Pay Off Mortgage vs. Invest #personalfinance #doctor #podcast #money #investing #success

We're going to talk about mortgages. Most people understand the math behind a mortgage, right? You figure out your after tax interest rate and you look at the risk free rate in the market, what you can go get in a CD or in a high yield savings account or money market fund, and you go, well, if I can earn more elsewhere, maybe I shouldn't pay off the mortgage and I should carry it out. You know, that's the way the math works, right? If you can make 5.3% in the Vanguard Money Market Fund and you're paying 2.5% on your mortgage, you can make a mathematical case for dragging out your mortgage, at least for a while. Most mortgages coming out today are 6 and 7%, so you can only make 5% in the money market fund. It doesn't necessarily make as much sense to drag out your mortgage right now if you've just gotten one. But if you picked one up during those low interest years, you can make a mathematical case there. Now, obviously you got to run the numbers. You got to see what your goals are. You got to decide how much leverage risk is worth taking. You got to decide what your goals are when, if ever, you want to be mortgage debt free.