Subject: Re: ot: advice for my nephew
Having cash gives you freedom to do things

Sounds good to me. I would give the same advice even if the interest being earned, after tax, was a bit less than the interest being paid...for a while, anyway.

Amazing opportunities to deploy cash come around pretty regularly, even if the timing is unpredictable. I would be in no great hurry to deploy the cash. A very small rate of loss on interest differential, for a while, is a reasonable price to pay in order to maintain the power to pounce. This requires some fortitude and patience, but not that much. It is not at all hard, in the average year, to invest at an after tax rate of return considerably higher than a nominal 4%.

As I understand it, that mortgage rate could not be duplicated now in the US, and perhaps not for a long time.

Jim