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by christocracy
2288 days ago
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It doesn’t make sense to pay off the mortgage when money is essentially free, where interest rate is lower than inflation. I believe it does make sense to invest what you can now in a balanced and diversified 60/40 portfolio. The current market turmoil is mere noise in the long term. The fundamentals are still solid. Companies continue to make profits and hire people. |
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Which is exactly my point.
Interest rates could skyrocket to 20% or more for yet another unknown unknown financial black swan event.
Or your home could be worth 25% of what it is today before you know it.
The ground could literally open up beneath your house and swallow it hole, leaving you with nothing but that massive debt obligation. (As most home insurance plans do not cover acts of god like sink holes).
That's an insanely rare and extreme example, but I hope you get my point.
It's best to get out while the getting-out is good.
If you have a large debt obligation that your current home value can pay off right now and then some, get rid of that debt and create some real wealth.
You've officially won the game of middle-class life at that point.
Then you can dream about what to do with that wealth until the cows come home... once you're actually wealthy and have the time and money to theorize how to properly invest that wealth.