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Originally Posted by jefelump
The author acknowledges the perfect 20/20 vision of hindsight. However, he disregards (or at least doesn't mention in this article) the risk taken when an investment doesn't perform like the Vanguard Wellington fund.
So let's see how the investment in the same fund would have fared if this person had paid off his mortgage, and then opened an investment account and deposited the equivalent of his old monthly mortgage payment each month. I'm sure it wouldn't grow as fast, due to the comparitively small opening principal balance, but over time as more money is added it would grow and eventually surpass the numbers posted above (because the scenario posted doesn't ever mention adding more funds to the account each month). And he would have no risk of not being able to make his mortgage payment and losing his house.
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somehow you fail to grasp a crtical point.
there is no set right or wrong answer, it depends on the individual, and their acceptance/aversion to risk.
don't want risk? don't leverage, remove the debt, but you give up the reward.
me, I have varied income streams, so I paid off my house. I sleep better at night.
but I do so fully understanding that I have forgone the upside the monies tied up in my home would get otherwise, and understanding my home price appreciation will be much less compared to other investments over the long term.