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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....





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