A mortgage prepayment is usually a good idea which I often recommend. My forecast is for the stock and bond markets to produce a low rate of return for the next several years so one may be able to get a better return by paying down their mortgage. If the S&P returned about 2 or 3% annually in the past decade and bonds are now paying about 3 to 4% then a mortgage pay down is attractive.
The recommendation needs to be tailored to each client’s needs. So if a client is self-employed or financially shaky they may need to …Read More