much federal tax, or "fees' I will pay at retirement than running out of money. Its not even close.

[corn18]

There are many right answers and only a few wrong answers. Not saving is the wrong answer. Where you put it and how you invest it has many right answers. And my right answer is not necessarily your right answer. You could be a 401k only kindof person. Maybe 401k, Roth and taxable (that's me). Maybe you invest in real estate or your own business. That's all good. But it all starts with saving something first. And living below your means.

[greenskeeper]

Why? You just paid off one loan and now are going to replace it with another?

because I can't pay cash for the vacation house? Not sure what you are asking.

[Jluke]

My Experian FICO score was updated today - no change after paying off the mortgage.

I seem to remember some people being concerned about their score taking a hit so just thought I'd share.

My credit union updates it monthly for free so I'll let everyone know if I see a drastic change over the next few months.