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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]Most people would call us. We have a paid off $3m home. Rich people are not stupid. How do you think we got rich? Of course we understand economics, leverage, opportunity costs, capital investment, etc. If you have the $$ it's liberating to pay off of the primary family home. [/quote] THis^^^ Then you are free to invest that money wherever you want to. Right now that money can earn a guaranteed 5%+ in CDs---$150K/year in cash guaranteed [/quote] Or you can invest all the money in the 5% cds and keep your 2.49% mortgage.[/quote] Which means you cut your return in half and continue giving money to a bank.[/quote] Huh? You really don't understand math. If you have the same amount of money---say 500k. If you put 500k into a 5% cd you get and end up with more than if you use a portion of it--say 300k to pay off the 2.49% mortgage. Then you only have 200k to put in the 5% cd. [/quote]
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