If I have an extra $1000 a month, is it better to pay down my mortgage or invest in index funds?
My home loan is at 6.5%, but paying an extra thousand a month will cut about 15 years off of my loan. However, I also realize I stand to gain a lot of compound interest investing that $ 1000 every month by just putting it into an index fund. The thing that has me wondering is if I pay down my home loan that much quicker, than I have that much more to invest from that point on.
Which is perceived to be the smarter plan and why?