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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....


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.
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