Having just bought our first home, I've been reading all the threads in the payoff mortgage vs investing debate. I've come to the conclusion that the best thing for our situation is to use a taxable account to send all extra "mortgage payments" and have it grow until it exceeds the mortgage balance. At that point I can assess whether to payoff the mortgage or keep it. My plan includes slightly more than a double payment each month to be sent to this account.
My question is, where would you invest it? My knee jerk points me toward VTI. But is there a better risk/reward fund out there, given the purpose? TD Ameritrade commission free ETFs are preferred here, but if it's offered commission free somewhere else, I'd happily open a new account.
If it matters, our mortgage rate is 3.875% on a 30 year. I would like to park these funds somewhere that beats that on a historical basis, for obvious reasons. I kinda hope that there's some magical tax advantaged bond fund that pays a stable 4%, because I'd happily just send it there and forget about it.
(If it comes up: Yes, 401(k) and Roths are being taken care of with this plan.)