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Originally Posted by Sweepsplayer
If you're over the income limit, no, you're not eligible for a Roth IRA. However, since you own your own business, there are other retirement options such as a SEP IRA, SIMPLE IRA, Keogh, etc. Your CPA should be able to steer you in the right direction.
This doesn't seem right to me. For option B, did you take into account that the $500 you were paying on the higher interest loan will be shifted to the lower interest loan after it's been paid off?
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According to my calculation,
If I put $500 extra towards principle to the small 15 yr loan (higher interest), I would pay off 90 month early with approximately $32,000 interest savings.
If I put $500 extra towards principle to the big 30 yr loan after 90 month, I would pay off 66 month early with approximately $114,000 interest savings.
Combined Interest Savings for paying $500 extra towards principle on small loan the $500 extra on the big loan after 90 month = approximately $146,000 interest savings.
Therefore, Paying $500 extra on large loan is the greater savings by approximately $56,000.
The logic is that while you're working on the smaller loan, the interest on the big loan is racking up even more.
If I am wrong, I would love to see some numbers, even if it's hypothetical numbers.
Thank you!