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Old 01-31-2009, 01:45 PM
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jIM_Ohio jIM_Ohio is offline
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My point still exists you presented your conclusion before suggesting what problem you were fixing.

If you are looking for "risk free" and also state a need for this economy, I have argued here cash on hand is better than paying down mortgage, until the mortgage is paid off.

Meaning put the extra payments in I-bonds or TIPs (low risk), then once the account has enough to pay off the mortgage, cash it in.

Again paying down the mortgage is more of a convenient way to avoid the middle step (investing), it is not efficient as "risk free", it is not efficient as "liquidity" for this economy. It is efficient for peace of mind and lowest interest paid to bank.
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