[dropcap]W[/dropcap]hile it’s tough to advocate for the use of leverage to buy more stocks, the question of how aggressively to pay down a mortgage, or simply how to think about your primary residence and mortgage as part of your overall investment portfolio is critical. For example, you shouldn’t own low paying bonds if you are stuck in a high rate mortgage. And with rates so low, you also probably shouldn’t have a tiny stock portfolio in exchange for gaining a lot of equity in your home. The bottom line is unless you have enough money that you never have to worry about running out, it is critical to have an intelligent asset allocation based on your overall net worth – not just your liquid net worth.
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