Despite being a low earner (45k/year) I’ve always managed to save. If only I had been more financially literate earlier in life I could be more ahead with investments. Considering the following, do I invest more in my brokerage or pay off a high interest mortgage?:
Roth: This year I made my first contribution and maxed it out in SWYJX 2055 Fund
HYSA: Started this year with $17k at 3.4%
CD: 14-mo locked CD with $15k 4.10%
Brokerage: Started at Schwab with small investments in SWPPX, VXUS, and SCHD
401K: Only have $40k from a previous employer and waiting for my current job to hopefully start a 401k in January (it’s a small new company)
Mortgage: I have 27 years left on a $280k mortgage that I share with my partner. Unfortunately it’s a high interest rate of 6.8%. Other than a mortgage I have NO other debt.
So I have $300/mo I can contribute to something but do I put it towards the brokerage or mortgage? Do I split the difference? I absolutely plan to invest and hold until I’m old. I have so much to learn. When the CD matures I plan to use part of it to max the Roth for 2027. And maybe put the rest in SGOV until Roth 2028 contribution.
I suppose my goal is to assume I won’t receive any social security, retire at 65-67 with $1m+? I want to pay off the mortgage early but I also have a lot of catching up to do for retirement.
Posted by its-lechuga