Submitted by passthemochi t3_10x4dix in personalfinance
I’m 37, bought a condo in august of 2020. It was $415,000. I put down 20% and took out a 3% loan on the rest for 30 years.
I also max out my 401k each paycheck and have about $2xx,xxx in it right now roughly.
I’m not very savvy but was talking to my dad and he was saying that since my 401k will be taxed a lot when I retire in a few decades, it makes more sense to take $500 and invest it into the principal payment of my house instead of the 401k right now. He says it’s the better return since it decreases my interest paid and I will pay off the house sooner. But I don’t know if that it’s true given compounding interest in my 401, the tax benefits in my income, etc. He says even given all that, it’s the better return.
Please help me decipher all this, I don’t know what to think.