Has anyone thought about cashing out investments to pay off their mortgage early? Mine’s sitting just below 5%, and while the numbers suggest I’d be better off staying invested, the thought of having no mortgage at all is really appealing. Part of me feels like peace of mind and financial freedom might outweigh the math. Curious if anyone else has considered it?

like
Posting as :
works at
You are currently posting as works at

Not advisable. Cashing out investments means you will have tax to pay in your gains, so less cash than you think free to go towards mortgage. 5% is about half of the average assumed S&p return, as mentioned, you'll be better in the market. Keep your investments, if you want to pay the mortgage off early, start diverting what you would put into your investment account as extra towards your principal as you are able. Signed, a financial advisor

like

That’s fair. The tax hit is a good point. I guess the emotional side of being debt-free sometimes clouds the math for me, but your logic definitely checks out.

Do not pay off your mortgage, especially if you still get a tax benefit. Having a debt free home exposes you to title fraud which is on the rise and unfortunately almost nothing is being done to stop it. Also not having a loan or mortgage makes it very hard for you to get a loan or mortgage (insane I know) You have to use credit to get credit. You have to really crunch the numbers to figure out how much mortgage you benefit from at tax time.

like

Wow, I hadn’t thought about the title fraud part. That’s a little unsettling. Would you mind providing a bit more insight? It does make sense that keeping an active mortgage could actually have some hidden benefits.

I wish I had saved it, but there was an article about a couple that crunched all the numbers to that. The takeaway, as tempting as it is, there’s just a lot to it. We also aren’t exactly set up to be debt-free, which makes a lot of things harder.

Yeah, that really sums it up. As nice as “debt-free” sounds, the system isn’t exactly built to reward it I suppose...

Logically, if you’re reasonably able to keep making your mortgage payments it’s best to keep your after tax investments as they are. However, personal finance is not just logical, it’s also emotional. If it will give you better peace of mind, it won’t be the end of the world to cash stock in to pay it off.

Well said. Personal finance decisions aren’t purely logical. There’s always an emotional layer that makes the “right” choice different for everyone.

Related Posts

Hi all, I have an offer from PwC AC ...could anyone please enlighten me with the working culture, wlb, and any other useful inputs..this is for the strategy role

What is expected CTC for lateral hires for PWC AC for the position of guidewire business analyst ? Total YOE-7..5 as BA, 2 as others.

like

PwC India Hi,
What is the Salary range which is offered for Senoir Associate - Reviewer - Assest Wealth Management at PwC ?
Can someone please help me with this.PwC India

like

Has anyone bought/ done the HRCI Certificate in Diversity and Inclusion in HR Management? I already have my PHR, but I’m looking to gain more knowledge/skills and beef up my resume. Is it worth doing? The course is $239 and you get 12 Recert credits with it.

like

Hi All, Can anyone let me know what will be the In-hand salary for the below breakup
Company : Kyndryl
YOE : 4
Skill : Network and security

Also I am waiting for an offer from NTT data, any suggestions on how much I should negotiate based on the current offered CTC

Post Photo
like
like

Is it normal for KPMG Canada to 'ghost' candidates?

like

I am currently looking for job change. I have total 8+ years working experience developing web applications using Angular, JavaScript etc. Any help or suggestions are appreciated.

like

I joined one company can I abscond within 1 day. Please suggest flock.

like

What are the wages like in Singapore for consultants and techies? I can parse this on Glassdoor/Payscale/Monster, but it’s not clear how country of origin affects pay, if at all.

like

What’s a fair operations manager salary

For someone who only has experience in project management, what’s another role or industry that would be good to consider and uses similar skills for a career pivot?
I’m getting a little bored and want to do something different, but not sure what that could be, or if I should look into getting certificates or higher education. Any former PMs, what do you do now and how did you get there?

like

Professional assessment tests...

Can anyone recommend online professional assessment tests for profiling personality / aptitudes, rather than for skills?

Or can you share which assessments you've seen private equity firms using most often?

Thaaanks.

like

90 Days notice period has 2 phases.

Initial phase - Candidates struggling to get interview calls.

Ending phase - Companies struggling to match a higher offer.

30 days notice period can really solve everyone's struggle.

like

Is it easy or difficult to get confirmation in IBM after the probation period of 6 months. I have 14yrs of experience and have been provided a Business Manager role in Band 8.
What are the criteria to get the confirmation?

Anyone got such mail : IBM – We have great news! Benefit by advancing to December,2021
Actually my doj is 20 January,2022.

like

Hi - Is there any cut-off day/date each month, by which Managers need to confirm their choice of Promotions in Workday ? For eg : ESP cycle changes need to be inputted by 15th and are confirmed on the 20th, I have been informed.

Is there any such days/dates for confirming promotions on Workday ?

like

Hello Fishes, I've joined IBM last year( Oct 2021). Am I eligible for hike this year? If yes how much % can I expect? YOE - 4.2 years & pmr ratio - 1.12 band - 6B

like

Joining IBM in SAP MM technology soon, they shared that I will be on bench initially, so need help to know if have better projects here? How will be the process here

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal