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Also ignored in the discussion so far (as far I can determine) is whether a person is disciplined enough to actually invest and not raise spending because liquid asset pool appears larger with a a mortgaeg and invest the amount in better returning assets. There has been discussion about whether the other assets are always better returning, but it seems that everyone assumed that the discipline to invest existed (without so much as a second thought).

Perhaps a reasonably assumption for most on these boards, but not necessarily, especially if one spouse posts on the boards and the other, spendy spouse does not.

Doing a brief scan of the comments in this thread that was my thought. My belief is that the average person (which geneally isn't the person reading these boards) produces below average (SP500) returns.

Giving a person $250K to invest instead of having a house paid off IMO is usually a recipe for disaster. Unless the typical person can take that money and get something safe like a CD/annuity which is paying more than a mortgage rate I just think for a significant majority of people they will obtain returns lower than their mortgage in the long run.

For myself I haven't really decided what I will do although I tend to lean towards having a house paid off or at least a mortgage with substantial equity in the house.

I don't think there is one answer for everyone. It really depends on the persons investing skills.

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