Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
In my case, I like my 6.625% mortgage and I also like the safety of holding at least that much in cash in a tax-free municipal money market account as well. This gives me more flexibility than having a paid off mortgage and only 6 or 12 months of cash in an emergency fund. To each his or her own !

The basic discussion started whether it was wiser to put extra money into paying off your mortgage OR investing the money in the market at 12%.

You have indicated, above, that you would put your extra money into a tax free muni fund, that is likely giving you 4-5% at best interest, while paying a 6.25% mortgage....fine....

But that sure shoots holes in the proposition that was put forth that says by investing in the market, getting 12% per year on your stock investments, rather than paying down your mortgage by an extra $300/month, you would be way ahead after 13 years.

You obviously don't believe that if you are in muni MMF.

I prefer to have 20% of my assets in CDs/Bonds/MMF, and the rest in equities. (that gives me cash >>>>>> more than a six month cushion....)....maybe ten-12 years?????

I paid off my house in 7 years($150,000 mortgage , and also put 25% into other investments, and retired at 52. Saved 30-35% for 16 years...that did it.

more than 25 times required annual income as noted on the retire early board......

then again, I didn't buy a 1.4 million dollar house....

Print the post  


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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.