Retail investor: I throw every extra dollar at paying off my mortgage early. Debt free is the dream.


Me: What's your rate?
Retail investor: 3.5%.
Me: So you're racing to kill 3.5% debt... while the market does 10%+ & you could sell portfolio secured puts for even more on top?
Retail investor: But being debt free just feels safe.
Me: That's the key thing... you're picking a guaranteed 3.5% "return" over money that could compound way higher.
Retail investor: So paying it off early actually costs me?
Me: Massively, over the years. Cheap fixed debt is the best deal you'll ever get handed.
Don't race to pay off the cheapest debt you'll ever have...
Keep the cheap debt. Buy great companies & sell portfolio secured puts.
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