Payroll deductions made before taxes are taken out (aka pre-tax deductions) have the advantage of reducing your taxable income, while those made after taxes (aka post-tax deductions) don't. Post-tax deductions, though, may still have other advantages. Mandatory Deductions Taxes Perhaps the ...
Essentially, paying off our mortgage, that has a 5% fixed interest rate, is the same as earning 5% in an investment account. (There are a lot of tax considerations that can make this more complex like tax brackets, tax deductions, availability of tax deferred accounts, etc… plus inflation....