Quote:
Originally Posted by Randall55
Once you accumulate the wealth, you use the money to make more money. You shouldn't pay off debts that are lower than what you can earn. Keeping a 2.5% mortgage while earning 5+ percent in investments makes sense to me.
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That is all based upon the assumption that there is no abnormal event your assumed risk profile of your investments can't withstand. Investments are an inherently risky holding, and assuming that the current rates and levels will continue through the life of the decision is the uncertainty that many people do not want to take.
I want the house free and clear, and not have to assume that all my investments can withstand any unforeseen event. I have lost everything once, that is not happening again, and I am not the only one who can get surprised by unforeseen events.
remember, as with all things in life, everything works fine, until it doesn't.