10yrs experience Financial Advisor and CERTIFIED FINANCIAL PLANNER here. Many, many things to consider before taking a ton of liquid cash that has been earning a spilled rate of return and paying off an illiquid asset like a house that you will now have to pay to get money out of (home equity loan).
As said earlier, why not have your cake and eat it too? And index fund is all the risk of the market. You could be more conservative and move some so cash, some to a balanced account or similar, average over a 7% rate of return (for the last 30 years), keep your money growing greater than the rate of your loan, and stay liquid.
Real estate goes up and down, as stated earlier, you can’t get your money out quickly (illiquid), you have to pay to onetime it without selling your house, and that’s a process.
Normally, I’m talking people down that are significantly older than yourself, and also have significantly more assets. Mathematically, it’s not a smart move, generally.
Great gob on saving that money and investing it properly. You know the rule of 72? Take whatever your avg earnings are, divide by 72, and that’s how long till your money doubles. So, if you earned 6% a year (significantly more conservative than you are now), you would have 500k in 12yr, and than a million in 24 years, without ever adding another dollar. Why on earth would you ever wanna start over with people willing to loan real estate funds at all time lows?
Everyone’s situation is different and if you want to have a deeper convo feel free to shoot me a DM
Congrats! It’s a great conundrum to be in.
Sent from my iPhone using Tapatalk