Have a 7 year arm mortgage and my IRA has about the same balance…how to hedge?
I have a 7 year arm mortgage at 6.5% with $500,000 balance. I also have a traditional IRA sitting around $500,000. It’s mostly in SPAXX getting around 3.80% and going down. So how should I position my traditional IRA so that if the long end of the curve goes up and keeps going up the next several years, the IRA would be doing great.
For example, at some point I would have to refinance to a 30 year fixed. But in that environment (stagflation), the mortgage rate would be much higher. I want to position my IRA so that if the long end of the curve pops, my IRA would be going great to offset some of the pain from the much higher mortgage. Im not planning to use the IRA to pay for mortgage. It’s just a mental thing…like if one thing goes bad, at least the other thing is going great so that not all is going to shit.