Don’t discount paying off a modest 6-7% car or student loan. That’s a guaranteed and tax free return on investment. Historically the stock market returns about a 7% annual ROI. Not having a payment every month can make a big difference for liquidity and peace of mind
Don’t discount paying off a modest 6-7% car or student loan. That’s a guaranteed and tax free return on investment. Historically the stock market returns about a 7% annual ROI. Not having a payment every month can make a big difference for liquidity and peace of mind
I would count that as “high,” especially when, as you suggest, you consider risk-adjusted rates.
Basically, just don’t prematurely pay off your mortgage if you have one of those 3% ones from a decade ago.