Playing w/100 G

[playerfl]

they may have an income stream of 5-6% but the value of the bonds could easily drop 5% in the next year. Things look ugly for bonds right now, at least US dollar bonds.

[Ray Zee]

when you pay down a mortgage you are getting a risk free return of that rate. when you buy into your bond fund as player indicates you arent, so a higher return than that is needed to overcome the risk factor. and i dont believe there are any investments out there that are really risk free paying like 6% after taxes are factored in.
even so if you could do all you say it is still close to a wash. it is all about risk reward and waht level of risk you are willing to take on for what return.

[punkass]

It should be noted that paying off a mortgage early is more effective the earlier in the mortgage you do it. It would be compound interest in the other way. Paying an extra 50 or 100 bucks a month in the early years can shed 4-5 years off the end.

What Mr. Ray Zee is saying that in the current state of the high uncertainty of the stock market, and low interest earned in money market/CD/savings, paying off a mortgage early is a sure thing.

[element00]

read rich dad poor dad hehe ive said it before and ill say it again.... invest in real estate it's much more stable than stocks.

[CptMisery]

It should be added that by paying off the mortgage and/or high interest credit you can use the money that you were paying monthly towards these debts and start an automatic investment plan using a diverse asset allocation that takes into account rebalancing on a regular basis. By spreading your assets across a diverse investment spectrum you can lessen your risk and see more consistent returns.