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/biz/ - Business & Finance

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22553506 No.22553506 [Reply] [Original]

/biz/, I have a a bunch of money in what used to be a high interest savings account. At the beginning of the year, it was about 2.5%. Now, it's .6%. The money in there is not doing anything, so I'm wondering which of these options would you recommend?
1. Paying off a large chunk of my mortgage principal. It's 2.75%, 15 years, $200K.
2. Dumping a bunch of money into an index fund, and letting it ride.
Think an index fund would net me more than 2.75% in a reasonable time, considering we're in a pandemic?

>> No.22553665

you could also put it into a brown paper bag, get in your car drive to the grand canyon, take a shit in the bag, set it on fire, and throw it into the abyss

>> No.22553695

>>22553665
Imagine being this unfunny. Maybe Plebbit would be more your speed Mister Tryhard

>> No.22553710

>>22553506
You should have enough cash to support you for 1 year jobless at all times. After that, max retirement fund. After that, stocks and crypto.

>> No.22553794

>>22553506
2.75% is getting eaten by inflation. Hell, the fed is chasing over 2% and that is just the official rate. Depends on the index fund. Most are way overpriced. Passive investing and tech is a meme. Depends if you think the fed can keep the ship sailing. Buy some gold. Buy a range of completely distinct asset classes. Have a fair bit of cash for a market correction. Also, I have no idea what I'm talking about

>> No.22553845

>>22553695
unfunny? that was a serious suggestion!

>> No.22553888

>>22553506
how much money do you have? if you have more than 200k paying off the house wouldn't be a bad idea. If you have less than 200k just dump it into like 3 etf. One energy ETF, one REIT ETF and one total market fund

>> No.22554246

>>22553710
I'm good on the cash reserve and I'm maxing out my 401K. This money is in addition to that.
>>22553710
>>22553888
But where does paying off debt come in? Sure I could throw it into an ETF, but I look at paying off the mortgage quicker as netting me more money, guaranteed. Do you expect a fund to climb that quick?

>> No.22554265

>>22553845
J HI OMIT BALL CAN Z BBM L BC CNN

>> No.22554298

>>22554265
Imagine being this unfunny. Maybe Plebbit would be more your speed Mister Tryhard

>> No.22554302
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22554302

Buy precious metals

>> No.22554355

>>22554265
are you going to be ok, did you pass out on to the keyboard

>> No.22554679

>>22554246
gold and silver will spike soon
if you have any brains you buy that
and you don't invest in the stock market you fucking brainlet

>> No.22555022

>>22553506
You don't have to choose just one. Do half and half or put a nice big round number into the mortgage to make you feel good, and the rest into a meme investment of your choosing