I know someone who recently retired, sold his expensive home, and bought a new home in a cheaper area outright with cash. He had a fixed income that would easi

I know someone who recently retired, sold his expensive home, and bought a new home in a cheaper area outright with cash. He had a fixed income that would easily cover his living expenses. He had an investment portfolio that he is planning to pass on to his family. By investing his cash and getting a mortgage on his home- he certainly would have made enough money to cover his mortgage on interest. But, he'd be at risk of going cash flow negative, and having to liquidate some of his investments to cover his mortgage + lifestyle. He knew that having to liquidate investments would bother him- it'd be a lot harder to justify that vacation if he'd have to sell some stocks. Those stocks are for his family in his mind. By buying that home outright, he now knows that he's going to be cash flow positive for as long as he's alive. He'll never have to dip into his stocks. And he'll never have to stretch a dollar. It's not a strategy that you'd come up with on a spreadsheet, but he's one of the happiest guys I know