What Should I do? Aggressively payoff Home Mortgage or Invest the Money in a Mutual Fund??

[Anonymous]

Anonymous wrote:

Anonymous wrote:But you're still investing in the market when you pay down your home, you're just investing in the market for real estate. Which also goes up and down, you just don't get a monthly appraisal. You are not investing in safety: you are playing a psychological trick on yourself to feel safer, at the probable cost of a lot of income. It's like you're buying the world's most expensive placebo.

I'm wiping out debt. Would I rather owe 600K or nothing....hmmm.

To echo PP, "Seriously, the world would be so much better if people could understand opportunity costs."

[Anonymous]

Anonymous wrote:But money is a finite object. The cost to using the money to pay for the mortgage means that money can't be used in investments that may get a better return. So if the rate of return is around 5% but the mortgage is only 3% then you are losing that 2% return

May. Not will, may.

[Anonymous]

I think that in the OP's case - they already have a fair amount invested so paying down their mortgage would be a way of not having all of their eggs in one basket.

If they were putting ALL of their money towards their mortgage and had no savings that would be unwise and a completely different story.

[Anonymous]

Dave Ramsay is very effective for people who do not have the self discipline to invest. I personally do not follow his advice and don't agree with it, but I can see its place .

I would pay the minimum on the mortgage and invest the balance in a blend of Vanguard index funds.