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Author: rayvt Big gold star, 5000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75793  
Subject: Re: Roth IRA vs. Mortgage pre-pay Date: 1/14/1998 3:19 PM
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<<...with an Equity Acceleration program... My program is approx $400 to get in.>>

Forget it. Here's how you can save $400: Every month, include an extra 1/12th of a payment.

From a pure financial viewpoint, this is stupid, though. The extra/early principal payments earn you 7% (or whatever your mortgage rate is). But if you invest it, you'll earn an average of 10.7% A much better thing is to put the extra payments into the market.

I didn't notice he answered your question, though. The best things to do, in order are:
1) Your deductible IRA (only if it is deductable, though).
2) Your 401(k), up to the employer match.
3) Your Roth IRA (if you can't do #1).
4) Your 401(k), up to the max.

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