Quote:
Originally Posted by downeaster
There is no right or wrong thing to do. It can be argued both ways. Personal preference and don't let anyone tell you you made a mistake.
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Downeaster,
I have to slightly disagree. It is not personal preference - but as Caroline points out, there are better and worse choices for individual situations from a financial point of view.
However, if the thought of debt keeps you up at night, paying it off may be the right choice and here I agree this is personal preference.
Also, you cannot compare interest rate on the bond to what your portfolio is earning. You need to compare the future value of the sum of the bond payments (principal and interest) to the future value of the investments you would liquidate - including compounded earnings. Let's hope 5 years from now we earn more than 2%.