If you pay 4% net to borrow (includes mortgage deduction) you can make 8-9% tax free. The mortgage payment is simple interest and the IUL growth is compounded.
But hey, keep all that equity inside the walls of the house. When values go down you lose. Natural disaster, you lose. Unemployed and want a loan, not qualified.
Put some money into a tax free IUL and be your own bank. No non-preferred debt. Pay cash whenever for whatever.
Oh, did I mention the death benefit.
Equity squirrels. Have fun and keep fooling yourselves.
Or I could pay off the house, then invest the monthly house payment (say $650/month since your example was $100k loan) for ten years.
10 years down the road, I’ve owned my home for a decade with little/no risk and I’ve got $100k built up in the investment.
Fooling myself? I’ll take that deal any day.
I may be missing something, but if the $100k you invested had only doubled after 10 years, that would be a 7.2% rate of return. How does that net 8-9%?