Ask HN: What’s Your Net Worth?
Age 40. 2 Million with 400K mortgage.
Assets - Liabilities = Net Worth
Own house ($50,000 [sic]) no mortgage
0 debt
1k savings account
$50,000 in 401k
$40,000 in index funds
Was a math teacher until 3 years ago - now web developer & data scientist
2. S/he won’t be paying early payment penalty.
That's a huge assumption. There is implicit risk in debt: you might not be able to make payments due to you losing income in the future. If your income is gone, your investments might not be worth as much either, so those might not cover your debts.
There's also peace of mind. There's a psychological effect of having and paying debt.
Around here, all the doctors have big houses and nothing else. As soon as they pay off the house, they upgrade. The goal is to have the primary residence be the only significant asset. It's the one thing that can't be seized to satisfy a normal lawsuit judgement.
Don't forget that the 2 million net worth includes some of the house, and you can't pay off the house with the house and still keep it. ($2.4 million house - $400k mortgage = $2 million net)
Got 7 lambos.
Net worth: ~1.5M USD, all invested in index funds
Happy renter, no mortgage