Iam 53 my wife is 51 we paid our house off 2 months ago,my attitude has changed at work and in my life. I don't stress work anymore. We have a emergency fund and now looking to invest. My wife's job was very toxic we felt no reason to stay because we live within our means! WE DONT HAVE DEBT! We didn't do it the way Dave said but maintained the principals and still paid it of 4 years early. Thank you Dave and crue!!!!
Two things: Yes, you "consider" it, and how do you like living in CA or NY, with more than 50% of your net worth tied up in an absurdly over-priced home? In places where people are not mortgage-rich and penny-poor, you can become a millionaire with 80 to 90 percent of your wealth being liquid, such that you enjoy life a great deal more.
I owe $250k with a 2.75% rate- in no rush to pay it off. not stressed about it at all. have maybe $650k in equity, I may write a check and pay it off when I retire. maybe not. I'm sure the lender would love to no longer be holding my note with today's rates. plus they make sure tax and insurance are paid. an extra fee I'm glad to pay.
@@ashdobbs It takes me about 3 seconds to pay my taxes and insurance. I would rather keep those extra hundreds or thousands of $$'s than to pay my lender to do 3 seconds of work.
The "peace of mind" argument is valid, but completely subjective. If having peace of mind means having less debt, then go ahead and pay off your mortgage. No one can really argue otherwise. However, if peace of mind means having your money in liquid investments rather than home equity, then keep your mortgage. No one can argue with that either. Either way, if you are in a position where you can choose to pay off the mortgage, you're in a good financial spot. You can't go wrong either way. I've run dozens of calculations for my own situation and both methods come out pretty close. Now remember, when you run your numbers, it's not a simple $100k invested vs. $100k mortgage paydown. You need to add your mortgage payment to the investments once the mortgage is paid off. Too many people forget to do this and end up with vastly different results
yeah i bet the vast majority of people and even Dave Ramsey viewers just have lifestyle inflation with the extra money they have after paying off a mortgage.
Just to clarify on your point, if you have $120k invested and $100k mortgage balance, you don't get to count the $20k towards the spread. Alternatively, if you payed off the mortgage, the payments that you used to have would now add to the $20k, but not the $100k you had set aside for spread math. So bottom line, if your spread adds to the $20k faster than your mortgage payment could (not counting property taxes & insurance) then keep the mortgage. If not, then pay the mortgage. If Ramsey was actually a math nerd, this is what he should've been explaining and then he might've actually convinced some people. Instead, he tries to make $400 a month sound like nothing and blabbers on about surveys and "feelings"
Maybe not likely but if your investments tank or your bank goes under, that money is gone and you still owe on your mortgage. If you pay off your house with your investment liquidity, even if home values plummet (which would only be temporary) the house still has value as a place to live and you dont have to make a payment in case you lose your income. In terms of investment and return its arguable, in terms of human beings that need a place to live and get sick, lose jobs, make mustakes etc, its always better to own a home in full.
I was in a similar situation with a low interest rate and had the money to pay it off but it was making me more money. My wife really wanted to pay it off so we did. It was the correct decision. Even though we had the money just knowing we don’t have a mortgage was worth more than any interest difference.
I did exactly the same thing as you. Best thing that I ever did. Aside from the absence of the monthly burden of mortgage repayments, it has ultimately been very rewarding in a financial context.
At 7:23- "Mortgage means "Death Pledge" in French". I'd never heard that before. Painfully, darkly, ironic for me that the loss of my beloved wife 7 years ago and the subsequent life insurance payout from her policy to me was what enabled me to do the early pay-off of the mortgage on our home. I'd give ANYTHING to still have both the mortgage AND her!
my condolences for your loss. to me, life insurance benefits are, at a minimum, the value of a mortgage. this was my idea, as a kid when nice homes were 150k. its still stands true, just get the spouse to split the diff with higher priced mortgages. I say this in response to your spouse passing, due to thats my plan to build property wealth for my family. essentially I'm gonna buy out my moms home. and use her Life insurance to pay for my kids (her grandkids) home. they can then take a small 100k cash out refi as a down payment, while they manage their grandmothers home which will be a rental. Its my silver lining, of me being a trust fund kid and preserving family wealth. the only thing I gotta do is only have 2 kids, so that my home is equity for one child and the rental property is equity for the other child. they can rinse and repeat this each generation. so that only 2 properties are managed. (1 primary resid to one child, 1 rental property to other child). the life insurance pays off the mortgage for one, and the renter pays off the other. JUST DONT EXPECT A RENTER TO PAY IN FULL. idk, its still a work in process in my mind.
We have been on a recession since the beginning of 2022, but big media and governments all over the world didn’t want to admit it. We need to be wise and use our brains. Knowledge is power and I’d like all the family to be powerful! Just purchased some *Dale Valskov* Thanks for keeping us informed during this times of doubt?
Congratulations, *Dale Valskov* I am relieved that you are out there fighting these thugs, We musttake every precaution to protect the elderly and the general public from these despicable con artists. Congratulations to You!! You deserve the Nobel Peace Prize for ensuring our security.
Like Dave has been saying for a long time, paying off a mortgage is beyond just the math. Right now I have 17 yrs left on my mortgage, but ran doable numbers to get it paid off in 7 yrs. When my SUV is paid off in under 2yrs, then that money will go further towards the mortgage, probably making it gone in 4 yrs. I'm on the cusp of $1M in IRA / 401k savings, so i'm not hurting there and will continue to max it out every year. Getting rid of that mortgage is my number one priority! It's called piece of mind, less stress and personal security!
We are in a similar boat. I feel like as soon as our house is paid off, we could pursue something else or retire early, but would never consider retirement with a mortgage to pay. That being said, we always make sure to get the 401k match and max out my HSA and mine and my wife's Roth IRAs, which is right at 15% of our income. Fortunately, we can take a modest vacation and still have some leftover after that. The remainder could go on the house or in a taxed investment account. Both paths get us to zero debt and our desired net worth. On paper, investing gets us to that point about 8 months sooner, but we feel paying off the house gets us peace of mind and better options knowing we could step away at any time.
@@matthewsheahan9435I'm just wondering if I should try to find a tiny home with no mortgage, or slightly better home with a payment of $600 - 1000 a month.
