Monday, August 10, 2009

401k Or Mortgage?

Finally, my 401k has enough money in it again so that I could, if I wanted to, pay off my mortgage. That's after 21% tax and the 10% penalty. I'm not exactly sure how much tax would be taken, I'm just estimating. A few months ago, I could pay off the mortgage if I used the 401k and all of my savings. Now I could keep my savings. That is fun to think about. Of course I won't do it.

My 401k still isn't up to it's highest point (where it was in 2007) yet but it has been steadily climbing. I plan to keep it as my second retirement fund. With inflation I'll definitely need more money in 20 years. Plus, if I intend to continue hobbies like this dog rescue hobby I had better have a back up plan. Something tells me these dogs aren't going to support me in my old age.

10 comments:

Over the Cubicle Wall said...

It's a nice milestone regardless of whether you would actually do it. Little mental steps like that are good for staying motivated.

Daizy said...

Yes, it is fun to get there. I might have to work 5 years more to support my current puppy lifestyle though. My plans are always changing!

Middle Way said...

That's so awesome Daizy! Those puppies are lucky to have you.

Sallie's Niece said...

So you must have positive net worth now that you owe as much as your 401k plus your savings. That must be nice!

The Executioner said...

I think about this all the time. I think in the short term it would be a lot of fun to raid all of the retirement accounts and pay off the mortgage. I could sit around in my paid-off house and be a bum for a year or so.

Anonymous said...

I think if you count her land she's just about always had a positive net worth (am I right Daisy?).

Daisy, I liked you (as much as an anonymous blog reader might like someone they've never met) but now I absolutely love you for what you are doing for these doggies! I would like to think that if there is a heaven then there is a special place in it reserved for people like you who care for those (human or otherwise) that are in need.

Daizy said...

Middle Way, I hope I'm not teaching them bad habits. I've never had dogs before. I do like that there is no litter box though as long as they go outside.

Daizy said...

Sallie's Niece, that is right, hopefully it's all positive from here on...unless I take out a giant construction loan to build a house and proper walled yard for my foster dogs. :)

Daizy said...

Executioner, it would be fun! And it would be very tempting if I lost my job. It is a very nice security blanket just in case.

Daizy said...

Anonymous, thank you very much for your kind words. I am practicing on puppies and hope to one day work my way up to foster humans. I think I would need a proper home though. They frown upon locking children in crates. And yes, with my land I have had a positive net worth for a while, although I am more willing to cash my retirement fund than sell my land.