Should I pay off my mortgage loan or invest with the money I am receiving from an inheritance?

My spouse and I will be inheriting about $750,000 to $800,000. The payoff balance of our mortgage is estimated at about $180,000 at 3.5 percent APR for 30 years. Would it be worthwhile to allocate some of the money we are inheriting to pay off the mortgage loan? We still have 27 years left to pay. Alternatively, should I invest the money and continue paying my mortgage?

Debt, Estate Planning, Investing
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4 weeks ago

This really depends on what type of investor you are.  If you are a conservative investor, whose portfolio allocation will likely not earn more than 3.5% over the long run, or if you are nervous investor, and will likely pull money out of the market at the next down-turn, then you are better-off taking the sure thing by paying down your debt.  However, if you are a moderate to aggressive long-term investor (5+ years at least), and can handle the ups and downs of the markets, without getting out at the wrong time (i.e. during the next significant downturn), then statistically speaking, you are likely to do much better than 3.5% in the market, so you should invest.

5 weeks ago
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