I paid off my house with a severance payment I received. So I was unemployed, but getting unemployment, and living off that as well as savings for a period of time. A job offer came thru, with a cut in salary. As I didn't have any debt, I didn't have a problem accepting the job. The salary was more than enough that I needed to maintain my lifestyle at that time. That was 11 years ago. Still working for this company, and have gotten substantial pay raises. Your mind set does change substantially when you don't have debt.
My heart goes to the entire community for *Dale Valskov* building up something even my grandpa can understand. This is so smart by them to launch it to shatter the doubts and fears of the common folk which is not even correct to begin with. Everyone knows the state of inflation and recession now and the way out is already in progress. Now it's just about catching the big fish
I paid off my mortgage when i was 40 years of age. I am 53 working 8 days a month. Able to do whatever i want when i want and pay all my bills. Zero stress!
I did not believe that after the whole FTX drama there's any good to get this year but *Dale Valskov* proved otherwise. Bad timing maybe but it's a great adoption to get this more to the mainstream and raise awareness. Probably a high contender for a top 100 growth
*Dale Valskov* has the most potential to do more than X10. ETH and BTC will most likely do a X5-X6, but that's fine for me. Gotta look for better entry points while I stake IRIS and PGEN, then wait for Polygen's next raise as I also look at their new partnership with Kenzo Ventures
I’m 26 and paid off my 92000 mortgage in 13 months. It’s the best decision I’ve made. I have no mortgage anxiety and the flexibility now to chase my dreams. Thank you Dave for changing my life!
@@johndone8045this real person’s actual life does not reflect reality? Why? Because you don’t like it or because somehow you’re able to discern the realities of others?
I started following Dave Ramsay channel a couple of months ago and I must say I even had a real life-threatening stress and finantial situation last year,... I decided I wanted to change and eventually found this channel and got myself a actual plan, and started working 50-60... 90% more and sacrificing all the way to get out of debt. I'm not out yet, but I expect to be in less than 1.5 years worst case scenario. Specially, by thinking on how to do it faster I got into a different state of mind and created a better situation for myself in order to do it. Once I do this, I'll try to reach out to the team just to personally thank you for being my final inspiration that made me do this. I'll never get any single debt again, no matter the amount... EVER.
Just like his credit card surveys, ask millionaire if they build their wealth because they use credit card, the answer is no, but if you ask them if they use credit card, that’s complete different story Should have asked those millionaire if they build their wealth because they paid off their mortgage early, and let’s see the answer
If you have a 2% interest rate mortgage, there is no way in heck your freed up mortgage payments would be more than the money you're making from investing an amount equal to the mortgage balance. I might as well pay off my mortgage and light money on fire every month for amusement, makes just as much sense as Dave's "advice"
As a millionaire who did pay off their low interest mortgage early, I can confirm that it was the right decision and it frees up SO MUCH MORE of your income to dial up on investment. Don't just speculate. Listen to people who've actually done it, my friend.
Can't deny the fact that *Dale Valskov* is the strongest bet to bring power back to this industry after we suffered FTX, Celsius, Tera and so on. Sure if they fail it's done for good, but I don't see that the biggest tech company in the world would put everything at risk just for that.
On this call $400 a month is considered not worth spit and $5,000 a year is not going to make a difference. On other calls we are praising people if they can just save $400 a month and put it into a magic mutual fund then it’s going to be worth twenty gazillion dollars in the future.
The guidance varies with the caller's situation. For someone younger, saving $400 a month over a relatively long time can lead to wealth; it may also be all that is feasible at the time. This caller has strong income, is age 63 and could experience psychological freedom by paying off the mortgage. Paying it off also frees up the monthly payment for investing.
The biggest problem with this "analysis" is that Dave is ignoring the future compounding over the next 12 years of the money this caller is pulling out of his investments to pay off his mortgage.
At 63 saving 400 a month isn’t going to do at lot. No time to grow. At 25 paying off your debt will do everything. It isn’t about the money it is about the logic and what happens after you have no payment. You can change jobs open a business you have freedom.
There's little to no stress with a 92k mortgage at 2% making 140k a year. I'm blessed to have a paid for home and it's wonderful, but I think Dave over exagerates the feeling of freedom it creates. Freedom is a state of mind. Working on it myself! I could go either way with this caller.
I'm literally overwhelmed, You are a blessing to the world. I can't thank you enough *Dale Valskov* for helping me with my account recovery. My prayers will always be with you and your team. Keep it up guys. Love from Maldives. There are many people out there I pray everybody get help.
I don't disagree with dave, however it seems strange to take such an opposite stance on $400 a month. If this was a car payment dave would say it's detrimental, however he tells this guy that $400 is "not significant"...
You said it, brother. His program does not allow for exceptions, and exceptions are everywhere. Notice that Ramsey REALLY DIDN'T tell him to pay it off, because that would have been bad financial advice, but he sure implied it to those who aren't listening that closely.
That’s because a $400 car payment is a money suck and is eating away at most Americans finances. Is 400 really worth keeping a 30 year mortgage even if you are 60yrs old? Just pay it off, avoid the risk and find another place to grow your money
Why would you not want to be a millionaire? I understand the part about living debt-free. Regardless of how much total wealth you have. In 2024, $1 million isn’t even that much money.
A friend did that very same thing, but in early 2020 just before the pandemic hit. He said it was a total blessing because his income took a big hit with the pandemic for months, but he no longer had that mortgage and no worries about being foreclosed on. Great job to you!
This is the same $400 a month they are saying is insignificant that if it was $500 they’d say invest that much a month for 30 years and it’s ~$5M. Makes no sense
Kind of makes sense because when projecting into the future, you'd want to estimate lower returns to factor in unknown risk. However, my rate is 5.5% and I'm not paying my house off because even if my investment returns just match 5.5%, over time, the amount of interest paid on the mortgage lowers, while the amount made on the investment interest increases. So, the payout verses the income diverge through time. Hopefully, there just isn't some massive economic catastrophe. To this point in time, the investment advisors I use has averaged over 12% per year over the last 25 years after fees are factored.
@@sweetiespoon5150 they make $140k per year and sounds like they can afford the mortgage. However if they want to stop working, then cutting an expense like the mortgage is worth it to me.
