Hi all,
I’m looking for opinions about what to do with surplus cash.
Some key points:
-I have 75,000 jpy in surplus cash every month.
-I have an emergency fund that covers six months essential expenses.
-I’m three years into the 35 year mortgage and payments are about 92,000 a month.
-I’m married and in my late thirties.
-I haven’t talked to my wife about this yet in much detail, but I could request that she contribute at least and additional 30,000.
I’m considering paying off the mortgage with the surplus.
My reasoning is that I’m concerned about fluctuations in any stock I would buy through NISA, iDECO, or other reasonable investments. I’m expecting that any investments would be subject to potential job disruption due to advancements in technology, but would not want to invest in any technology bubbles that might be currently be pumped up by AI hype.
Reducing my mortgage is somewhat guaranteed “return”, although it’s more like I feel this is best way I can put my money to use and be comfortable with my decision.
I haven’t done any calculations, but paying off the principal would shave at least 18 years off my mortgage. After that, if I’m still employed, healthy, alive, etc., I’ll allocate the increased surplus to some other investment.
Does anyone have any thoughts on this?
Is the opportunity cost not worth it?
Would a NISA be a good option for my wife’s contribution?
Thanks for your opinions.
by linkrot404