re: Should I pay off my debt?

Wait, why are we concerned about short term losses in the market?

The OP has an emergency fund, no? If not, that takes priority over both investment and accelerated debt repay.

So short term is covered.

So why are we making medium and long term choices based on the risk assessment lens of the short term.

What I absolutely hate is the reasoning of people who hate all debt and consider it inherently a burden rather than a tool.

If he was paying ~5% interest on the car I would have agreed with you. But he isn't. He is paying a low rate below historical inflation averages. If people wish to offer you cheap money....USE IT.

You do realize he would achieve a higher return (albeit a small one) than prepaying the loan even investing as conservatively as an high quality intermediate term bond? Even with anticipated rate hikes?

Never mind putting it in the S&P500.

And assuming the loan is over 3 years left in length....how often does the market "whip your arse" over that time frame.

And if anything, the short term aspect is an argument against not for.

At least pre paying a house you are looking at a return over 15+ years. Once the loan end, the return does. Returns on securities continue as long as you hold them.

I'm not saying don't prepay the loan. The psychological aspects of increasing cash flow and being debt free does have a value.

How much is up to you.

I'm just saying to not to forget the mathematical side and consider opportunity costs on putting money to pay off a low interest loan faster so you can get a clear title on a depreciating asset compared to owning appreciating assets.