Reply to If paying off your mortgage is dumb, why do so many rich people do it?

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Reply to "If paying off your mortgage is dumb, why do so many rich people do it?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Not paying off a mortgage is financially the right decision.  However, the emotional aspect to finances is real and for some folks putting the mortgage in the rear view mirror brings a lot of relief.  No judgement here.[/quote]

In hot real estate markets, the only way to buy a house is to have a cash offer.  And if you don't get the mortgage when you buy, you cannot just go get a mortgage on a home later.

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+1000

Haven't had a mortgage in over a decade and haven't had a car loan in over 2 decades.  [b]It's nice to jump off the American way of financing everything.[/b]  [/quote]

You are #goals. [/quote]

Thanks!

I was wrong—we did get one car loan, because only way to get the $1500 cash back was to “finance” at 0.9%.  So I got the loan and paid it off the first month.  Seemed silly to not get the $1500 rebate otherwise

Once you jump off the financing trail it’s liberating.  And east to not take car loans—keep them 7-10 years, save for next one and sell the used car for $10-20k (we buy luxury cars now). 
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I had a car loan when it was 0% and there were rebates.  I just put the cash for the car in an account earning more than that and set it on autopay.  I do the same thing with my 2.49% mortgage I have more than that in 100% safe investments earning more than that and have set it at autopay.  I'll walk away with 30k+ more that way.[/quote]

I know I could earn more with safe investments, but now at point it doesn’t matter.  At point where I only need 30-40% in stocks, rest can be in Mm and homes and still earn millions off the safe stuff yearly.  Given we are still working, no reason to take more risks.

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If you’re at this point it doesn’t matter and you can choose the path of least resistance. [/quote]

Yes---and it's much easier to sleep when the market is down.   When you have enough, you don't need to put 80-90% in the stock market.  Keep some in the market and preserver the rest and live off the interest or keep working and reinvesting the interest but it's niceknowing that we could live off the interest when we retire without any issues

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Well sure having so much you don't have to worry is a great thing.  But pre-paying low interest rate mortgages aren't the best way to get to that point of security for most of us.[/quote]

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