I have $120k in savings account and currently paying a mortgage at 4.85%. Should I put the money towards the mortgage or are there other low-risk options with higher rates?

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This is a borderline call. My mortgage is at 2.X so I am not paying it off and putting it in HYSA that is at 4.X

For you, I would probably invest in market for the long run as it usually beats 4.X%

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Don't think there are any low risk options that will beat that rate, although tbills will come close (4.6% with no state tax).

I wouldn't pay that off. I'd invest in the market. Over the long run it has generally beaten that rate significantly.

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That is the equivalent of what you are saying, just worded differently

Emergency funds in HYSA/T-bills, and I would invest the rest into VTI/VXUS for long term investment

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👆this I don’t necessarily agreed with the exact ETFs. I think you should research that and come up with your own but the idea is spot on

Still at 4% that’s a low rate generally speaking. I tell people to not pay down their mortgage but rather keep that money in a HYSA until you can pay it off entirely. That way if something happens where let’s say you lose your job you will still have that money to fall back on.

Back in the 80s when rates were 10-20% it was smart to put everything at the home, but that’s not the case anymore obviously.

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