What now…?

[fmbike2]

Hey guys I’m bored and need help!
I have no consumer debt, and all I have is my mortgage. It’s around 600k right now I have left on it. So paying off my home early just doesn’t seem like the right move right now…
The stock market is boring AF but I’m still investing.
No kids,
I’m looking for minimum risk options here, nothing ridiculous and absurd.
But I’m bored, I need a goal or something to work towards with my money!
Any suggestions?

 

[davisalw]

@fmbike2 Believe it or not, there have been some pretty good GIC rates recently. I’ve locked in for 2 years at guaranteed 7% with performance potential of 10.5%

 

[fmbike2]

@davisalw I forgot about that!! Thank you

 

[fmbike2]

@davisalw Wait wouldn’t a GIC not be a good idea for the inflation we are getting rn?

 

[briankay]

@davisalw Thats still losing to inflation.

 

[bluebird29]

@fmbike2 Congrats, only a mortgage payment left is great.
I’m in the same boat I only have 350k left on my mortgage and not consumer debt.

If you are investing already why not pay off your mortgage. It’s a goal, it’s safe and once it’s paid off it’s yours and you’ll have more income coming in.

Cheers!

 

[ebust84]

@fmbike2 Max out your mortgage principal payment allowance per year.

 

[pebblesofhoward]

@fmbike2 600k left on your mortgage and you don't think it's a good idea to pay it off when you have the opportunity?

My first instinct is to advise is that you shake your head and get try not to let your ears get stuck as you pull it out of your sphincter.

But the simple math is if you can get a return higher then what the interest of your mortgage is then do that.

So based on the 600k figure you provided and the assumption that you are at least 5 years into a mortgage on initial of 750K. This would mean you are paying ~ $2,500 per month of interest alone at this point in your mortgage. So if you can make more then that in investments then do that otherwise pay down your mortgage as much as you can.

 

[briankay]

@pebblesofhoward Its because his rate must be less that current rates and/or inflation. It makes no sense to pay off a 3% when you could leverage the money in the markets during this lower period.

 

[pebblesofhoward]

@briankay Umm that's what I said. But you're making the mistake of using it as a simple percentage which doesn't work unless he's investing at the same capital amounts.

 

[fmbike2]

@pebblesofhoward I do like your “advice” although what you said is one opinion, I heard someone else say they rather put their money into investing rather than their mortgage because they’d rather have their money make money for them instead of just having a house to live in not making you money to live on… so there are so many different ways to go about this

 

[helenaqueens]

@fmbike2 count blackjack?