Reply to Put 750$ a month in my mortgage or ETF?

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Reply to "Put 750$ a month in my mortgage or ETF?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]It's correct to check the interest rates

[b]ETF generally return 7% a year[/b] so I would invest vs pay the mortgage

If student loans are higher than 7% pay them otherwise invest[/quote]

This is the dumbest financial statement I have heard in a while, and that includes the woman who stopped her husband's retirement  funds to pay for a nanny.  [/quote]

Op here: please tell me more (I am dumb and don’t know what the average ETF return is, although I understand it is the long term trend that matter) [/quote]

NP. If you pay $10k extra on your mortgage this year, the total amount you owe will drop by roughly $10,400 (i.e., a 4% return). This will keep growing every year until the mortgage is paid off due to compounding. If you put 10k in an ETF and the market grew by 4%, you would have $10,400 at the end of the year. Ignoring tax differences and fees, you would be in the same place. Most people think an ETF will grow faster than 4% over the long term and hence paying off a 4% loan is not a good investment.[/quote]

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