Thoughts on more aggressively paying down mortgage vs investing? I don’t have any real debt outside my mortgage & currently have 180k in my 401k, insurance policy & invest in a 529 for my daughter’s

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Education. I don’t currently take advantage of ESPP & just wondering how best to leverage the $600 per month now that she’s in school & not daycare any longer. Any advice is appreciated!

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Do the ESPP - guaranteed 10% return. You can always sell immediately.

As far as mortgage versus investing - I think that’s really a personal comfort level question with no obvious right/wrong answer since potential gains/losses of investing aren’t known. But I think of it in terms of:

1) Are you comfortable with your cash savings? Paying off your mortgage early obviously saves you interest over time, but in exchange it does lock up cash in an illiquid asset.

2) Given the above, I tend to think if you plan to stay in your house for a long time, it’s worth paying down your mortgage since you’ll be able to realize those interest savings gains. If you plan to sell in a couple years or sooner, though, I’d invest to give you more cash available prior to selling your house and give you increased flexibility when it comes time to moving, etc.

Other than that, like I said, I think it’s personal preference for what feels right to you.

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Maybe consider paying off your mortgage to either free up cash monthly in the future for something, or reduce your utilized credit. Both could open up opportunities for you.

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Rule of thumb is if your debt is higher interest rate then the return on the investment you want to make, pay off debt. If the interest rate on your investment is higher, invest and make minimum payments.

This is a bit tricker because of tax implications but the point is valid. Don't invest at 6% if you're paying loans at 10%.

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Lots of reasons to not pay down fixed rate mortgages more quickly (although less so under new tax codes). Interest tax deductible, most gains in primary property can ultimately be accrued tax free, and investments way more liquid, so it usually pays to just stick with your regular payment.

That said, if a paid off mortgage will let you sleep better, then that’s more valuable than anything else!

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Thank you all- really helpful advice all around

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