Paying off the mortgage makes sense if you are older and looking at estate planning. I am sure your heirs would rather receive a paid off house than a house with a mortgage attached to it. Somebody has to keep that house running through the probate period (about a year). This is much easier to do if they are not paying a mortgage.
2 weeks ago I paid off my house, Today is the first month I don't have to pay anything for a mortgage. I am 39, I was a college drop out, I was laid off more times then I can count, but I never gave up. I'm not rich, but hopefully this is the beginning to when I can just retire and not work so hard anymore because I'm not going to lie I am tired.
The honest answer should be "for people intelligent with money, yes it makes way more sense to not pay off the mortgage and benefit from the extra $400 a month". $400 a month is not a small amount especially if it is invested. It means that the next car will be free and change will be left over.
I just ran an interest calculator: if you invest $400 a month at Dave’s magic 12% interest rate, assuming 3% inflation, after 20 yrs you have $367,942.94! That’s not small potatoes! If I run the same calculator to invest $400 a month at a more reasonable 8% interest rate, assuming 3% inflation, after 20 yrs you have $229,064.01. Which is also not an insignificant sum.
In this model, you or your significant other could also lose a job and have trouble paying your mortgage. Family member could get sick etc. these models don’t factor in risk. Are you also factoring in inflation and the rise of cost of living across the country? A point the people fail to realize is that the math is always wrong against Dave when trying to decide. To pay off a 3% mortgage or not. The thing that he’s right on is that you just are able to strategize differently when you are debt free and not have to ask Biden and the govt for handouts
Started my own side hustle in 2001. I barely qualified for a 15 yr mortgage in 2011 due to child support. Refinanced 2012 at 2.87%. Paid it off in June 2020 during covid hysteria. Was fired 4 months later for opposition to covid hysteria. Side hustle is now full time and living the best life I ever thought possible. My wife and now own 4 homes between us, 3 by default. We never intended to be property owners and only have a very small mortgage on 1 of them.
For me paying off my mortgage early gave me piece of mind. I did not have to worry about a payment getting lost (yes even with electronic payments I had a few get lost by the bank - They found it eventually but until then I would have risked late fees) If I lost my job I did not have to worry about the payments. So on an so forth. My biggest plan was for my mortgage to be paid off BEFORE I retired. As is happened it was paid off 5 years before retiring. Put all of that into my 401k and savings.
I'm 40 living in California, and have 5 yrs 4 months to pay off, at 3.25% int, payments are $1,160 on a 15yr loan and adding $500/mo to principal. I cannot tell you how excitied I will be to own a house in my 40's and be debt free. Pay off your debts ASAP is the best advice i can give anyone. Eat ramon noodles if you have to
We've paid off a mortgage before and I'm not doing it again right now. We've got an under 3% mortgage that is paid entirety with my VA disability each month because we bought smart. The difference that we invest or save is substantial with today's inflation and our family of 7. Enough to allow us to go on a camping vacation every year.
The problem is t that he can’t get along it is that his advice is bad and he can’t do math. Not sure any other host would have told the 86 year old to go to work lol.
The reasoning is that if you get hurt with a mortgage you lose your house and the investment you put into it. He has 12 years left to be at risk. If you get hurt without a mortgage you pay the taxes out of your retirement. Take it from someone who is going blind at 34.
Definitely not taking Dave's advice on this one. My "spread" is about $150/month shy of paying my mortgage anyways, and the amount I have invested on top of the spread almost covers the remainder of my monthly bills. If my kids were out of daycare, I literally wouldn't have to worry about losing my job
400 bucks can definitely make a substantial difference in one's wealth. 400 bucks a month at a 10% rate of return (12% made in mutual funds minus 2% mortgage) is 1,000,000 in 30 years. I'd sleep better knowing math is on my side, but I'm a logical thinker. For emotional people, it's not the worst advice. Just shows personal finance is personal, and Dave's Cookie Cutter advice does not fit every person and every situation, no matter how hard he tries to sell you on it being the best.
@@xander6051 he said household, so I’m assuming more than one income. So let’s divide that $140k by 2, that’s only $70k a piece at 63. Yall think that’s good?
@reese85 Pretty sure that's right round median income lol. Also he said 'household' and later clarified it's because he gets a pension as well. You're weird bro.
@chaosAOE don’t matter if it’s the median income or not and I don’t think thats the median income for that age group and regardless he if gets a pension or not. It’s still his income and there would be no need to say household vs my income “assuming” it’s more than one person and I’m weird for saying $140k at 63 is kinda low? Again maybe my standards are too high or y’all’s are too low 🤷🏽♂️
The one thing I noticed is that once I paid off my mortgage psychologically it became,e much more comfortable with putting maximum in my 401k and my Roth and my HSA. Probably could have done this anyway but was much less concerned about that money not showing up on my paycheck without a mortgage payment every month.
Where does the 7pct come from when a diversified mutual fundportfolio generates 12plus return per Dave. If you use those numbers it's 10k, that pretty good.
We paid more on our house as often as we could, and we paid it off even earlier with a bunch of cash. The feeling is awesome!! Plus, we have a good retirement and we're investing like crazy!!
Dave is right. Not everyone can be a Robert Kiyaosaki or a Jespreet from Minority Mindset. It takes a certain personality and discipline to take advantage of the better math. And the average person doesnt have the psychological disipline to take advantage of the better math. But if you do, more power to you. Thats a great talent.
I’m for making the money and keeping the 2% mortgage. My only reservation is not leaving mortgage debt to my wife if I die. I want to make it simple for her.
Take that mortgage payment, plug it in a retirement calculator for 15, 20 years at 9% return. Fast forward, your biggest concern will be, golf , tennis or drinks by the pool. Or all 3!
I have to agree with Dave on this one. Even before I heard of Dave Ramsey, I always felt that making monthly payments to a bank for whatever reason was not a good thing. My mortgage interest rate is %3, my mortgage payment is less than $400 a month, and I see this as an opportunity to make extra payments and own my house outright.
So I have 500k morgage at 2% interest and 500k sitting in my bank earning 5% interest. Why does withdrawing the 500k to kill the morgage makes you more stress free? Are you scared the bank will run away with your money? Or is 2 accounts too many for ant brains to process? 😅
You are exactly correct. And you would have sacrified the compounded value of the interest that your investment would have earned over those years as well.
