[DirtyDog]

I don't have a matching 401k scenario so any money I invest will be straight out of my pocket. I am wondering if it would be prudent to get a 15 year loan on my home rather than put money into a Roth IRA? I would save hundreds of thousands in interest and own my home much sooner.

Does anyone know of online caculators that calculate returns on different investment scenarios?

 

[Westy]

There is an OK calculator Here.

I'm not sure how things are up there but you should take about 25% off of the interest payments due to the tax deduction. Or however the rates/rules apply in Canadiastan.

Whoops I got you and the current RM confused. No Canada to see here folks. Keep moving along.

 

[BurlyShirley]

Put all you got into hotcakes

 

[Echo]

I've been told that at current mortgage rates you are better off getting a longer term mortgage and investing your money.

 

[-dustin]

Put all you got into hotcakes

or fruitpies.

 

[Westy]

You can always overpay the mortgage but if you fall into tough times in say 10 years it is a lot tougher to pay less.

 

[narlus]

another thing to consider is that Roth payments are tax-deductible, whereas a higher principle payment (basically shortening the life of the mortgage, while *also* paying less overall in interest, which is deductible) isn't.

 

[Qman]

another thing to consider is that Roth payments are tax-deductible, whereas a higher principle payment (basically shortening the life of the mortgage, while *also* paying less overall in interest, which is deductible) isn't.

whoa----
Pretty sure that Roth contributions are not tax deductible but any gains are tax free at distribution. If that is not the case, I need to fire my accountant... Traditional IRA contributions are tax deductible (assuming you meet all the income requirements etc.)
but the gains are tax deferred. That is, they tax any gains at distribution which should work out well since you'll conceivably be in a lower tax bracket when you start taking distributions.

As for the mortgage situation, it depends a lot on the rate difference, amount of mortgage, any closing fees or points, do you have consumer debt, etc. Also, a Roth isn't the best comparison since it is after tax money you contribute and nothing is deductible. Roth's make a lot of sense if you're young and find some good investments to put your money into. I'd recommend going thru a brokerage house (eTrade, Scottrade, Schwab, etc.) for a Roth instead of a bank so you can choose your investments instead of taking the meager % the bank will give you.
We did a 15 year bcz the rate was good (5.125%) and the monthly payment difference was only ~$200.
If your employer doesn't match anything in your 401k, you might want to look into not putting money into that and open an IRA, Roth or Traditional, depending on where you want to take your tax benefit; now or later.
If your employer has stellar investment choices in the 401k plan, do that instead of a traditional IRA since 401k contributions are tax dedcuctible too. If you think you can do better than the choices they offer, skip their plan and do the traditional IRA.

ww.irs.gov has some good info if you can find it in their search engine.

 

[partsbara]

http://www.jeacle.ie/mortgage/

this is a good mortgage calc...

 

[narlus]

whoa----

yeah, i am likely talking out my ar$e. i was confusing roths w/ 401K contributions, which i take advantage of via maxing out and getting an employee match.