luvmyfam444
DIS Veteran
- Joined
- Apr 4, 2005
how are you investing it?
100% this. Unless you purchased recently, you will get a higher rate of return that you are paying in interest, plus your interest payments are tax deductible.You need to look at your overall financial picture, not just a stand-alone windfall. Do you have kids going to college? Is your retirement set? Do you have debt? Some "standard" advice, like paying off your mortgage, might not be the right choice for you (if the payment is manageable and you've locked in a low interest rate, for example).
give my kids deposit money for their own homes (so what if they pay tax on it I'll give them extra for taxes),
That's ok too, can't take it with me. Only solution to sharing wealth between generations is a long term infusion.YOU would be taxed not those you gift money to.
I guess the best answer is "one size does not fit ball". Kids college and hoping to retire early were reasons we worked to pay off our mortgage early. Took us 17 years, but we had it paid off 5 years before our oldest hit college. The equity in the house would be a reserve for tuition if we needed it. Our $1,100 a month payment instead went into the college fund for 5 years, and then went directly to paying tuition for the 8 years we had kids in College. Then that $1,100 went directly to retirement savings with the equity in the house a reserve for retirement.You need to look at your overall financial picture, not just a stand-alone windfall. Do you have kids going to college? Is your retirement set? Do you have debt? Some "standard" advice, like paying off your mortgage, might not be the right choice for you (if the payment is manageable and you've locked in a low interest rate, for example).