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I myself am betting on 1970’s-caliber inflation and interest rates. I’d hang on to the CD for now and re-invest it in a couple of years at 10 or 12 percent, then when that matures reinvest it at 18 or 20 percent.

it ain't going to happen. have you seen what interest rates are at? next to zero. we are living in a time of negative return. inflation is far higher than the 5bp annualized return on a savings account. money market funds, non bank, are 11 to 20 bp annualized. that means for every 100 bucks you invest in a money market you get between 11 and 20 cents a year. and lets not talk about the returns of the stock and bond markets lately. most have lost half of their investment with no guarantee of future returns.

pay off the mortgage if you have the money, especially if you can no longer write off the interest. if you have a 5.375% mortgage, you would have to have investments that yield over 7% if it is not tax sheltered (ira, 401k). And given the volatility of the stock and bond market, the peace of mind is worth more than the 2.5% to 3% historical return above what you might save. i say “might” because there is no guarantee.