401K Financial Planning

Brian K asked:

I’m trying to figure out which way is the better route to go here.

I put in 10% of my income to the 401k plan at work which the company matches dollar for dollar up to 4%. I thought about dropping my 401k down to the comany match rate of 4% and use the extra money to pay off a second mortgage which is running me about 7.5 % interest. I figured I could pay it off in a little over a year if I did this.

Which is the better route? pay off early or just wait the 3 years and keep the 401k at 10%?
I paid off my car last year and I am using that extra money as well to pay off the second mortgage. It’s a 15 year loan that will be paid off in 5 years when I use my car payments. If I add the extra “401k+ money, it will be paid off next year. And I do not have a credit card bill either


Question posted courtesy of: Dorothy