As a fiduciary financial advisor in Collierville, Holland Capital helps mid-career corporate professionals who already save steadily in a 401(k) decide whether extra money should pay down the mortgage or build taxable investments. In Collierville, we meet clients by appointment at the Regus office in Southwind, and talk by video or phone between meetings.
A 401(k) on track. A mortgage with years left. Extra money each month and two places it could go.
Collierville is home to about 51,500 people. The median household income is about $139,000, and the median home value is about $486,000. FedEx World Tech Center is one of the town’s largest employers.
Once your 401(k) saving is established, any extra money needs a direction. Paying down the mortgage early removes a debt. Investing in a taxable account keeps the money available and invested. Neither choice is right for everyone. Ask any advisor whether they must act in your best interest and how their pay works, since one of these choices may affect their fee.
Confirm the Foundation First
Before choosing, we check that your emergency savings and 401(k) contributions are where your plan needs them. If they are not, we include those needs in the comparison before directing extra money elsewhere.
Comparing the Two Paths
We compare both paths over time. Paying down the mortgage reduces future interest at a known mortgage rate. Investing may earn more or less than that, and the earnings are taxed along the way. We also weigh how easily you could reach the money, how long you plan to stay in the home and how you feel about debt.
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The Order Matters
Five retirement decisions and why timing matters.
Building the Taxable Account
If investing wins, where each investment sits matters. Holding more tax-efficient investments in the taxable account can reduce the taxable income it produces each year. Our guide to asset location explains the idea.
Managing the Investments
Our investment management runs the taxable account with your 401(k) included in the overall mix.
How We Work with Clients in Collierville
Holland Capital Management is an independent registered investment adviser and a fiduciary. M. Chad Holland, CFA, CFP® works directly with clients and is responsible for the planning and advice.
Bring your mortgage statement, your latest 401(k) statement, recent pay stubs and statements for any savings or brokerage accounts.
You get a written plan showing how much extra to direct each month and where it should go.
The first conversation is free. If there is work worth doing after that, we will define the scope and cost before you decide whether to move forward.
Our offices are in Charlotte, North Carolina and Winter Park, Florida. We work with clients in Collierville primarily by video or phone. When an in-person meeting makes sense, we meet by appointment at the Regus center in Southwind Office Center, 8295 Tournament Drive, Suite 150, Memphis.
For clients whose investments we manage, accounts are held directly at Charles Schwab in the client’s own name. Holland Capital manages the investments but does not take custody of client assets. If a client ever needs in-person assistance from Schwab, the closest branch is in Germantown at 7926 Wolf River Boulevard.
We work with clients throughout Tennessee. You can see the other Tennessee communities we serve here.
Our what we do page explains how a planning engagement works.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Frequently Asked Questions
Is It Better to Pay Off the Mortgage or Invest?
It depends on your mortgage rate, your other savings, your tax situation and how much you value being debt-free. Some households split the extra money between both. We run the numbers for your situation and explain the trade-offs.
Why Does It Matter That a Fiduciary Financial Advisor Answers This?
Holland Capital acts as a fiduciary when providing financial planning and investment advice. For this decision, that means we may recommend paying down the mortgage, even though that money would not be managed by us.
Money invested in an account we manage adds to our fee, and we point that out before you decide.
Is There a Place to Meet Near Collierville?
Yes. Regus has a center in Southwind Office Center, 8295 Tournament Drive, Memphis, roughly a 20-minute drive from Collierville Town Square. Meetings there are by appointment.
Video calls are available for shorter conversations.
Photo: Katien13 / Wikimedia Commons / CC BY-SA 4.0, cropped.
