For those who are saving for retirement, would it be best now to hold onto that low-rate mortgage and try to make a higher return on one's money by investing it?
MarketWatch personal finance reporter looks at the pros and cons in whether mortgage borrowers would better accelerate pay-off of a low-interest home loan, or instead, invest that extra cash in stocks and bonds. Especially, now that as the cost of money is going up, investment yields may also rise. Combs notes that it's not all as simple as that when people factor in inevitable risks in investment tactics:
So why not hold onto that low-rate mortgage and try to make a higher return on your money by investing it? In a word: certainty.
“Do we know that markets are guaranteed or what’s going to happen? No. We don’t have a clue. They giveth and they taketh away,” said Michael Falk, CFA, a partner at Focus Consulting and chief strategist on a global hedge fund.