Same!!! We have, technically, 2 1/2 years left (based on balance...original pay-off was Oct., 2031 on a 15 year), but hoping to finish in a year or less!!
Love Dave and follow him very closely but what he misses to mention here is its $5,000 compounded over the next 12 years. The key word is "COMPOUNDED". Sure the first year is $5,000. Guess what that figure is after 12 years.... The 7% earned in the market would be over $130,000. so technically about $11,000/year if you want to look at it that way. I get what Dave is saying. I personally agree a paid off house is priceless but lets call a spade a spade. The compounding effect investing that $100,000 is substantially more than $5,000.
His advice is usually great advice for the people that call in. They are usually backed into corners because they cannot understand or operate on more complex principles. This caller is intelligent and in a great place. I think he CAN operate on a higher level and should do so. Sacrificing his investments to pay off his mortgage is a mistake
I'm going blind completely at 34 to the point that my phone reads and writes for me. I reacted to a medication 4 years ago in one day I went from working to disabled and not capable of filing the paperwork for it. I own my home or I would have been screwed. It takes a single day or a single eye drop to hurt you.
The guy is 63 it is crazy to talk about compounding. He need to play this thing off and figure out life. Til tok strike again where you thin compounding is more important then a paid off home even at 63.
It actually does make a lot of sense to clear it as quickly as possible, both emotionally and mathematically. Compounding interest, even on a decreasing principal works in the lenders favour. The sooner you clear the mortgage, the sooner that you can focus on investments. And the sooner you clear the mortgage, the sooner YOU own the home that you live in.
@@davidbrayshaw3529 Mathematically you lose money if you prioritize paying off 3% debt with money making 8 - 12% compound so you're wrong, but good try bro!
It’s funny, extremes when it’s in the favor of the principals and extremes when not in the favor. “12% b/c mutual funds make that” “7% b/c you have a 2% mortgage” Dude. 98K, yes 400$ a month ain’t a lot. But exactly. It’s not a lot. Just keep the damn the mortgage, if you get fired, rmeber what Dave says “go get you a job that pays you 2x that in the next year”. 😂😂😂
We want to pay off our mortgage early before retirement. Another 2 years to go to payoff $98,000! We will be saving $36,000 in interest overall. I can't wait to drop this stupid flood insurance!
But you also argue the “concept” that you you can earn 12% on your investments average, therefore you can safely withdraw 8% annually in retirement. People DON’t average 12%, and 8% is hardly likely to negatively impact your retirement over 30 years. It’s NOT sustainable.
Its easy you make less money for a little while lol so dont be greedy and the only reason to do it is in case you no longer have income you dont have to worry about a mortagage..no one is guaranteed money it can stop for any reason...
What's never really mentioned is that the interest is all front-loaded in the first 10 years you've pretty much paid almost all the interest on a 30-year loan
17 วันที่ผ่านมา +1
true but he is still paying interest, not near as much but he's still paying it
@4:10 very strong takeaway. Zero debt gives you more power and respect when dealing with other people since you are not dependent on them. It also gives you more confidence by strengthening your emotional armor enough to stabilize your relationships with yourself and others. That means no anxiety going to bed or in the middle of the night. Who wouldn’t want to live like that?
Every crash/collapse brings with it an equivalent market chance if you are early informed and equipped, I've seen folks amass up to $1m amid economy crisis, and even pull it off easily in favorable conditions. Unequivocally, the collapse is getting somebody somewhere rich
Alice Devion has really set the standard for others to follow, we love her here in Canada because she has been really helpful and changed lots of life's
Dave's not wrong, however this guy is the exception. W/ S&P over 5k, investing in stocks properly (nvda, tsla, etc) doesn't make sense for this guy to pay off mtg just to save 2%
True but obviously when you create a program and have a talk show that people listen to, you need to speak to those who are the TYPICAL person. And Dave is not going to sit there and tell this guy something that fundamentally goes against his program that has worked for so many. And I am OK with that! I gave you a thumbs up because I can tell you are NOT a troll. My comment / clarification is for those that comment negatively to every one of Dave's videos!!
It does make sense. Go to a well off party of net worth 1-10 million. 90% paid off homes. The type of person you guys are talking about is a small portion of very rich that go broke every time anything happens. 100m+ net worth use assets to make money but the reality is for 95% of Americans they make money on a home and a index fund.
Make sense isn’t it feels and sounds right to me. Make sense is we looked at the actions of the people that had the outcomes you want and this is what works. If it doesn’t make sense to you that doesn’t matter. lol.
Yes. Remember to do what rich people do. Because that's how you get rich. Even though their lives are completely different than yours. I mean... at under 3%, almost every rich person I know has a mortgage or three...
@@t185bear "Remember to do what rich people do." Except having and using a credit card (or three). Don't do that. In fact we don't even know if they do that because apparently this large comprehensive study of 10000 millionaires didn't have this question on there.
Jay, here is another risk-related reason to take your mutual fund money and pay off your mortgage: the P/E ratio on the S&P500 is 28.8; the dividend yield on the S&P500 is 1.3%; and, the Shiller P/E on the S&P500 is 36.1. These are all _extreme_ values, indicating overpriced stocks and a coming decline in the markets. If you knew now that your mutual funds would be worth 20%--35% less two years from now, would you use them to pay off your mortgage now?
What does it matter what the market does in two years when it goes up in the long term? If you're no planning on selling your market related assets anytime soon, your reasoning here doesn't matter
The S&P isn't the only thing to invest in. Money market funds have been returning 5% for over a year now, and they are about as low risk as you get. You can buy literal 10 year treasuries (instead of a fund) that do the same thing, and they will not go down in value if you carry them to term. Though if retirement accounts are fully funded for this year and the next few years, and there is still money left over like this guy has, I would pay down my mortgage as well. Income tax reduction first, then cheap debt.
@@lepoj Good points and a good question! Let me add a couple of comments. 1. Studies show that these financial ratios forecast long-term stock market performance. So, it was my mistake to not mention beyond the two- or three-year horizon. 2. The caller's mortgage has only a 12-year horizon. So, he should be thinking about money over that 12 years, in addition to thinking longer term. In the near term, if he has mutual fund money that he thinks is going to make 10% or 12% or 15%, etc., then he needs to consider the risk that it won't. Conditional upon the multiple I quoted, that current risk is very high.
