Core Insights - The couple faces a decision between paying off their $483,000 mortgage at a 6.5% interest rate or investing the cash elsewhere [1][2] Group 1: Case for Paying Off the Mortgage - The mortgage interest rate of 6.5% is considered high compared to current market rates, with the average 30-year fixed rate dipping below 6.25% recently [2] - Paying off the mortgage provides a guaranteed return equivalent to the interest rate, which is difficult to achieve without market risk [2] - Emotional benefits include peace of mind from being debt-free and the elimination of a $3,600 monthly mortgage payment, allowing for increased cash flow for savings or investments [5] Group 2: Case for Holding onto Cash - Keeping the cash provides flexibility, as once the money is used to pay off the mortgage, it becomes illiquid [2] - Current savings yield approximately $1,000 per month, with high-yield accounts and short-term Treasury bills offering around 4%, which is not sufficient to outpace the mortgage interest after taxes [3] - Long-term investments like the S&P 500 have historically provided average annual returns of about 10%, but investing carries volatility and risks, especially with current market highs [4] Group 3: Risk Considerations - Paying off the mortgage reduces financial risk, particularly in scenarios where one spouse may lose a job or face increased expenses, as it eliminates a significant fixed cost [5]