I recently paid off my mortgage for the third time. I did so with money that had been earning a much higher return than 3.x%. It wasn’t the maximal growth strategy but it accomplished several other priorities: it diversified some funds away from Mr. Market and into real estate, it reduced risk by moving money into an asset (primary residence) with special bankruptcy status if we were bankrupted by a medical or other calamity, and by shedding our largest monthly payment, it greatly reduced the amount of cash we need in our rainy day fund.
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I recently paid off my mortgage for the third time. I did so with money that had been earning a much higher return than 3.x%. It wasn’t the maximal growth strategy but it accomplished several other priorities: it diversified some funds away from Mr. Market and into real estate, it reduced risk by moving money into an asset (primary residence) with special bankruptcy status if we were bankrupted by a medical or other calamity, and by shedding our largest monthly payment, it greatly reduced the amount of cash we need in our rainy day fund.
Post: Taking Sides
Link to comment from June 8, 2021