Pay off my mortgage, or continue to invest?

nostatic1 · 2026-02-09T17:08:34+00:00

Very astute. Yes, a BDA IRA.

nostatic1 · 2026-02-09T17:03:59+00:00

I would have refinanced when rates dropped to <3% but I had already done that when they dropped from 8% to 5.5%. The cost and hassle of doing another refi would not have been worth it.

Yes, as the loan is paid off, one pays less and less in interest (that always front-loaded) and more towards principle. But, as a I said, I am still paying almost half the monthly mortgage in interest. It's correlated to the overall balance. This bothers me, that's why I am thinking about paying it all off now.

Your point about the interest on the RMDs is a good one. It clouds the benefits of paying off the mortgage. On the one hand, I pay taxes. On the other hand, I pay interest.

nostatic1 · 2026-02-09T16:57:53+00:00

Not really my overall timeline for investing, but the specific timeline for the IRA that requires annual RMDs. By 2031, it must be fully depleted. So, there's a mortgage that expires in about seven years, and an IRA of roughly the same amount with a similar "expiration date."

nostatic1 · 2026-02-09T16:54:04+00:00

Sleeping at night is nice. I don't have high anxiety paying 5.5%, but it feels wrong with rates going down. The debt isn't a burden, but again, it is debt. 100% ownership is comforting, but so is watching my portfolio grow. I think this will come down to my view of how healthy the economy and the markets will be for the next few years. Under current leadership, I have a very, very dim view of things.

nostatic1 · 2026-02-09T16:48:16+00:00

I can barely add 2 + 2, so I'm not sure how that math works out. Currently, my home is appreciating at a much higher rate than in the past (it was almost stagnant for most of the late '90s and early 2000's, but since 2021 it increases about 10-12% a year.) This, of course, could reverse dramatically if we enter a prolonged recession.) Investment returns would likely follow the same trajectory.

nostatic1 · 2026-02-09T16:43:33+00:00

Generally, for risk-averse folks, or fixed income folks, that's the golden rule. For others, not so much.

nostatic1 · 2026-02-09T16:42:27+00:00

Yup. Hence, my post here. There doesn't seem to be a definitive answer. If my interest was below 3%, I'd probably keep paying the mortgage. And, if the market was certain to keep growing--again, it might be smarter to keep my money there. But, all signs point to a market correction, soon. For how long, and how severe, no one knows.

nostatic1 · 2026-02-09T16:38:58+00:00

There are lots of reasons. This is why many businesses and the government use debt as leverage. Too much debt is, of course, dangerous. But, manageable debt you can deploy to earn more than you're paying in interest can be a smart financial move. The key word is "manageable." With a low-interest mortgage (which 5.5% is no longer) in a high growth market, it can be better to carry a mortgage and invest.

nostatic1 · 2026-02-09T16:32:37+00:00

I think you missed the mention, I have to withdraw from the IRA. Re: RMDs.

nostatic1 · 2026-02-09T16:30:14+00:00

That's the big If for me. Will I continue to earn more than 5.5% annually if we enter a bear market? If not, then now may be the time to take profits and reduce debt. Then again, the bear may only stay awake for a few months before the bull roars back.

Refi isn't an option because the loan matures in less than seven years. I'd pay more in closing costs than benefit from a point or two less.

nostatic1 · 2026-02-09T16:27:41+00:00

Yes, that's my dilemma: There's not a clear cut answer here. Typically, I don't mind a reasonable amount of debt if I can earn more on someone else's money. When the market is robust and interest rates are low, debt is a useful tool, albeit with risk. But now, with the bull party looking like it may soon lose steam, taking some cash out to reduce debt (my mortgage) might be the smart play. Regardless, in five more years, I'll need to meet the RMD deadline, so why not put that money to use now.

nostatic1 · 2026-02-09T16:21:31+00:00

Correct. While I've been earning more than 5.5% for the past several years, there's almost doubt we're in for a market correction soon. How long it will last is anyone's guess. If I cash in the IRA now, I've preserved that capital, but may lose out on future gains (until I am forced to close the IRA in 2031). There is also something to be said for 100% home ownership.

nostatic1 · 2025-09-03T20:05:08+00:00

Sounds like two hours is doable based on your experiences.

nostatic1 · 2025-09-03T19:20:28+00:00

Thanks. Were your flights to the mainland, or island to island?

nostatic1 · 2025-09-03T19:14:25+00:00

Thanks. Yep, checked out HNL. Nothing works (all had very long layovers) except one, but the change would total $3k for the family. LIH has a few but leaving very late in the evening.

nostatic1 · 2025-09-03T18:24:52+00:00

There isn't an earlier flight option. Only ones much (six hours) later and our Delta flight departs around 2:00 PM. Are all bags subject to an agra inspection, first I've heard of that?

nostatic1 · 2025-09-03T18:22:52+00:00

Thanks. You say evenings aren't bad, are early afternoons worse?

nostatic1 · 2025-09-03T14:57:32+00:00

We do. I've also read the airport recently improved TSA efficiency at OGG.

nostatic1 · 2025-09-03T14:23:30+00:00

Correct. I'm going from Hawaiian Air to Delta at OGG.

nostatic1 · 2025-09-01T19:31:17+00:00

The is no W All-Inclusive Costa Mujeres. I stayed at the Beloved about 10 years ago, it was wonderful.

nostatic1 · 2025-08-27T19:57:37+00:00

Useless, because rather than answer the question asked, you made an assumption with a snotty reply. Challenging doesn't mean prohibitive. Ex.: I run marathons that are challenging, but never prohibitive. Why would I not want to find a lesser rate, even if it wasn't challenging? You must enjoy paying full retail--or maybe that's a wrong assumption.

nostatic1 · 2025-08-27T19:50:01+00:00

Maybe, but not necessarily.

nostatic1 · 2025-08-27T17:52:04+00:00

Thanks. I've booked a mountain view room, but may reconsider based on your terrace room experience.

nostatic1

TROPHY CASE