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Originally Posted by chassis
Lots of subjectivity here, mainly around how you psychologically view debt and your tolerance for debt. The example given above by BimmerDimmer is valid, and one of many ways to look at this.
Factors to consider:
- your age
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50
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Originally Posted by chassis
- your establishment, or not, in your career (accomplishments, clientele, resume)
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Pretty established and secure
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Originally Posted by chassis
- stability of your income (position, company, industry, etc)
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Founder, only person in the company with key-man insurance, and was voted #1 risk to the company over this COVID shit. So pretty stable I would say
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Originally Posted by chassis
- your family situation (spouse, kids, other dependents)
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All negative, which is possibly a negative in itself.
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Originally Posted by chassis
- financial obligations other than housing (retirement savings, college tuition, marriages, you get the picture)
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None. I just have to look after me
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Originally Posted by chassis
Being debt free is a powerful emotional situation to find oneself in. Paying down your mortgage is a step in that direction. Does that appeal to you?
If you can tolerate debt, your income is secure (is it really?), and your financial obligations are well covered, then paying down the mortgage may not be your first priority.
What about opening a discount brokerage account, such as Schwab or others, and investing on your own? Is there a reason you mentioned Edward Jones? Do you have a family member that works there?
Do you know how to create a spreadsheet to calculate net present value of a stream of cash flows? You need this, or you need someone to help you with this.
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I'm not the type that has to be debt free. When my Amex card gets over $100K I do start to freak out a bit and pay it down early. But I'm of with having a home loan - just trying to work out what's best.
I already have an account with an agent at Edward Jones - that's the only reason I mention it. I need a managed account as I do not have the interest to learn the markets to invest for myself.
I have done spreadsheets like that - where I fall down is taxes - what's deductible if interest paid, or what's deferred tax etc. Most of the simulations I have done based on my knowledge it seems to come out as a wash, but that's based on the assumptions I have made about earnings on a managed investment account.