By Craig Erwin, Ph.D.
I know a man with a Ph.D. in math who rushed to pay his mortgage off. Instead of paying off the 2.5% mortgage, he should have bought stocks. Now he sits on $400,000 in dormant equity. He should put that money to work in the stock market, where he could earn 8%, which beats 2.5%.
Did you pay your mortgage off early? If so, why? What are you doing to accumulate enough wealth to retire? Are you confident that what you are doing will prepare you sufficiently for retirement? What would you do differently if you bought another house now?
For more information on housing, mortgages, investing, wealth accumulation, and retirement, click on the following links:
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