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No reason to make principal-only payments with interest rates so far below the avg. stock market return. Obviously if a bond paying 3% would be interesting to
by avidiax 5y ago
No reason to make principal-only payments with interest rates so far below the avg. stock market return.
Obviously if a bond paying 3% would be interesting to you, pay the mortgage off first before buying the bond.
- ncallaway 5y agoI agree that produces a better expected return, however the downside-risk from a bad outcome is worse for me than the expected upside gain. Essentially, I don't expect my overall happiness and satisfaction to be linearly correlated with my finances, and I expect that non-linearity to be such that I'd rather be more risk-averse in such a way that I have to give up some of the potential gain. If there were a world where I could _guarantee_ the avg. stock market return, then I'd of course take that offer, but sadly such guaranteed returns only exist in the form of scams and ponzi schemes.