Adobeffisjebdk

Suggestions for what do do with some money?

I just cashed out a bunch of RSUs and ESPPs. I am going to use the money to pay down my mortgage. I owe 150k and I have 100k cash. In 11 months I'll have the other 50k from more ESPPs and RSUs. I could put the 100k towards the mortgage now. I could put the 100k in a savings account with. %2.2 rate until next year. Does anyone have any other suggestions I should consider? Since it's only a year I think I need to keep it pretty liquid and low risk, which is why I'm considering the savings account.

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Microsoft ✅underpaid Mar 30, 2019

Paying down your mortgage isn’t always the best financial option. It’s a cheap loan. I would invest that cash 💰

Microsoft tech.ladki Mar 30, 2019

Sure, but sooner the mortgage free house you have the better . It would be nice to not have to worry about mortgage when you retire

Oscar 🐨koala Mar 30, 2019

Putting into saving doesn’t yield much. Your mortgage interest will run ahead. You could do a 7:3 split (70 for investment, 30 for mortgage). I always like to pay off mortgage asap. They can cost more than total stock earning in a life time easily.

Microsoft anonymousM Mar 30, 2019

Yes, but if you are earning, your effective mortgage interest got reduced by more than half, assuming mortgage rate is 4% and by the time you finish paying mortgage, you still have your 100k... point being, save the money for when your earning power dimnishes, especially if you don't have any problem paying mortgage at the current rate.

Microsoft anonymousM Mar 30, 2019

Don't pay the mortgage, even a decent savings account is better than that... especially since the mortgage rates are so low. there are bonds and safer instruments if you don't want to play risky in stock...think of it like this - you can always take that invested money and pay it towards mortgage anytime you want.

Adobe ffisjebdk OP Mar 30, 2019

Can you be specific, what besides bonds are you thinking of?

Oath Atinlay1 Mar 30, 2019

Don’t forget taxes!

Adobe ffisjebdk OP Mar 30, 2019

That's 100k after taxes

Oath Atinlay1 Mar 30, 2019

You still have to add that to what you’re overpaying for the money going into your mortgage.

Adobe ffisjebdk OP Mar 30, 2019

This is so weird to me. For the past six months I've been seeing posts about how the stock market is going to tank. There will be a recession and the housing market is going to crash. And all the advice I'm getting is don't pay off your house. If everything goes to hell and my house is paid off isn't that a better financial position to be in than anything else?

Microsoft yiqing Mar 30, 2019

No. If everything goes to hell you'd be better off with cash in the bank and some mortgage debt still.

Adobe ffisjebdk OP Mar 30, 2019

So your suggestion is don't pay off the mortgage and don't invest it?

Cisco cust24577 Mar 30, 2019

FNMA, you will thank me in 3 year

Foundation Medicine XeyE58 Mar 22, 2021

Hopefully OP didn’t listen to you

Credit Karma yhcdtfssgj Mar 30, 2019

Investment house

Microsoft newemp2017 Mar 30, 2019

Why do you want to wait for an year before paying off the 100k you have? I didn’t get that. You can try CIT bank savings account it has 2.45 interest rate. Also what’s the interest rate on your loan, if it’s higher than any investment that you can think of then shouldnt you just pay it off now?

Adobe ffisjebdk OP Mar 30, 2019

I owe 150k and have 100k now and will have 150k in 1 year. So paying 100k now doesn't eliminate the loan is just reduces it.

Amazon amazons Mar 30, 2019

When I was in your shoes, I paid off my mortgage. My stock would have increased in value faster than what I owed, but the peace of mind being nearly debt free was worth it for me.

Google PageRanker Mar 30, 2019

Savings account after tax will probably bring you less than what you are paying for mortgage. If you are going to pay the mortgage off anyway, put it in the mortgage.

LinkedIn Yotube Mar 30, 2019

Only correct logic, to the point.