Money magazine lists . Over the next few days, I'll list each dilemma, what Money suggests as the best option, my take on the issue, and additional FMF posts on the topic. Here goes:
Dilemma #4: Prepay Your Mortgage OR Invest
Money's suggestion: Investing wins.
My take: I have a mixed response on this one, but for the most part, I'm going against the flow.
I would first fully refund my retirement plans (for me it was my 401k) and THEN I would pay off debt. I know that Money recommends investing that second portion as well, but we simply wanted to be rid of the debt and owe nothing to anyone. Could we have made more money with another option. Probably. Did we rest better at night knowing we didn't owe anyone anything? Certainly. Have we done well financially as a result of our plan. Yep, our net worth has continued to grow dramatically throughout the years.