Lots of Options

Q My retirement accounts are funded, I’ve got a brokerage account, an emergency fund and no credit card debt. What now? Should I invest in more stocks or real estate or make extra payments on my 4-percent mortgage? — C.S., Houston A Those are all good options. Paying down your mortgage is the least risky one, and would be like earning a guaranteed 4-percent return, since you’ll not be paying interest on any principal you pay off. Real estate investing isn’t as easy as it can appear. You’ll need to have a good grasp of the local market and must be willing to deal with the work and hassle that come with property ownership. Remember that real estate can tie up your money and that property values can fall or not grow quickly. The stock market can also drop, but it has always risen over long periods, beating most other alternatives, such as gold, bonds and even real estate. Think about whether you want to put in the time and work involved in real estate or stocks. Will you enjoy keeping up with your properties or your investments? If not, perhaps pay down the mortgage, or invest in a simple, broad-market index fund, such as one based on the S&P 500. *** Q What’s a trust? — A.G., Lancaster, Pennsylvania A It’s a legal structure that features someone (a “trustor”) giving control of property to a person or an institution (the “trustee”) for the benefit of someone else (the “beneficiary”). The beneficiary owns the property, but the trustee controls it -- usually for a limited period (such as until the beneficiary reaches a certain age). A trust is often part of an estate plan.