@@blanketwodahs6741 Very good points. If you think about money market versus paying of the mortgage, then the spread he is capturing is even smaller. Maybe only 3% per year, if he is lucky.
It is true, being debt free is the most freeing feeling than you can imagine. You have another option besides taking it out of your investments. You can make huge principal payments each month and pay it off in a couple of years, putting everything towards that payment. You still keep your investment but put future funds instead toward paying off the mortgage. The other option is to go ahead and pay it off and then you have your mortgage payments to quickly pay back the money you used to pay it off and then continue investing even more than you ever did before.
It all depends on your level of commitment and what your financial plan is honestly making 5k extra a year compounding for the 12 years is a decent amount. I am in the same situations today; I have a 2.5% rate with about 15 years left... over the past 3 years I was going to put everything into the home to get the balance down, and I am glad I did not... over the past three years I have made 72% in my portfolio. 😲 To each their own and one size does not fit all financial plans.
I think Dave is wrong on this one. He can easily beat 2% by investing. He should invest it. Dave is making an emotional argument, and not a mathematical one.
I owe over $400k on my mortgage wt 2.625% interest. I have 3 kids going to college in the next several years. It would probably take me at least 15 years to pay it off early and i would have not nearly enough to contribute to their college. I need to invest now. Tell me im wrong on this.
You are not wrong. I am in teh same boat with two kids in college. I built a decent seven figure net worth while carrying mortgages, and I still have one at 2.85. not worried about it in the least. What I make every year in investment returns and income tax savings puts me so far ahead of the mortgage interest, it is actually troubling to me that so many people miss out on this whole "life arbitrage" that can make so much more money vs fixating on being debt free.
This year my investment returns alone could pay off my entire mortgage, and the year is only half over. Or .. I could have only made a few percent on my mortgage by paying it down. No thanks...
This is a great video I really appreciate the dedication in each video you post, I learn a lot watching your videos and it has always been helpful to me. Building a steady income is quite difficult for newbies.. Thanks to *Dale Valskov* for improving my portfolio. keep up with the good videos.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@lennoxmutterick6434 However, if you do not have access to a professional like CLEMENTINA ABATE RUSSO, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
He does answer directly. You don’t like the truth and the answer so ignore it. You can also check. Go ask your well off friend and family if the have mortgages. Everyone pays those off in the 40s to prepare for buying more homes. Go get a job somewhere so you can see. Debt people can make 400k and be broke.
@@joesmith3590 haha I don't like his answer, it is not the truth. Maybe existing millionaires houses are mostly payed off but they did not have 2% rates for the large majority of their loan. Rates that low are new
People who say $400 a month is spit, can I have $400 a month? Having the cash sit in a safe account earning 5% when you mortgage is 2% have no risk. You can pay it off any time. The argument to take a loan today to invest is moot, you cant get a 2% loan, and when mortgages were 2% you couldn't get 5% CDs or bonds. I prefer to have the options that cash has over just storing value in wood and concrete and dirt.
Great insight, thank you. I'm hedging the payments by paying a few k extra off the Morgage each month and also investing a few k per month and targeting much larger returns than the % on the Morgage. But because I spent the first 4 years furiously paying the Morgage down with every spare cent I had. Its's now only going to take me 7 years to complete the home loan and be debt free.
I expect that "being able to pay off my mortgage at any time" and "not having a mortgage anymore" give very similar feelings. So investing that money, knowing you could just pay off the mortgage, is probably better. I have a buddy who cashed in his savings and paid off the last $60,000 on his house (2.5% 15 year mortgage). And six months later he needed a bunch of home repairs ($20k worth) and had to scramble for the cash.
📌 TA is all well and good but I find it truly baffling that all major stocks you tubers just look at pure TA and completely Ignore the bigger narrative of why stock Is pumping and why the future outlook might not be as rosy as it seems. Alot has changed and that's about it, but the truth is that I don't even care much about the bull or bear market anymore because *Dale Valskov* covered me while I'm doing comfortable. 2.3 BTC per month
I’m 41 and paid off my mortgage by selling my home in an expensive real estate market, and moving to the sun belt and buying my home outright. I now put 60 percent of my income into my retirement account and a small percentage into my taxable investment account as well. I totally agree with the sentiment in this video, with no mortgage you live with a lot less stress.
We paid off our mortgage before finding out about Dave's show. I agree that paying off mortgages gives us peace of mind. It wasn't an easy thing to do but we wouldn't trade peace over anything else.
Just paid off our Mortgage on July 1!
Congratulations. We plan on paying ours off by April 2025.
Congrats!
👏👏👏
Have a wegmans chocolate cake. We did
Paid mine off last June, 9years early!
Iam 53 my wife is 51 we paid our house off 2 months ago,my attitude has changed at work and in my life. I don't stress work anymore. We have a emergency fund and now looking to invest. My wife's job was very toxic we felt no reason to stay because we live within our means! WE DONT HAVE DEBT! We didn't do it the way Dave said but maintained the principals and still paid it of 4 years early. Thank you Dave and crue!!!!
You are looking to invest at 53? Wow, good luck.
Well done. Great feeling, isn't it.
Weak mind, work stress should not related to your mortgage
My parent bought multiple homes after 53 not sure why that seems odd to you.
Congratulations. We are planning on having our mortgage paid by April 2025. 30yr paid in 18. I can already see light at the end of the tunnel.
Exactly, being debt free sets free the mind to think in different way.
I'm a multi-millionaire and I didn't get there by NOT considering $400 per month and all the other monthly income and expenses.
Exactly. You become a millionaire by optimizing. By taking advantage of things like $400 a month in additional income.
I agree. You have to at least consider it.
Two things: Yes, you "consider" it, and how do you like living in CA or NY, with more than 50% of your net worth tied up in an absurdly over-priced home? In places where people are not mortgage-rich and penny-poor, you can become a millionaire with 80 to 90 percent of your wealth being liquid, such that you enjoy life a great deal more.
80k left on my 4.5% mortgage and I cannot wait to be done
You've got this , it will be done in no time.
@@elchavinha14 Don't rush it. Invest more.
