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....

telegraph, you are right regarding the original discussion.

I still believe that my scenario is "safer" for someone in the intermediate stage of still working and not having accumulated the full amount necessary for a "safe" withdrawal of 4% during retirement. But, for someone already retired, a paid off mortgage makes more sense since it reduces the amount needed for a safe 4% withdrawal.
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.