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Personal Finance and Investing

padfun

(1,857 posts)

12. If it's a low interest rate, keep the mortgage

Reply to OAITW r.2.0 (Original post)

Wed Nov 10, 2021, 08:12 PM

Nov 2021

It will be gaining value while you have a loan that is less than inflation. If you're up to it, buy some rental property (and headaches).

Since you are getting on in years (We're almost the same age) go travel. Go to the places where you want to see. The problem with this that many countries are still having covid issues and it might not be the best time to travel around.

I have quite a bit saved, not quite as much as you, and what I do is eat good food, and feed my cats good food.

Use the money to do the things that bring you happiness.

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So, I have a recent influx of cash from a sold home that I shared with my sibs. [View all] OAITW r.2.0 Nov 2021 OP

you have a interest deduction? Shellback Squid Nov 2021 #1

Mortgage Interest deduction? When did that change? OAITW r.2.0 Nov 2021 #11

It's still around, but the standard deduction was doubled by Trump etc., so progree Nov 2021 #20

call up a financial adviser lapfog_1 Nov 2021 #2

Invest it. Keep the mortgage tax deduction. brush Nov 2021 #3

I can't advise you on all of it, but iwillalwayswonderwhy Nov 2021 #4

Very cool idea! crud Nov 2021 #5

Well, I have all of their artwork on my walls and their Oriental Rugs... OAITW r.2.0 Nov 2021 #7

That's great iwillalwayswonderwhy Nov 2021 #15

Continuity, I think. OAITW r.2.0 Nov 2021 #16

Pay it off jpak Nov 2021 #6

I like the idea of owing no one, nothing. OAITW r.2.0 Nov 2021 #9

Pay off your debts Deuxcents Nov 2021 #8

The only real debt I have is the mortgage. OAITW r.2.0 Nov 2021 #26

Depends on your tax bracket, interest rate and other circumstances, but Ocelot II Nov 2021 #10

If it's a low interest rate, keep the mortgage padfun Nov 2021 #12

I am happy where I am at. OAITW r.2.0 Nov 2021 #13

Then I see no reason not to pay off the mortgage. padfun Nov 2021 #14

I budget the shit out of my finances. OAITW r.2.0 Nov 2021 #19

There was no mortgage. OAITW r.2.0 Nov 2021 #18

The up side of paying off the house is it's Phoenix61 Nov 2021 #17

Sadly, we never own....we use while we are alive, then other stuff happens. OAITW r.2.0 Nov 2021 #21

Lucky me, I can work until I say, that's it. OAITW r.2.0 Nov 2021 #27

Not an advisor, but... jmbar2 Nov 2021 #22

At 68, you shouldn't be looking at 'higher yield" viva la Nov 2021 #23

Learned my lesson back in 2000. OAITW r.2.0 Nov 2021 #24

Very true about your point OAITW r.2.0 Nov 2021 #28

Invest. The S&P made 24% so far this year. Mortgage rates are about 3%. Scrivener7 Nov 2021 #25

Yup....I am inclined to agree. OAITW r.2.0 Nov 2021 #30

I use Vanguard for an S&P index fund. They also have plenty of other mutual funds and Scrivener7 Nov 2021 #32

The pain of the late 90's stock bubble killed. OAITW r.2.0 Nov 2021 #33

I lost a lot in that. But those crashes can work the other way too. During the late 80s, early 90s Scrivener7 Nov 2021 #34

The home mortgage interest deduction has always been over-rated, IMHO..... lastlib Nov 2021 #29

But the logic of post 25 makes sense. OAITW r.2.0 Nov 2021 #31