patrick.net

B.A.C.A.H. says

Easy Peasey.
Pay off mortgage,

Why, you can make more investing it than tying it up, not liquid, in a house.

B.A.C.A.H. says

pay down kids' student loans.

Dumb, that an even bigger waste of money with less of a return. It's THEIR college, they pay for it, not you.

Why, you can make more investing it than tying it up, not liquid, in a house.

For most people out there, who are the working Joes and not investment experts, the best thing they can do with extra funds is pay off all credit cards and similar loans, then pay down the mortgage.

HeadSet says

For most people out there, who are the working Joes and not investment experts, the best thing they can do with extra funds is pay off all credit cards and similar loans, then pay down the mortgage.

For credit cards and other loans, who's interest rates are higher than what they can get on their investments, that's what should happen. But, many people have refied their mortgages the last few years, at rates in the 3's, so historically, they can get a higher return NOT paying off the mortgage and investing it. Plus, if they take the MID, it reduces their net mortgage rate even more.

In the event they need some quick cash (like in a job loss), it's a lot easier to sell some investments to raise cash then to try and apply for a home equity loan to pull cash from the house.

I'd actually go all in for pre-smog era '72 Buick Electra 225

I know you are joking, but a '70 or so Buick Electra 225 Convertible is one of my dream cars.

But, many people have refied their mortgages the last few years, at rates in the 3's, so historically, they can get a higher return NOT paying off the mortgage and investing it. Plus, if they take the MID, it reduces their net mortgage rate even more.

I hear you, but remember that MID is more for richer folks. A Joe with a 3.5% $250k loan or less will only pay about $8.5k or so in interest, and the Standard Deduction is $12.7k for married, soon to be $24k. And with the $24k SD, even a $400k loan MID would be around half of the SD. And Joe is unlikely to find a risk free 3.5% tax free investment, so Joe's best bet is actually to pay down the mortgage and keep credit cards on the side for emergencies.

Depending on the state, Medicaid will pay for some of the assisted living costs. Because kids were dumping their folks into assisted living, absconding with their accumulated wealth, and having Joe taxpayer pick up the bill, usually now the senior citizen has to have exhausted all or most of their wealth beforehand, or iit may be applied to pay the cost of assisted living.

So, Medicaid plus the senior hands over their SS check, and if the are lucky, pension check, and the cost may be covered. Yet another reason to stop the flow of illegal gimmegrants.

https://www.payingforseniorcare.com/medicaid-waivers/assisted-living.html

MrMagic says

B.A.C.A.H. says

Easy Peasey.
Pay off mortgage,

Why, you can make more investing it than tying it up, not liquid, in a house.

B.A.C.A.H. says

pay down kids' student loans.

Dumb, that an even bigger waste of money with less of a return. It's THEIR college, they pay for it, not you.

Silly MrMagic,

you know everything that's best for everyone without even knowing them.