Originally posted by MrMarkyMark
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The other argument seems to be that you can put your money into savings at a higher interest rate than your compound mortgage rate. If you can do that, great. But I have to facepalm at the contradiction that you must have a huge war chest to mitigate risk while gambling your war chest on stocks and shares. I am pretty risk-averse so I am happy paying off my mortgage.
I'll crunch the numbers when the time comes but I suspect it will always be better to pull out money, even at the higher interest rate, and spend it, than it would be to sit on it for years and years. And if in the far future you suddenly need a lump sum dividend withdrawal, you will be shafted something fierce.
If I enjoy the contracting life enough to despise permieland and want to stick with it through thick and thin, I will probably keep more money in reserve to tide me through the cold jobless winters, but otherwise I'm gonna try and buy property.
At the end of the day we are high earners, we pay high tax and the only way not to pay it is to keep it locked away depreciating in value every day.
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