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Should I pay off my mortgage?

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    #16
    Originally posted by JoseGaspar View Post
    Some great feedback and some very smart people here. Thank you for all of your insights...a lot to consider and sounds like I have some number crunching to do. The stock in question is NOT part of my 401k portfolio...completely seperate. I do not have any other 401k or savings. I am eligible for a pension (rare I know) which is why I haven't considered any other savings aside for my current 401k and my ongoing liquid savings
    if your intent is to pay off the loan either now or over 5 years, the analysis of maintaining the loan and investing should be analyzed over the horizon over which the loan is outstanding. you can look at the historical returns on whatever investment you chose as a starting point for what sort of spectrum of returns you might expect. then you would need to consider any changes you think are appropriate.

    a word on risk tolerance: when investing and selecting your risk tolerance, you need to avoid a gambling mentality. if your ability to support yourself and survive is at risk in order to achieve a lifestyle beyond what you need or want, you might want to inspect the underlying motivation. if you see a need to invest certain funds aggressively after you are nearly certain your retirement needs are met, if the motivation is healthy and beneficial to those around you, that is not gambling. when your intent is to gamble, you often miss clues that your decisions could cause you a lot of trouble and then wind up in a bad place. so it may be important to know how secure your future is before you decide your risk tolerance.

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