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Old 01-09-2009, 12:13 PM   #14
pilotbob
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Join Date: Jan 2007
Location: Tampa, FL USA
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Quote:
Originally Posted by lilac_jive View Post
You've just described the snowball method. I have to say though I think its a good thing to save some emergency cash while paying off cards, just in case. Then once those are done worry about the 401k (and max it out!)
Well, you still have the credit cards if there is an emergency right. Seems silly to me to be saving while you are paying 12% or more on a CC.

Quote:
Originally Posted by lilac_jive View Post
I don't want to pay my mortgage off early since I probably will only stay there for a couple years. My rate will be around 5%, so my money is better of in the stock market long term where I can earn 8-12%
Ah... but I can guarantee you that for every $ extra of principal you pay off you will get 5% (if that is your rate). How much did you make in the stock market in 2008? Many LOST money. In 2008 I made 6.7ish% on the about 8k-10k extra I paid on my mortgage. And, because the balance is lower each month I can't put extra payment for some reason, since the principal is lower more of the payment is applied to the principal... more snowball effect.

BOb
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