Posted by Mike on February 02, 2002 at 10:26:57:
You make some good points.
It really comes down to goals. Some people want to have a free and clear house - some people want tax write offs and cash flow. Different strokes - for different folks. You are also assuming a person would be discipline enough to actually use the excess cash constructively - which most do not.
I wouldnt say 10-12% is a “modest” investment return. The highest perfroming asset class is stocks which in the last 50 years have an average return of around 12 1/2%. The stock market action from 1995 to early 2000 made a lot of people forget that 12% is a good return (although many have learned since then).