Anonymous wrote:1 million stuck in a house not working for us makes me worried.

Anonymous wrote:Don't take out a loan, but do invest the house payment going forward.
For kicks, calculate how much you would have if you had taken out 30 year loan and invested the extra money instead.

You worry too much.
Having a house paid off is a blessing. It may not make financial sense to some, but if you manage to pay off a home and live mortgage free, you have accomplished something that millions of people can never do.

Stop thinking of your house as a money fund. It's where you live. Just put the extra money towards other investments.

Anonymous wrote:

Anonymous wrote:Sell the house, move into a tent in the woods, and invest your sale proceeds.

I would if we were not raising 3 teens.

Put the money away and invest for their college, grad school, weddings or help with a first down payment. Or just boost your investments generally.

Anonymous wrote:Sell the house, move into a tent in the woods, and invest your sale proceeds.

I would if we were not raising 3 teens.

We made the excellent choice of a 15 year mortgage, which comes with significantly fewer interest payments than a 30 year. You forgot that part, OP.

Now we're done with the mortgage. We are putting money aside to deal with major maintenance issues that are sure to rear their ugly heads in a little bit (like changing the entire A/C ductwork to the differently-pressured new coolant).

We have invested in the stock market throughout the decades, even when paying our mortgage, and continue to do so, and we are paying for expensive private colleges for our kids.

We might upgrade to a new house, but this time it will be cash. None of that mortgage nonsense.

When we paid off our mortgage, we increased our taxable investing and also our spending. The benefits of a taxable account particularly if you plan to retire in your mid-50's are enormous. Taxable assets allow you to retire early more easily. We also wanted to enjoy our life when our kids were young. We went on nicer vacations and paid for pricey extracurriculars. We are now in our early 50s and preparing for retirement. Kids are in college and our expenses are low, making the decision that much easier.

Personally, I think investment properties are difficult to manage and not worth the effort. I'm a simple S&P 500 kind of investor.

Anonymous wrote:

Anonymous wrote:1 million stuck in a house not working for us makes me worried.

Anonymous wrote:Don't take out a loan, but do invest the house payment going forward.
For kicks, calculate how much you would have if you had taken out 30 year loan and invested the extra money instead.

Worried about what? Owning your own house?

In theory, assets should be generating ROI. I'm guessing that OP is trying to figure out how to leverage the paid-off house in ways that will generate income if it's not expected to appreciate in value otherwise.

I’m a low risk person, but I don’t think that OP made a mistake. I’m glad that with my low interest rate, that my house will be paid off in less than 10 years.
Open to investment suggestions though.

Anonymous wrote:1 million stuck in a house not working for us makes me worried.

Anonymous wrote:Don't take out a loan, but do invest the house payment going forward.
For kicks, calculate how much you would have if you had taken out 30 year loan and invested the extra money instead.

Worried about what? Owning your own house?

Anonymous wrote:Sell the house, move into a tent in the woods, and invest your sale proceeds.

Hahaha

Sell the house, move into a tent in the woods, and invest your sale proceeds.

1 million stuck in a house not working for us makes me worried.

Anonymous wrote:Don't take out a loan, but do invest the house payment going forward.
For kicks, calculate how much you would have if you had taken out 30 year loan and invested the extra money instead.

No, invest the money, not in real estate.

Don't take out a loan, but do invest the house payment going forward.
For kicks, calculate how much you would have if you had taken out 30 year loan and invested the extra money instead.

In 2 years we will have our house paid off. Its current market value is 1 million. We made a mistake of borrowing only for 15 years at a very low interest rate. Is it a good idea to use it to take out loan and buy investment properties? Otherwise it's sitting there doing nothing for us.