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/biz/ - Business & Finance

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8388505 No.8388505 [Reply] [Original]

I need some help from some financially minded people who understand the math a little better than I do.

so I came up with an extra $5k from working a bunch of overtime.
I got 2 basic choices of what I am willing to spend it on

1. I put it all towards my IRA that did about 20% last year but will probably average out to 10% over the next 30 years

2. put it towards my mortgage now.. its a newer loan so paying lots of interest, and thinking if I put it towards the principal to pay off faster.

Which would be the better choice?

>> No.8388569

kekek /biz/ you so funny. None of you actually know a fucking thing do you?

>> No.8388698
File: 152 KB, 692x1000, hotties on a bike.jpg [View same] [iqdb] [saucenao] [google]
8388698

are these pictures a series or something?
hot girls in dresses doing healthy things makes me diamonds.

>> No.8388732

>>8388698
I bet you are a virgin

>> No.8388752

>>8388698
yeah some "artist" went to ukraine and basically paid hot chicks to take photos of them.

>> No.8388760

>>8388505
>>8388569
Both are fairly stupid ideas mate.

>> No.8388769

>>8388732
Wouldn’t a virgin be into really degenerate stuff since they’re probably watching tons of porn, and increasingly more extreme porn, nonstop?

>> No.8388796

>>8388769
ehh idk I was just replying so the thread would bump and maybe someone who knows something could explain what and why which decision would be best going back to my OP

>> No.8388806

>>8388505
Neither of those options sounds fun, but why don't you do the math and see which is better?

See whatever your interest is over the lifetime of the mortgage, and run that up against what it would be in you put 5K against the principal. See how much you save. Compare that to what you might expect in return from your IRA.

Personally, my strategy is to attack debt as fast as you can, so I would put it against the mortgage, but it may not be the best decision dollarwise.

>> No.8388898

>>8388806
>Personally, my strategy is to attack debt as fast as you can

this is the way I think too, but like you said it might not be the wise choice for the long term...

>> No.8388901

Which ira is giving you a 20% return?

>> No.8388951

>>8388901
growth focused fund setup with edward jones with my old company.

in 2017 it gave me 20%.. this wont be normal for the long run as last year was a good year. I think it will probably be somewhere around 10% average over the next few years.

>> No.8389001

>>8388505
Half on the mortgage, half in the IRA. The 2.5k over time will be enough to make it worth it, and the extra cash against the interest always helps. I kind of agree that attacking debt should be number one, but if you're young, you should be maxing out IRA contributions every year too.
Or, alternatively, 2k to the mortgage, 2k to IRA, 1k on the market on higher risk ETFs.

>> No.8389113

>>8388752
you're telling me they're all going around in those slutty dresses?

>> No.8389162

>>8388505
One is a shortterm benefit and one is in the long term why dont you split it up and reap a little of both

Dont see what this has to do with math