Pay off frozen heloc or invest

[JWhite]

I posted last year about paying off my heloc. I have saved enough to pay it but with the current market returns is it better to pay off the frozen 116k heloc which is at 4.25 interest only due feb 2017 or invest 100k in etfs/mutual funds. I realize there is no sure bet in the market so should I just pay the heloc for a guaranteed 4.25 return?

Im 36
I make 200k per year gross
My expenses are 60-70k and I save 100k per year (the rest goes in taxes)
I have 200k in an emergency fund (this is where I would pay the heloc from or invest half)
194k in 401k
Own car
No cc debt
Home mortgage owe 320k on first (then heloc is that frozen 116k)
Home is worth 450k (so almost break even if I sold the house but I plan to keep it for the next 10-15 years)

[TBH]

I would personally pay of the HELOC. The stock market is high right now. Better to put money in gradually for dollar cost averaging, rather than putting in such a big amount all at once when the market is high. And I don't like that you owe so much on the house. I'd pay off the HELOC, then put money into the stock market gradually with monthly savings rather than all at once.

[disneysteve]

I would definitely pay off the debt, not essentially use borrowed money to invest. You make a great income. You have relatively low expenses. You're saving 50% of your gross. Get rid of the debt and then start building some real wealth.

[Retired To Win]

I would definitely pay off the debt, not essentially use borrowed money to invest. You make a great income. You have relatively low expenses. You're saving 50% of your gross. Get rid of the debt and then start building some real wealth.

I second this. If you pay off the Heloc, it's like getting a guaranteed 4.25% return. Nothing is guaranteed in the stock market. So, get that Heloc monkey off your back.

[Jerry91]

I agree that it will be a better idea to pay off a debt rather then investing the money. Once you pay off your debts, you will have enough free money left with yourself which you can invest later on.