I received a good-sized life insurance policy last year when my ex-husband passed away. It's a little more than 3x my current mortgage. About a third of it went to my son's 529 fund, an emergency savings fund and a kitchen/bath remodel fund. Another third has been invested for retirement. I don't have any debt other than the mortgage, so didn't have to put anything toward that.
The other third I planned to use to pay off my mortgage, but I'm finding it hard to write the check. After a financially challenging couple of years when my ex was out of work and didn't contribute any child support, and given the current economic climate, there is much relief at having so much cash at hand.
I don't have any trouble paying the mortgage on my current income. My investments are currently running neck and neck with the interest rate on the mortgage (around 5 percent) - though of course they have the potential to go much higher, or lower. The "mortgage fund" is currently with ING Direct, earning about 1%.
Would you pay off your mortgage in this situation? Invest? Or do something else with the cash? I don't think I'll ever have such a large sum of money at my disposal again so am reluctant to part with it, although it would be wonderful to be completely debt-free.
it's not a bad financial problem to have, but I seem paralyzed by indecision at the moment.
The other third I planned to use to pay off my mortgage, but I'm finding it hard to write the check. After a financially challenging couple of years when my ex was out of work and didn't contribute any child support, and given the current economic climate, there is much relief at having so much cash at hand.
I don't have any trouble paying the mortgage on my current income. My investments are currently running neck and neck with the interest rate on the mortgage (around 5 percent) - though of course they have the potential to go much higher, or lower. The "mortgage fund" is currently with ING Direct, earning about 1%.
Would you pay off your mortgage in this situation? Invest? Or do something else with the cash? I don't think I'll ever have such a large sum of money at my disposal again so am reluctant to part with it, although it would be wonderful to be completely debt-free.
it's not a bad financial problem to have, but I seem paralyzed by indecision at the moment.