I owe $250k with a 2.75% rate- in no rush to pay it off. not stressed about it at all. have maybe $650k in equity, I may write a check and pay it off when I retire. maybe not. I'm sure the lender would love to no longer be holding my note with today's rates. plus they make sure tax and insurance are paid. an extra fee I'm glad to pay.
Same!
@@ashdobbs It takes me about 3 seconds to pay my taxes and insurance. I would rather keep those extra hundreds or thousands of $$'s than to pay my lender to do 3 seconds of work.
The "peace of mind" argument is valid, but completely subjective. If having peace of mind means having less debt, then go ahead and pay off your mortgage. No one can really argue otherwise. However, if peace of mind means having your money in liquid investments rather than home equity, then keep your mortgage. No one can argue with that either.
Either way, if you are in a position where you can choose to pay off the mortgage, you're in a good financial spot. You can't go wrong either way. I've run dozens of calculations for my own situation and both methods come out pretty close.
Now remember, when you run your numbers, it's not a simple $100k invested vs. $100k mortgage paydown. You need to add your mortgage payment to the investments once the mortgage is paid off. Too many people forget to do this and end up with vastly different results
yeah i bet the vast majority of people and even Dave Ramsey viewers just have lifestyle inflation with the extra money they have after paying off a mortgage.
Thanks for exploring both sides of the coin… I like what you said about what gives you peace of mind and how it’s different for different people
Just to clarify on your point, if you have $120k invested and $100k mortgage balance, you don't get to count the $20k towards the spread. Alternatively, if you payed off the mortgage, the payments that you used to have would now add to the $20k, but not the $100k you had set aside for spread math. So bottom line, if your spread adds to the $20k faster than your mortgage payment could (not counting property taxes & insurance) then keep the mortgage. If not, then pay the mortgage. If Ramsey was actually a math nerd, this is what he should've been explaining and then he might've actually convinced some people. Instead, he tries to make $400 a month sound like nothing and blabbers on about surveys and "feelings"
Maybe not likely but if your investments tank or your bank goes under, that money is gone and you still owe on your mortgage. If you pay off your house with your investment liquidity, even if home values plummet (which would only be temporary) the house still has value as a place to live and you dont have to make a payment in case you lose your income. In terms of investment and return its arguable, in terms of human beings that need a place to live and get sick, lose jobs, make mustakes etc, its always better to own a home in full.
@@CarguyloganBut if you invest wisely you’ll have liquidity for any job loss situation.
I was in a similar situation with a low interest rate and had the money to pay it off but it was making me more money. My wife really wanted to pay it off so we did. It was the correct decision. Even though we had the money just knowing we don’t have a mortgage was worth more than any interest difference.
I did exactly the same thing as you. Best thing that I ever did. Aside from the absence of the monthly burden of mortgage repayments, it has ultimately been very rewarding in a financial context.
Sorry but SERIOUSLY your mind is weak
@@davidbrayshaw3529 Curious, have you checked to verify how much more money you'd have today if you invested and then paid off your home?
What are your property taxes? Dave keeps spewing this trash, thinking it applies to everyone.
Having the ability to pay it off and have that grow feels way better than paying it off and losing that momentum.
At 7:23- "Mortgage means "Death Pledge" in French". I'd never heard that before. Painfully, darkly, ironic for me that the loss of my beloved wife 7 years ago and the subsequent life insurance payout from her policy to me was what enabled me to do the early pay-off of the mortgage on our home. I'd give ANYTHING to still have both the mortgage AND her!
my condolences for your loss.
to me, life insurance benefits are, at a minimum, the value of a mortgage.
this was my idea, as a kid when nice homes were 150k. its still stands true, just get the spouse to split the diff with higher priced mortgages.
I say this in response to your spouse passing, due to thats my plan to build property wealth for my family.
essentially I'm gonna buy out my moms home. and use her Life insurance to pay for my kids (her grandkids) home. they can then take a small 100k cash out refi as a down payment, while they manage their grandmothers home which will be a rental.
Its my silver lining, of me being a trust fund kid and preserving family wealth.
the only thing I gotta do is only have 2 kids, so that my home is equity for one child and the rental property is equity for the other child. they can rinse and repeat this each generation. so that only 2 properties are managed. (1 primary resid to one child, 1 rental property to other child). the life insurance pays off the mortgage for one, and the renter pays off the other. JUST DONT EXPECT A RENTER TO PAY IN FULL.
idk, its still a work in process in my mind.
bots
One of my biggest fears, losing her to pay off the mortgage. The only one that won is the lender, and they won't send a card for condolences!!
It doesn't mean that lol
We have been on a recession since the beginning of 2022, but big media and governments all over the world didn’t want to admit it. We need to be wise and use our brains. Knowledge is power and I’d like all the family to be powerful! Just purchased some *Dale Valskov* Thanks for keeping us informed during this times of doubt?
wtf?
@@SilentSputnik bots
You were not in a recession. Numbers don`t lie...
Congratulations, *Dale Valskov* I am relieved that you are out there fighting these thugs, We musttake every precaution to protect the elderly and the general public from these despicable con artists. Congratulations to You!! You deserve the Nobel Peace Prize for ensuring our security.
????????????
@@SilentSputnik bots
Yeah I've used Dale also. I gave him a penny and he turned it into $100M. It's been great!
Heroin is amazing, no?
Not going to lie I watch every one of these mortgage payoff videos. I'm doing it... but the reminders help me get back to my why.
Like Dave has been saying for a long time, paying off a mortgage is beyond just the math. Right now I have 17 yrs left on my mortgage, but ran doable numbers to get it paid off in 7 yrs. When my SUV is paid off in under 2yrs, then that money will go further towards the mortgage, probably making it gone in 4 yrs. I'm on the cusp of $1M in IRA / 401k savings, so i'm not hurting there and will continue to max it out every year. Getting rid of that mortgage is my number one priority! It's called piece of mind, less stress and personal security!
Heck yea!!
We are in a similar boat. I feel like as soon as our house is paid off, we could pursue something else or retire early, but would never consider retirement with a mortgage to pay. That being said, we always make sure to get the 401k match and max out my HSA and mine and my wife's Roth IRAs, which is right at 15% of our income. Fortunately, we can take a modest vacation and still have some leftover after that. The remainder could go on the house or in a taxed investment account. Both paths get us to zero debt and our desired net worth. On paper, investing gets us to that point about 8 months sooner, but we feel paying off the house gets us peace of mind and better options knowing we could step away at any time.
