[quote=HLS]If you believe inflation will occur sooner rather than later, you should want as much debt as you can handle that will be paid back in future cheaper dollars.
If CD rates go back to 5%-8% or higher, it will have been foolish to have accelerated payments to pay off a 3%-4% mortgage.
The unknown is ‘when’
It’s also a matter of responsibility and having something better to do with the cash.
Never underestimate the importance of liquidity/cash.
There’s a big difference between being broke and having debt & having cash earning higher rates
of interest and having debt.[/quote]
I don’t think anyone have a crystal ball, but looking at what happen in the past, it’s pretty safe to say that we will see inflation over the next 30 years. So, it makes perfect sense to pay back as slow as possible and use the depreciating value of your dollar to your advantage.
I totally agree that there’s a HUGE difference between being broke and having debt & having cash earning higher interest rate to service the debt. Unlike UCGal, I’m not afraid of debt. However, I’m afraid of not having cash. My goal is to have my money work for me, instead of me working for my money. So, as long as I accumulate enough cash where the interest on that cash surpasses my debt & living expenses, then I’d call that retirement.
