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Old 01-08-2015, 07:20 AM   #21
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Over 20 years, I SHOULD do better investing it elsewhere it appears.
It depends on what 20 year period you are taking about... and if you live that long. Sometimes, a bird in the hand is worth two in the bush.

A rhetorical question... If you were planing on SS at 62, rather than 70, then definitely pay it off. That shows you cannot wait one year for an 8% return. How would you wait 20 years?
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Old 01-08-2015, 08:16 AM   #22
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It depends on what 20 year period you are taking about... and if you live that long. Sometimes, a bird in the hand is worth two in the bush.

A rhetorical question... If you were planing on SS at 62, rather than 70, then definitely pay it off. That shows you cannot wait one year for an 8% return. How would you wait 20 years?
Not sure if I follow the point.
After one year I might be better off with investing over paying it off.
We don't know, but if i assume average markets, I would be ahead with investing it in the market over the fixed return of paying it off.

I'm like 50-50 on this.
One of my thoughts was to pay about half the remaining balance and invest the other half so I'm doing half of each. But then if I include a recent property that I bought and paid cash for, I'm essentially "paying down" that amount of money already on that property vs taking out a new loan. So in effect, I'm slipping the difference.

Paying it off would help cashflow, but since I'm currently working, that isn't the primary importance. Growing overall networth would be which I have a better opportunity of doing by investing it I believe (but no one knows).
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Old 01-08-2015, 09:31 AM   #23
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Not sure if I follow the point.

Growing overall networth would be which I have a better opportunity of doing by investing it I believe (but no one knows).
I believe that there have been 20 year periods that a 3.5% return may have been better than the market. Also, if you need the full 20 years to make the market return better, and you do not last the 20 years, the initial cash flow would have been better.

If you are taking SS at 62 because you want it right away, that is a sign you cannot wait the 20 years for the market to get a better return than a mortgage payoff. Waiting on SS is a much better bet than waiting on the market.

NW, if you cannot effectively get at it, is not too helpful in retirement income.
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Old 01-08-2015, 09:56 AM   #24
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What's the rate on the mortgage?
What's your income tax rate if the interest is or isn't on your tax return?

Seems like despite the interest I'll incur, My 5% rate is more like a 3.4% rate after taxes due to high state income tax and 25% fed tax.

Over 20 years, I SHOULD do better investing it elsewhere it appears.
I have five mortgages range 117k highest to 86k lowest. 4.625 to 4.125 respectively. 28% tax bracket, no state. 28 yrs to go on mortgages.

I'm thinking don't payoff and invest until FIRE then payoff one or two to increase cash-flow when I go to a lower tax bracket.
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Old 01-08-2015, 10:14 AM   #25
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I have five mortgages range 117k highest to 86k lowest. 4.625 to 4.125 respectively. 28% tax bracket, no state. 28 yrs to go on mortgages.

I'm thinking don't payoff and invest until FIRE then payoff one or two to increase cash-flow when I go to a lower tax bracket.
This makes sense to me.
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