@@matthewsheahan9435I'm just wondering if I should try to find a tiny home with no mortgage, or slightly better home with a payment of $600 - 1000 a month.
I paid off my house with a severance payment I received. So I was unemployed, but getting unemployment, and living off that as well as savings for a period of time. A job offer came thru, with a cut in salary. As I didn't have any debt, I didn't have a problem accepting the job. The salary was more than enough that I needed to maintain my lifestyle at that time. That was 11 years ago. Still working for this company, and have gotten substantial pay raises. Your mind set does change substantially when you don't have debt.
My heart goes to the entire community for *Dale Valskov* building up something even my grandpa can understand. This is so smart by them to launch it to shatter the doubts and fears of the common folk which is not even correct to begin with. Everyone knows the state of inflation and recession now and the way out is already in progress. Now it's just about catching the big fish
wtf?
bots
These fucking bots
I paid off my mortgage when i was 40 years of age. I am 53 working 8 days a month. Able to do whatever i want when i want and pay all my bills. Zero stress!
I did not believe that after the whole FTX drama there's any good to get this year but *Dale Valskov* proved otherwise. Bad timing maybe but it's a great adoption to get this more to the mainstream and raise awareness. Probably a high contender for a top 100 growth
Yeah I've used Dale also. I gave him a penny and he turned it into $100M. It's been great!
*Dale Valskov* has the most potential to do more than X10. ETH and BTC will most likely do a X5-X6, but that's fine for me. Gotta look for better entry points while I stake IRIS and PGEN, then wait for Polygen's next raise as I also look at their new partnership with Kenzo Ventures
Yeah I've used Dale also. I gave him a penny and he turned it into $100M. It's been great!
It's amazing what you do *Dale Valskov* We need a lot of people with your skills and set who have good intentions and spread love
haha
Yeah I've used Dale also. I gave him a penny and he turned it into $100M. It's been great!
We paid our primary mortgage off in January 2020 and paid beach house mortgage off in April 2022, $600k total. We ain’t regretted it, not once.
You can always get a mortgage, but when you live debt free and understand how that feels, you don’t go back. Love it!
Congrats, you lost out on about $200k
The freedom of no debt is priceless.
@@siva47931 how’s that?
Lol these people with sub 1m net worth splurging 200k on "freedom" while dissing people splurging 100k on cars 😂 pure comedy
I’m 26 and paid off my 92000 mortgage in 13 months. It’s the best decision I’ve made. I have no mortgage anxiety and the flexibility now to chase my dreams. Thank you Dave for changing my life!
Wow! Congratulations!
Oh well, how many 26 makes over 120k annual? Your example does not reflect reality
92k would buy you a nice porta-potty in my metro area.
@@johndone8045this real person’s actual life does not reflect reality? Why? Because you don’t like it or because somehow you’re able to discern the realities of others?
@@johndone8045who said he was making that much?
Pay off the mortgage and the equity goes up - as well as your mood.
I started following Dave Ramsay channel a couple of months ago and I must say I even had a real life-threatening stress and finantial situation last year,... I decided I wanted to change and eventually found this channel and got myself a actual plan, and started working 50-60... 90% more and sacrificing all the way to get out of debt. I'm not out yet, but I expect to be in less than 1.5 years worst case scenario. Specially, by thinking on how to do it faster I got into a different state of mind and created a better situation for myself in order to do it. Once I do this, I'll try to reach out to the team just to personally thank you for being my final inspiration that made me do this. I'll never get any single debt again, no matter the amount... EVER.
I paid my house off first quarter 2021. I cant tell you how much better I feel now. Nothing hangs over my family anymore, besides taxes.
Just like his credit card surveys, ask millionaire if they build their wealth because they use credit card, the answer is no, but if you ask them if they use credit card, that’s complete different story
Should have asked those millionaire if they build their wealth because they paid off their mortgage early, and let’s see the answer
Yup, that “argument” really irritates me haha. I get the point he’s trying to make, but he could make it in a much better way
If you have a 2% interest rate mortgage, there is no way in heck your freed up mortgage payments would be more than the money you're making from investing an amount equal to the mortgage balance. I might as well pay off my mortgage and light money on fire every month for amusement, makes just as much sense as Dave's "advice"
@@Thurgor_SupremeI prefer to actually own my home, because if you don't, the bank can take it from you at any time they wish.
@@BG-bx4ey Any time they wish? LOL, not at all. Especially if you're current on your payments
As a millionaire who did pay off their low interest mortgage early, I can confirm that it was the right decision and it frees up SO MUCH MORE of your income to dial up on investment. Don't just speculate. Listen to people who've actually done it, my friend.
Can't deny the fact that *Dale Valskov* is the strongest bet to bring power back to this industry after we suffered FTX, Celsius, Tera and so on. Sure if they fail it's done for good, but I don't see that the biggest tech company in the world would put everything at risk just for that.
On this call $400 a month is considered not worth spit and $5,000 a year is not going to make a difference. On other calls we are praising people if they can just save $400 a month and put it into a magic mutual fund then it’s going to be worth twenty gazillion dollars in the future.
YEP. Double standard.
The guidance varies with the caller's situation. For someone younger, saving $400 a month over a relatively long time can lead to wealth; it may also be all that is feasible at the time. This caller has strong income, is age 63 and could experience psychological freedom by paying off the mortgage. Paying it off also frees up the monthly payment for investing.
The biggest problem with this "analysis" is that Dave is ignoring the future compounding over the next 12 years of the money this caller is pulling out of his investments to pay off his mortgage.
At 63 saving 400 a month isn’t going to do at lot. No time to grow. At 25 paying off your debt will do everything. It isn’t about the money it is about the logic and what happens after you have no payment. You can change jobs open a business you have freedom.
The caller is 63.
There's little to no stress with a 92k mortgage at 2% making 140k a year. I'm blessed to have a paid for home and it's wonderful, but I think Dave over exagerates the feeling of freedom it creates. Freedom is a state of mind. Working on it myself! I could go either way with this caller.
If you are 63 and your home isn’t paid for I disagree you should be stressing. 2% is a fine rate for a young man. At 63?
