Core Insights - The article discusses the financial decisions one should consider when receiving a windfall, particularly focusing on the case of an individual named Julia who is set to inherit $50,000 and is contemplating whether to pay down her mortgage or invest the money instead [1][2]. Group 1: Financial Decision-Making - Paying off a mortgage early can provide emotional comfort and security, but it may not always be the most financially sound decision [3]. - Julia's current mortgage rate of 3.5% is considered low compared to the average U.S. mortgage rate of approximately 6.9%, making her loan relatively inexpensive [4]. - By using her windfall to pay down her mortgage, Julia would effectively earn a 3.5% return on that money, but investing it could yield a long-term average stock-market return of around 7% annually, potentially building more wealth over time [5]. Group 2: Retirement Readiness - Fidelity recommends that individuals save roughly three times their salary by age 40 and four times their salary by age 45, highlighting the importance of retirement savings [6].