Message Font: Serif | Sans-Serif
No. of Recommendations: 0

I have enough cash to pay off my mortgage. Am I better off paying off the mortgage (6.75%, 15 year fixed) or puting the money in an investment vehicle. I realize that the current method I am using (approximately 4% return in a money market account) is a loosing proposition even with the modest income and tax benefits (at 39.6%).

When I do the math it seems that over the 15 years if I put the money into an S&P index and get back even 10% and the return is taxed as long term capital gains at 20% I can come out significantly ahead. Unfortunately this approach flies in the face of my general inclination which is to pay off all of my debts if possible.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.