Quote:
Originally Posted by Altavia
Do you like earning interest?
If you had a 3% mortgage today, would you pay it off?
Unless you kept that bond money under a mattress, you'd earn more interest investing it.
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As I asked another poster, what would your calculation have been over the past five years when CD rates were below 3% or in the past few years when market returns were at or below zero? Today, investing the money rather than paying off the bond makes sense. Yesterday not so much and tomorrow is anybody's guess.
Also, don't forget to include the admin fee in the calculation of effective interest rate.
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Why do people insist on making claims without looking them up first, do they really think no one will check? Proof by emphatic assertion rarely works.
Confirmation bias is real; I can find any number of articles that say so.
Victor, NY - Randallstown, MD - Yakima, WA - Stevensville, MD - Village of Hillsborough
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