If Google Is Issuing $36 Billion in Debt… Why Are You So Focused on Paying Off Your Mortgage?
By Brian Aberle, CFP®
When most people think about debt, they think about eliminating it. When companies think about debt, they think about optimizing it. Recently, Google announced a $36 billion bond issuance to help finance capital expenditures — primarily around data centers and AI infrastructure. The move comes as the company aggressively invests in artificial intelligence capabilities and global computing capacity.
Here’s what makes it interesting: Google is not cash-strapped.
They are flush with cash, with a war chest of over $126 billion as of the end of 2025. That is huge amount.
And yet — they chose to issue debt.
Reportedly, part of the issuance even included ultra-long maturities (including 100-year bonds, which are rare and typically only issued in very favorable borrowing environments).
That raises a useful question: If one of the most cash-rich companies in the world chooses to borrow instead of pay cash… what does that tell us? And more importantly:
What does that mean for you and your mortgage?
Step Into the Mind of a CFO
Imagine you’re the CFO of Google.
You’re sitting on tens of billions in cash. You have strong cash flow. You have access to extremely favorable borrowing rates because of your credit profile.
You need to build data centers to compete in AI. These projects are expected to generate returns for decades.
You have two options:
1. Use cash.
2. Issue long-term debt at relatively low interest rates.
Why borrow?
Because capital has an opportunity cost.
If Google can borrow at, say, 4–5% over an extremely long period of time — and they expect their investments in AI infrastructure to generate returns meaningfully higher than that — it makes mathematical sense to preserve cash and use leverage strategically.
Debt is not automatically bad.
It’s a tool.
The question is whether it’s productive or destructive.
Now Shift the Lens to Your Mortgage
When individuals talk about mortgages, the discussion usually sounds different.
“I just want it gone.”
“I hate having debt.”
“I’ll feel free once it’s paid off.”
Those feelings are valid.
But they are emotional.
The financial question is different: What is the cost of your mortgage relative to what your capital could earn elsewhere?
If your mortgage rate is:
- 3%
- 4%
- Even 5%
And long-term diversified investment returns are reasonably expected to exceed that over time, then mathematically, accelerating payoff is not automatically the optimal strategy.
That doesn’t mean you shouldn’t pay it off.
It means you should analyze it.
The Three Real Questions
If you want to think like a CFO, ask:
1. What is my borrowing cost?
What is the actual interest rate? Fixed or adjustable? Tax-deductible or not?
2. What is my alternative return?
If you deploy extra capital elsewhere — retirement accounts, brokerage, business investment — what is the expected long-term return?
3. What is my liquidity position?
Google didn’t issue debt because they had to.
They issued it to preserve flexibility.
Liquidity provides optionality.
Optionality has value.
When individuals aggressively pay off mortgages, they convert liquid capital into home equity — which is far less flexible.
Home equity is real wealth.
But it’s not easily deployable without friction.
When Paying Off a Mortgage Makes Sense
Let’s be clear — sometimes it absolutely does.
Paying off a mortgage may be appropriate when:
• Your rate is high relative to expected investment returns.
• You are approaching retirement and prioritizing income stability.
• You are debt-averse to the point that carrying it meaningfully impacts your quality of life.
• You lack investment discipline and would otherwise spend the difference.
Finance is math.
But behavior matters.
Peace of mind has value.
The Hidden Risk of “Debt-Free” Thinking
The risk isn’t paying off your house.
The risk is assuming all debt is bad and all leverage is reckless.
The largest companies in the world use long-term debt strategically, especially when:
• Rates are favorable
• Capital markets are open
• Investment opportunities are compelling
• Their balance sheet is strong
They are trying to optimize capital allocation.
The Bigger Question
If Google, with enormous cash reserves, chooses to borrow for long-term growth…
Are you making your mortgage decisions from a place of strategy — or from a place of emotion?
There’s no universal right answer.
But there is a disciplined process.
And that process starts by asking:
• What is this debt costing me?
• What could this capital earn?
• What flexibility am I giving up?
• What level of risk aligns with my life stage?
Final Thoughts
Most personal finance advice oversimplifies.
“Pay off all debt.”
“Invest everything.”
“Always refinance.”
“Never refinance.”
Reality is more nuanced.
The goal isn’t to copy Google.
It’s to think like a capital allocator.
Debt can be dangerous.
But used properly, it can also be strategic.
And sometimes, the smartest financial move isn’t eliminating debt — it’s understanding it.
Aberle Investment Management LLC is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk, and unless otherwise stated, are not guaranteed. Be sure to consult with a qualified financial advisor or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future returns.