> Would that change the calculation? Yes, it would. As Imm says, this is actually conceptually similar to shifting out of stocks into bonds as you get older:

> Would that change the calculation? Yes, it would. As Imm says, this is actually conceptually similar to shifting out of stocks into bonds as you get older: lower returns, less risk. And of course some people do interest-only mortgages and whatnot, just like some people invest all their money in risky stocks... I agree that if one were actually approaching this as a personal financial decision one would need to do some careful calculation, as well as modeling of different inflation expectations and so forth. And that no one does this in practice.