Investing at age 28 鈥?best place to put money?

I am 28 years old, married with no kids (yet). I have my house paid off ($170k), $80k in savings accounts, and $40k in 401k We both make around $50k and we are able to save about $40k per year. In addition, we contribute about 10% to 401k. We have no debt.

We would like to upgrade to a larger home in about 5 years. Would it be better to pay cash for the new home or take out a mortgage and invest money elsewhere? I鈥檝e heard some people say it鈥檚 not smart to pay off your mortgage if you can make more somewhere else but I鈥檓 not sure...

How would you invest with the above scenario? (how much should be invested in home vs. savings accounts vs. retirement, etc)

You can make more money in the stock market than having it tied up in a house. Invest most of that $80K now!!!

I applaud your Money Management skills.

You are way ahead of the pack.

You and your spouse should sit down and discuss your long term goals. The current desired total to retire comfortably is approx $1,250,000

You are definately headed in that direction. By the time you retire - it will likely require close to or slightly above $2M

After you and your spouse discuss your long range plans - children etc. Sit down with a financial planner who can help you get there. Diversification is key.

Real Estate income is almost a mandatory part of your portfolio, Stocks, Bonds, Roth IRA etc

Read the Automatic Millionaire by David Bach. It is really an eye opener. Last, don't make any sudden moves. You are so on point it's amazing!

Congratulations and live a happy life.

In regards to the mortgage question, it is hard to say what the mortgage and savings rates will be in 5 years, but in general, it is better to have a mortgage and use the money to invest in stocks, bonds, mutual funds or real estate. Also keep in mind that mortgage interest in tax deductible.

I am also wondering if you and your wife have considered looking a upgrading now. Interest rates are still low and real estate is now a buyer's market. With $170K in home equity, that would be a solid down payment on any home. Also with your dual income, you should be able to handle a significant mortgage payment.

Money magazine is very imformative, I would highly recommend a subscription to learn about various scenarios. You and your wife need to make informed decisons when it comes to allocation.

You are way ahead of the game, great job!

Good luck!

contact nitron circle of experts

As the mutual funds are designed by investment companies to buy shares in different stocks and other securities, the mutual fund investor along with their ownership of shares of the mutual fund, have a restricted claim to ownership on few of the securities held by the mutual fund. Besides mutual funds provide the dual advantages of diversification and professional money management services to manage the money invested in the fund.

Shareholders can buy more shares or sell the shares they own whenever they wish. But these transactions should be carried out carefully since the prices of the shares vary daily and can significantly affect your profits.

Find a good financial planner you trust to help you sort out the myriad of options and considerations. Nobody can give you real good answers without an in-depth knowledge of your current situation and your goals.

Whatever you do, don't blindly follow the advice of TV or Radio financial "experts". Heed the fine print at the end of the show:"this on only for entertainment"!