tag:blogger.com,1999:blog-7332340.post114528967480304320..comments2024-02-28T05:22:35.956-05:00Comments on FinanceProfessor.com: Responsible Fools? The Tradeoff between Mortgage Prepayments and Tax-Deferred Retirement Savings by Jennifer Huang, Gene Amromin, Clemens SialmFinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-7332340.post-62955370969452281982010-08-30T03:42:56.845-04:002010-08-30T03:42:56.845-04:00I too definitely agree.. Indeed, I have compensate...I too definitely agree.. Indeed, I have compensated off mortgages in progress.<br />However, I am not convinced if I did it because it was a squat risk speculation or because I just required getting the debt down.Mortgagehttp://mortgageloanbrokers.co.uk/noreply@blogger.comtag:blogger.com,1999:blog-7332340.post-1145404422513781832006-04-18T19:53:00.000-04:002006-04-18T19:53:00.000-04:00Assuming your mortgage is accruing interest in the...Assuming your mortgage is accruing interest in the 4%-6% range, it makes sense to defer extra principal payments if you can generate a greater rate of return on those funds earmarked for early principal repayments. This should be easily doable with a reasonable equity portfolio and a 7+ year time window.<BR/><BR/>The effect is magnified by tax considerations: Long term capital gains are cut by Matthewhttps://www.blogger.com/profile/12848776456711020908noreply@blogger.comtag:blogger.com,1999:blog-7332340.post-1145298418630213132006-04-17T14:26:00.000-04:002006-04-17T14:26:00.000-04:00I definitely agree..indeed, I have paid off mortga...I definitely agree..indeed, I have paid off mortgages in advance...to this day however, I am not sure if I did it because it was a low risk investment or because I just wanted to get the debt down. However, in either case my utility did go up ;) so it is not irrational :) <BR/><BR/>thanks...<BR/><BR/>jimFinanceProfessorhttps://www.blogger.com/profile/05948754590238007311noreply@blogger.comtag:blogger.com,1999:blog-7332340.post-1145293663007793662006-04-17T13:07:00.000-04:002006-04-17T13:07:00.000-04:00The extract cited is an either/or proposition.Hoev...The extract cited is an either/or proposition.<BR/><BR/>Hoever, if one has maximized tax-deferred accounts for the year (including 401(k) and IRAs),applying prepayments to the mortgage makes sense as an extremely low-risk investment.Anonymousnoreply@blogger.com