Hyperborea
Thinks s/he gets paid by the post
I know the whole series of discussions on keeping a mortgage and investing versus paying it off. This is a sub-topic of that discussion that I didn't see discussed. Let's set up a scenario:
- person in accumulation phase for FIRE
- asset allocation has a set %age towards bonds
- home with mortgage & HELOC (which floats at P +/- some %)
Wouldn't it make sense to use the bond allocation money to paydown the mortgage? At least the floating HELOC which will cost more than the bonds will return? This of course assumes that some "reasonable" amount is kept available in bond/bond-like things.
- person in accumulation phase for FIRE
- asset allocation has a set %age towards bonds
- home with mortgage & HELOC (which floats at P +/- some %)
Wouldn't it make sense to use the bond allocation money to paydown the mortgage? At least the floating HELOC which will cost more than the bonds will return? This of course assumes that some "reasonable" amount is kept available in bond/bond-like things.