Submitted by JDooBwah t3_1225kfh in personalfinance
Here's my situation - would value any input!
I'm a small business owner with a solid net worth. Already fully maxed out on all retirement vehicles & have a diversified stock portfolio.
The mortgage balance on my home is about $425,000. My interest rate is 4.125%.
I just received a large annual payment from a client. I am thinking about taking that amount and paying off my mortgage.
I know the traditional advice is, I shouldn't do this and should instead invest in an instrument that would on average yield more than 4.125%.
The issue is, I really - really - value the peace of mind associated with owning my home free and clear. I am also paranoid about some terrible circumstance eating up my nest egg followed by me regretting not paying off my home. I grew up fairly poor and I've always had this fear of "the bottom falling out" - so the idea of at least having a paid off home is very attractive to me.
Would it be insane to pay off my mortgage rather than invest this money? Would love any thoughts.