One of my favorite sayings is that personal finance is far more personal than it is finance. For years, one of the core tenets of our financial planning has been encouraging clients to pay off their mortgages when possible. This may sound counterintuitive. The prevailing wisdom of the last decade was to instead invest that money. Low-interest rates drove the narrative that more money could be made by placing extra mortgage payments in the stock market.
For us, that means we give more weight to the personal side of personal finance. Questions like, “Will I have enough?” or “Will I be OK?” get at deeper feelings of security, trust, and well-being. Generating a return that’s one or two percentage points higher does little to answer these questions or reassure someone that they’re on a good path forward.
Next, imagine you just visited your doctor, and they tell you that you have 5-10 years to live. You will not feel sick or have any “notice” of your death. What will you do with the time you have remaining? Would you change anything in your life today, and if so, how will you do it?