Quote:
Originally Posted by Caymus
Don't pay off the mortgage or boat as long as US Treasuries are yielding more. Pay off the car. Personally, at my age I base my decisions on safe fixed income rates and not market returns, even though I'm about 70/30 equities/fixed income.
If investment rates drop you can always pay off the other loans.
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The OP is assuming that he can make 7 percent on the money not being used to pay off the loans. This is based on the S&P stock index, not Treasuries. So, since all 3 loans have an interest rate that is less than 7 percent, the logical thing to do is to not pay off any of the loans. Personally, I don't agree with the 7 percent assumption, but that is the OP's assumption.