QUESTION: Barbara in Huntsville is retired, and her husband has several years left to work. They have $130,000 in savings accounts and a rental property. The rental property has a $150,000 mortgage, but everything else is paid for. Should they sell the rental and reinvest in the stock market?
ANSWER: I’d be investing in mutual funds, then I’d be paying the rental property off as fast as I could. That would be my game plan. But don’t get into mutual funds and then jump in and out. You pick good mutual funds with a long track record and you stay in them, no matter what it does. Then get the rental paid off as fast as possible.