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How college savings account can be useful long after graduation
529 plans don’t need to collect dust after college. There are several ways to take advantage of leftover funds.
US stocks finished higher on Friday
• In a highly anticipated speech, Federal Reserve Chair Jerome Powell suggested interest rate cuts are imminent, saying “the time has come for policy to adjust.”
• New U.S. home sales in July hit their highest level in more than a year, rising by more than 10% as mortgage rates have steadily declined in recent weeks.
What to be on the lookout for today
• Durable goods orders for July.
• In earnings, Temu-owner PDD Holdings will report.
Should I pay off my mortgage or invest?
If you are one of the millions of homeowners with a mortgage, you might be wondering whether it makes sense to pay off your home loan or invest. If you have set up a budget and are fortunate enough to have a bit of extra money each month, it's only natural to wonder how to best put it to use.
The case for investing
In many cases, it can make the most financial sense to invest rather than paying more than your regular amount into a mortgage. This is especially true if you have access to a tax-advantaged account like an IRA or 401(k), or a mortgage with a relatively low interest rate if you bought or refinanced a home in the past few years.
Think of it this way: Paying down your mortgage is essentially saving you whatever interest rate your mortgage is at — but you may be able to earn more than that rate through investing.
The case for paying down your mortgage
There's something truly satisfying about being completely debt-free. Owing nothing on your home may give you peace of mind that's more meaningful than any incremental financial savings. Other reasons to consider paying down your mortgage might be a very high interest rate on your home loan, or if paying your mortgage down can help you get rid of PMI (private mortgage insurance).
Looking to learn more about investing? Check out SoFi Invest and learn about investing basics for beginners.
Today’s top stories
Prices at the pump are petering outGas prices have been trending down, and may well continue to do so, thanks to these factors.
Read more >> All eyes are on this AI companyEarnings season is nearing its end, but another key company is reporting results: NVIDIA. As the chipmaker and poster child for the artificial intelligence revolution, this could have repercussions for an entire industry and the market as a whole. Here’s what’s ahead on Wall Street.
Read more >> Everything you need to know about IRAsIndividual retirement accounts, or IRAs, can be a key piece of your personal finance planning. From different types to how you may use these funds, here’s what you need to know.
Read more >>Other news that caught our eye
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Target found an effective anti-theft measure: closing stores. The retail giant saw sales improve and inventory shrinkage decrease last quarter, after shuttering some theft-prone locations. But this strategy is turning some places into “retail deserts”.
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Nike and LEGO are teaming up for a multi-year partnership, with plans to launch co-branded products, content, and experiences starting next year.
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Remote work remains popular, with the percentage of days Americans work from home is still triple the pre-pandemic rate.
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Taco Bell will allow franchisees to opt out of serving breakfast starting in October, but expects only a “small minority” to exercise the option.
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Oilfield services giant Halliburton, which plays a key role in oil and gas supplies, was hit by a cyberattack last week, and took some systems offline in response.
Financial planner tip of the day
"The primary advantage of buying a fractional share is that investors are able to buy part of a stock that may otherwise be too expensive. In this way, fractional shares dismantle a large barrier to entry for those who want to invest. Fractional share investing can also give young or new investors access to stock markets so that they can learn about them and investing firsthand. For some, this hands-on approach to learning may be a more effective form of education than thinking about investment ideas or concepts in theory."
Brian Walsh, CFP® at SoFi