Should I pay off a low-rate mortgage or invest?

1041. If you have extra cash, should you pay off a low-interest mortgage or invest it? Laura answers a listener’s question about balancing financial math with the emotional peace of mind that comes from being mortgage-free. Key Takeaways: Paying off a debt yields a guaranteed return equal to your loan’s interest rate. Make sure you have a healthy emergency fund before making extra debt payments. Consistently investing 10% to 15% of your income for retirement and capturing any employer matching should take priority over prepaying a low-interest debt. Eliminate high-interest debt, like credit cards, as soon as possible. Low-interest, tax-deductible debt, such as a mortgage should be your lowest payoff priority. Younger investors benefit from decades of compounding market returns, while pre-retirees should focus on preserving wealth and reducing living expenses. Discover more from Money Girl! Facebook Newsletter Transcripts available at QuickandDirtyTips.com. Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308. Hosted on Acast. See acast.com/privacy for more information.