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Very true about 7%. If you want to be fully insulated, 3% is better. However, assuming 7% means you are not entirely in stocks. It's more like 50% in stocks, and 50% in bonds and CDs. This is something to plan carefully though depending on current bond yields, etc. And the stock selection must be appropriate. But that's doable, I believe, assuming one has some cushion elsewhere.

Finally, my two sense, I would recommend avoiding the retirment accounts if at all possible. And before you do, do some number crunching - take out the amount of money that you could gain on having it in an IRA, including all fees, taxes, gains, etc and compare it to the reduced mortage and how much that'll let you put away extra and what that will turn back into.

To this I violently protest! Heck, why would anyone want to pay off a loan at 5 or 6% instead of investing in stocks, having decades in front of you? The taxes don't count because mortgage interest is tax deductible; the fees are almost nil these days. Or why would anyone want to forego free matching in a 401k or 403b?

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