Reply to Invest more in 529 v. Paying down mortgage

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[quote=Anonymous]We are in a similar situation and have been trying to think it through based on the following considerations:

- the hurdle rate for the 529 or other investments vs. the mortgage interest rate, factoring in effects of inflation and inflation expectations.

- job security

- long-term return on equities or bonds, as well as expectations of returns for a portfolio adjusted for inflation, with expectations of returns considering macroeconomic conditions related to secular stagnation, which may persist for another decade or more if Japan is any guide, absent a massive shock such as a crash or a major war.

- whether we can trust that our 6 year old will go to college.

- expectations of increases in costs of attendance and potential for government intervention in the next 12 years to increase affordability.

- desirability of alternative options to high cost US colleges, e.g. Canada, UK, Australia.

It's a tough call and for us it turns on our personal pessimism about the future. We decided to pay off our mortgage before our child graduates high school and try to pay as much as we can for college through our wages and any additional savings we can accrue.[/quote]

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