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
4.7 • 3.2K Ratings
🗓️ 17 November 2021
⏱️ 18 minutes
🧾️ Download transcript
Summary
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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