Is it wise to pay more on my mortgage or to put more in my 401K ?

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Typically it is wiser to put money into your debt than into your savings.  Sure you can use your savings to buy things, whereas the money you put into your debt just goes to someone else so they can spend it, but you’ll save money in the long run if you pay off your debt before you start saving.

That is not to say don’t put anything into your 401K, or RRSP for Canadians, but typically the interest on any 401K, or other savings options, is not as high as the interest you’ll pay on any given type of debt.  If you could make more money in savings than debt then everyone would take a loan out of the bank to put into a savings account, banks don’t get rich by being stupid.

401K, or RRSP’s are a little different than a typical savings account, or mutual fund.  There are tax breaks that can make it more beneficial to put money in them rather than a mortgage; however, there is one key piece of advice that I would give to you.  If you pay your mortgage off you’ll own your house forever, you may not be able to afford it one day due to taxes, but you’ll always have the option of selling it for a smaller place, if you put your money into a 401K you may have to use that money to pay off your mortgage one day.  Interest rates are fairly low these days, if you don’t pay your mortgage off now and interest rates skyrocket you stand to lose a great deal of money, if they don’t sky rocket you haven’t really lost anything.

Play if safe, pay off that mortgage.

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