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]For us, paying off our house was freeing.  We still saved for college and retirement but we had a lower-cost house.  [b]I don't see why you wouldn't pay it off.[/b]  Now, if something happens we know we will be ok in terms of housing and can live on far less if we need to.  Now instead of the mortgage, we can invest the money we would have spent on the mortgage or do things we might not have done otherwise.[/quote]

I wouldn't pay it off because the math speaks in favor of keeping the mortgage due to low interest rates. I understand the emotional aspect of being mortgage free in case something happens. But I more of a risk taker and I value the returns more than the peace of mind. If I didn't have a risk taker mindset, I wouldn't have quit my good paying nine to five job to start my own business. 
Most people are more conservative and play it safe. That's why most people aren't entrepreneurs. Just like they value the safety of a nine to five W2 job more, they will also value the safety of a mortgage free house more. People with entrepreneurial mindset think differently.  [/quote]

Wrong.  I'm a business owner and value the security of a paid-off house precisely because I take more risk in my day job and my income is variable.[/quote]

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