Let's say that each month I have an extra $1000. Should I use that money to pay down a 4% mortgage, or should I invest it in an index fund that is all but guaranteed to earn more than that?
> that is all but guaranteed to earn more than that?
say SP500 nominal avg is around 10% - no brainer, yes? but that is an avg of many 30-year windows. some 30-year windows might not be that kind to you. market crash in say first 5-6 years will hurt you a lot
so there is just no certainty here except we think (just like we expect appreciation on the house) we’ll end up on the “right” side of this.
and of course not to mention the most obvious, roughly 99.56% of people will not be investing this money to get more than 4%…
