Timeline for How does owning a home and paying on a mortgage fit into family savings and investment?
Current License: CC BY-SA 3.0
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| Jul 18, 2012 at 16:14 | comment | added | Scott Lawrence | @CoryKlein The reason I would pay extra on a mortgage would be to reduce the time needed to pay it off fully (which reduces the amount of your spend that goes to interest). If I were trying to preserve the principal value of an amount of money, I'd use money market funds or treasury inflation-protected securities (TIPS) ahead of extra money toward mortgage principal. Because you're under 30 (and presumably have a lot more time before retirement than someone in their 40s or 50s), you can afford to invest more aggressively. Preserving principal shouldn't be your primary investment strategy. | |
| Jul 16, 2012 at 23:39 | comment | added | Cory Klein | How does paying down the mortgage rate on your scale of good ways to preserve principle? How should I choose between paying extra on the mortgage vs buying money market funds or treasury inflation protected securities? | |
| Jul 16, 2012 at 19:31 | history | answered | Scott Lawrence | CC BY-SA 3.0 |