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Money Guy Show

Should You Pay Off Your Car Loan or Max Out Your 401(k)?

Money Guy Show

Brian Preston, CPA, CFP®, PFS and Bo Hanson, CFA, CFP® | Fee-Only Fiduciary Advisors

Investing, Education, Business

4.73.2K Ratings

🗓️ 17 November 2021

⏱️ 18 minutes

🧾️ Download transcript

Summary

Does it make more sense to pay off a car loan early or invest more into your 401(k)? We'll walk you through that question and more in today's Q&A episode! Subscribe on YouTube! Download FREE Financial Resources from the show Sign up for our Financial Order of Operations course Let’s make sure you’re on the path to financial success - then help you stay there! The Money Guy Show takes the edge off of personal finance. We’re financial advisors that believe anyone can be wealthy! First, LEARN smart financial principles. Next, APPLY those principles! Then watch your finances GROW! Visit our site for more info. Instagram Twitter Facebook TikTok Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

It's Brian Preston, the money guy, restoring order to your financial chaos, retirement,

0:07.0

investing, taxes.

0:09.0

You've got financial questions, he's got financial answers.

0:12.6

It's Brian Preston, the money guy.

0:16.5

This next question is from Mary.

0:19.1

Mary says, my husband says to attack the mortgage and pay off the house early.

0:23.4

I disagree.

0:24.4

I disagree and want to add more money towards our kids' 529 accounts.

0:29.5

Max, I'll offer our retirement accounts.

0:31.4

Which one is better?

0:33.2

He's in his mid-40s.

0:34.8

I am in my mid-30s.

0:36.7

We've got two different ages here to take an account.

0:39.9

Do you pay mortgage, attack that and knock that out?

0:43.3

Or do you fund 529s and how do you decide which of those to do?

0:48.6

Well Mary's given us a few more breadcrumbs here that actually makes this a very intriguing

0:52.3

question because I can already tell based upon how Mary has structured this question because

0:56.8

we know with the financial order of operations, you don't even really consider mortgage pay

1:01.9

off until you get to step 9, which is low interest step, which is what mortgage debt

1:07.0

is.

1:08.0

This is 2-3% range.

1:10.2

Well then Mary, through another interesting thing is talking about funding the kids.

...

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