1. It doesn’t make sense to invest in bonds that have an interest rate lower than your mortgage. At a mortgage rate of 3.75, I doubt youre finding any bonds to put cash. Would go 100percent stocks until bond rate increase s.

    • I am not looking higher paying bonds than my mortgage. My money is split 60/40 which offers me an average annual return of 7%. Additionally, while my mortgage is 3.75%, after taking into account the tax write off I get, the effective rate I am paying is closer to 2.8%. I feel confident that my plan will work out in the end.

  2. I think you’re missing the point. Every dollar you put into a bond at a rate lower than your mortgage is earning less than it could by paying down your mortgage. Instead of putting the 40% cash into bonds, you’d be better off taking that cash and paying down your principle then the remainder in stocks.