Talk of The Villages Florida - View Single Post - Pay off Bond or Not?
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Old 03-08-2013, 09:38 AM
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Quote:
Originally Posted by villagerjack View Post
Most calculations ignore "opportunity cost", the amount you would receive investing these same funds and the fact that part of your monthly payment includes principal amortization. I left my funds in a Vanguard High Yield Fund instead of paying off my bond and I am confident I am ahead of the game.

Thanks for pointing that out. Somehow the previous poster, regardless of how long their post was, seemed to ignore this significant variable. But I can see both sides of the coin since the bond interest is not deductible.