Pay off your house before throwing money away in a 401(k)

Posted by Kevin Ryan | May 16, 2014 | 0 Comments

Wall Street loves to push 401(k) accounts.   While most Americans slave away for 10, 20, and up to 40 years in some cases paying off their monthly mortgage obligations,  Wall Street collects trillions of dollars in 401(k) deposits.

Take a moment to go to a website like  Run the amortization calculator and plug in the current balance of your mortgage loan, the interest rate, and the number of years remaining on the term of the loan.  You will be shocked at the amount of interest you will pay out over the entire term of the loan.  Consider this… simply applying the funds you are dumping mindlessly into your 401(k) to your mortgage loan balance as an extra monthly payment to principal, you will save tens of thousands of dollars, and possible more than 100,000 off the total cost of that mortgage just by accelerating it.  When you reach retirement age, your home will be long paid off under this approach, assuming you do this in your 30s or early 40s.    A 401(k) can be wiped out overnite.  A home, or a roof over your head, cannot (as long as you pay those homeowners insurance premiums).   I would rather have a paid off home and a secure roof over my family before dumping precious dollars into a 401(k) account, even if the employer would match the contribution up to a small percentage

About the Author

Kevin Ryan

"I'll never be the kind of attorney your creditors want me to be. I'll always be the kind of attorney you NEED me to be. Call me. I'll BE there for you. And I'll make them go away."  -Kevin Ryan, Attorney at Law Kevin Ryan is a graduate of the College of Wooster and the Cleveland Marshall College of Law. He is admitted to practice before all Alabama State Courts, the United States District Court for the Southern District of Alabama, and the United States Bankruptcy Court for the Southern District of Alabama. The United States Bankruptcy Court is a part of the United States District Court. Since 1998, Mr. Ryan has represented thousands of individual clients in bankruptcy, criminal, divorce, probate, personal injury, and real estate matters.  Attorney Ryan is also a licensed real estate agent in Alabama.  He handles  Bank-owned properties, short sales, and conventional sales in addition to conventional real estate listings.   This wide range of experience enables Attorney Ryan to take a wider look at your legal matter. It is important to consult with an attorney who can see from experience how other legal issues may affect your situation, and advise you accordingly. Personal Info Kevin Ryan is a member of First Baptist Church in Silverhill, Alabama. He resides in Silverhill with his wife Jessica and their three children. Committed to helping our Clients achieve a fresh financial start Our practice focuses primarily on consumer bankruptcy matters under Chapter 7 and Chapter 13 of the United States Bankruptcy Code.  Our law practice also includes matters where bankruptcy litigation, appellate work, or involvement in civil lawsuits is needed by a client.     No representation is made that the quality of any of these legal services is of higher quality than another attorney or law firm.   The United States Bankruptcy Code requires the following notice:  We are a Debt Relief Agency, which means we help people get legal relief from their Debts through the bankruptcy process. Interested in learning more about our bankruptcy attorney near Mobile, Alabama? Contact Us for help with chapter 7 bankruptcy or chapter 13 bankruptcy in Mobile, Baldwin and Washington counties. Education Juris Doctor, Cleveland Marshall College of Law, 1997 Employed full time as a paralegal while attending law school in the evenings. B.A., The College of Wooster, 1994 NCAA Div.III All Conference (N.C.A.C.) Football Team : Defense 1993; Most Inspirational Senior Award 1993; Co-captain 1993; Letterman 1991-1993; Phi Sigma Alapha Fraternity 1991-1994; Athletic Director Jurisdictions Admitted to Practice Alabama


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I'll BE there for you.

I'll never be the kind of attorney your creditors want me to be. I'll always be the kind of attorney you NEED me to be. Call me. I'll BE there for you. - Kevin Ryan, Attorney at Law