No. of Recommendations: 7
There are certainly psychological issue which could factor in. But one other issue is cash flow and a down market.


I don't know where your investments are sitting right now which you would use to pay off the mortgage. I am going to assume in the stock market. Stocks are at a pretty high point right now (I don't know and will not even try to predict the actual high).

Here is one scenario for you. Stocks decline as part of a recession. If you had sold some stocks to pay for the mortgage at the high, you could reduce your withdrawal rate during the down market to a greater extent because you do not have a mortgage payment.

One common piece of advice is to minimize withdrawals during bear markets. That is much easier to do with no mortgage payment.

So in a way, you could view paying off the mortgage as method to minimize risk of a near term recession.


c
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