Explore the 1,000’s of free tax and finance questions answered by the BIDaWIZ experts.

Back to list

QUESTION DETAIL

Related User

Votes

Where is the best place to put extra money for retirement after you max out your 401k and IRA?


ANSWER


The BIDaWIZ Team's Answer:

The best use of any remaining discretionary income is to "pay down"

your residential mortgage. The extra payments will be applied

to principal, and this constitutes a tax free investment, because

when you sell the personal residence, the first $250K of gain

is tax exempt [$500K if married filing jointly]. See IRC 121(b). Paying

off your home mortgage is the first step towards financial prosperity. 

The BIDaWIZ Team

 

 

  • Currently 4.6190/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
623 Ans.