Reply to Paying off the morgatge, good or bad idea?

Forum Index » Money and Finances

Reply to "Paying off the morgatge, good or bad idea?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]There are two considerations: emotional and financial. For many people there is a sense of pride and security in owning a house outright, and that is fine.
The financial side is a little more complicated. Essentially it makes sense if you are very conservative in your assessment of likely returns in the market.[/quote]

I think it is often more complex.

Our retirement and post tax investment accounts are healthy (about $2.5 million) but we thought our mortgage debt ($800k at the time) was a limiting factor if we wanted to step off the hamster wheel and try a new career or retire early.  Although we are still putting the max away in our 401k accounts and a  very limited amount in our post tax accounts, all extra funds are being directed to our mortgage to get that off the books.

I am not saving money for the sake of saving money.  I am saving money so that I have financial freedom.  A large monthly bill limits that freedom.[/quote]

But that's only an issue if you have problems pulling from your investment account.  Personally I tend to lean towards the pay it down side, but mathematically the calculation doesn't change based on the reason you are saving money. It might change based on your discipline for saving money or your time horizon for withdrawing.[/quote]

I hear what you are saying, but in a downturn I don’t want to be in a position where I have to pull money from my investment account because I am locking in losses.  Maybe i’m skittish because of ‘08 and I think we are looking at a recession in the next several years, but putting everything in the market except for my emergency fund doesn’t seem like a balanced approach.  What am I missing?[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics