Does this make sense

[keHlani_wun]

So someone aiming for FIRE has bonds, a mortgage, and a HELOC with a rate that's probably higher than what their bonds are earning. Makes sense to use some of the bond money to kill off that HELOC, right? As long as they keep enough cash around for emergencies, it sounds like a smart move to me.

 

[Elf_Rubi02]

I've done exactly that during my FIRE journey. HELOCs usually float higher than bond yields, so swapping low-return assets for guaranteed interest savings is a win. Just keep enough liquidity for emergencies... you don't want to be forced into new debt if something pops up.

 

[Maryb3th]

So someone aiming for FIRE has bonds, a mortgage, and a HELOC with a rate that's probably higher than what their bonds are earning. Makes sense to use some of the bond money to kill off that HELOC, right? As long as they keep enough cash around for emergencies, it sounds like a smart move to me.

paying off the HELOC first usually makes sense if the rate is higher than the bond yield, keep a solid cash buffer so you’re not stuck if something unexpected comes up

 

[dollore$]

I agree with @Maryb3th keep a healthy cash buffer so you’re not forced to borrow again if something unexpected hits