I’m a 43-year-old single male with no debt other than a mortgage on my recently purchased primary residence. Here’s a snapshot of my financial situation:
- Income: $145K salary, maxing out my 401(k) and Roth IRA.
- Home Purchase: Bought a $410K house, put down $120K, and have a $295K mortgage at a 6% interest rate.
- Net Worth: ~$1.6M
- $925K in brokerage: 1/3 in S&P 500 index, 1/3 in RTX stock (up 45%), and 1/3 in various other tech stocks.
- $450K in 401(k): Not planning to touch this.
- $50K emergency fund: In a checking account earning nothing.
- $120K in home equity.
- $115K in SWVXX: Earning 5.1% (0.35% expense ratio).
I’m contemplating whether to cash in the $115K in SWVXX and put it toward the mortgage principal, or to invest it in the S&P 500 index and let it grow. Another option is selling my RTX stock to pay off the mortgage.
I’m looking for some feedback on the best course of action. Should I focus on reducing my mortgage or continue investing? Any thoughts or advice would be greatly appreciated. Thanks!