I'm literally overwhelmed, You are a blessing to the world. I can't thank you enough *Dale Valskov* for helping me with my account recovery. My prayers will always be with you and your team. Keep it up guys. Love from Maldives. There are many people out there I pray everybody get help.
I don't disagree with dave, however it seems strange to take such an opposite stance on $400 a month. If this was a car payment dave would say it's detrimental, however he tells this guy that $400 is "not significant"...
You said it, brother. His program does not allow for exceptions, and exceptions are everywhere. Notice that Ramsey REALLY DIDN'T tell him to pay it off, because that would have been bad financial advice, but he sure implied it to those who aren't listening that closely.
because he's a simpleton
"Don't almost max out your Roth IRA for free." Dave is such a joke.
That’s because a $400 car payment is a money suck and is eating away at most Americans finances.
Is 400 really worth keeping a 30 year mortgage even if you are 60yrs old? Just pay it off, avoid the risk and find another place to grow your money
The point is that a home is an appreciating asset, while a car is not.
A home is also not as likely to fall apart either.
I don’t want to be a Millionaire. I just want to live a life DEBT FREE.
Thousandaire here, and I agree!
$100K/yr pension >>millionaire status
For me
Why would you not want to be a millionaire? I understand the part about living debt-free. Regardless of how much total wealth you have. In 2024, $1 million isn’t even that much money.
Lots of broke people without debt though.
@@ojg386 homeless people are in the same boat
Yes it does. We paid ours off in June of 2020 retired early and debt free.
A friend did that very same thing, but in early 2020 just before the pandemic hit. He said it was a total blessing because his income took a big hit with the pandemic for months, but he no longer had that mortgage and no worries about being foreclosed on. Great job to you!
Freedom.
@@vjr5261 If only you had invested in the S&P what you paid your house off with...
This is the same $400 a month they are saying is insignificant that if it was $500 they’d say invest that much a month for 30 years and it’s ~$5M. Makes no sense
VERY good point ! 👍🏼
Dave suddenly wants to use 7% rate of return and not 12% to answer this question. Things that make you go “hmmm”.
Comment i was going to make if i didnt see it first! 😂
Why would you want to be paying on a mortgage until you're 75 if you could pay it off sooner?
Kind of makes sense because when projecting into the future, you'd want to estimate lower returns to factor in unknown risk. However, my rate is 5.5% and I'm not paying my house off because even if my investment returns just match 5.5%, over time, the amount of interest paid on the mortgage lowers, while the amount made on the investment interest increases. So, the payout verses the income diverge through time. Hopefully, there just isn't some massive economic catastrophe. To this point in time, the investment advisors I use has averaged over 12% per year over the last 25 years after fees are factored.
@@sweetiespoon5150The opportunity cost of paying off a low interest mortgage can easily amount to hundreds of thousands of dollars. That’s why.
@@sweetiespoon5150 they make $140k per year and sounds like they can afford the mortgage. However if they want to stop working, then cutting an expense like the mortgage is worth it to me.
Paying off the mortgage makes sense if you are older and looking at estate planning. I am sure your heirs would rather receive a paid off house than a house with a mortgage attached to it. Somebody has to keep that house running through the probate period (about a year). This is much easier to do if they are not paying a mortgage.
2 weeks ago I paid off my house, Today is the first month I don't have to pay anything for a mortgage. I am 39, I was a college drop out, I was laid off more times then I can count, but I never gave up. I'm not rich, but hopefully this is the beginning to when I can just retire and not work so hard anymore because I'm not going to lie I am tired.
The honest answer should be "for people intelligent with money, yes it makes way more sense to not pay off the mortgage and benefit from the extra $400 a month". $400 a month is not a small amount especially if it is invested. It means that the next car will be free and change will be left over.
I just ran an interest calculator: if you invest $400 a month at Dave’s magic 12% interest rate, assuming 3% inflation, after 20 yrs you have $367,942.94! That’s not small potatoes!
If I run the same calculator to invest $400 a month at a more reasonable 8% interest rate, assuming 3% inflation, after 20 yrs you have $229,064.01. Which is also not an insignificant sum.
Yeah but $400 a month is not life changing😝That's a lot of pizza money
11.4% annual over 25 years
A little unfair
I went to cash in 2007
And into foreclosed real estate 2010
Very good point.
@@danaconda12 Maybe for Dave! LOL The rest of us would love to have a spare $400 a month. Thats the entire grocery budget for some people.
In this model, you or your significant other could also lose a job and have trouble paying your mortgage. Family member could get sick etc. these models don’t factor in risk. Are you also factoring in inflation and the rise of cost of living across the country? A point the people fail to realize is that the math is always wrong against Dave when trying to decide. To pay off a 3% mortgage or not. The thing that he’s right on is that you just are able to strategize differently when you are debt free and not have to ask Biden and the govt for handouts
$400 is not a lot of money but have yourself a garage sale to make $50 to pay off debt ... yeah ok
Started my own side hustle in 2001. I barely qualified for a 15 yr mortgage in 2011 due to child support. Refinanced 2012 at 2.87%. Paid it off in June 2020 during covid hysteria. Was fired 4 months later for opposition to covid hysteria. Side hustle is now full time and living the best life I ever thought possible. My wife and now own 4 homes between us, 3 by default. We never intended to be property owners and only have a very small mortgage on 1 of them.
I was never really good at math in school..but as an adult not having any payments on stuff feels really good!!
For me paying off my mortgage early gave me piece of mind. I did not have to worry about a payment getting lost (yes even with electronic payments I had a few get lost by the bank - They found it eventually but until then I would have risked late fees) If I lost my job I did not have to worry about the payments. So on an so forth.
My biggest plan was for my mortgage to be paid off BEFORE I retired. As is happened it was paid off 5 years before retiring. Put all of that into my 401k and savings.
but if you take that $400 a month and keep it invested it will end up being way more in the long run.
If that was true no one would have an issue buying homes.
I'm 40 living in California, and have 5 yrs 4 months to pay off, at 3.25% int, payments are $1,160 on a 15yr loan and adding $500/mo to principal. I cannot tell you how excitied I will be to own a house in my 40's and be debt free. Pay off your debts ASAP is the best advice i can give anyone. Eat ramon noodles if you have to
We've paid off a mortgage before and I'm not doing it again right now. We've got an under 3% mortgage that is paid entirety with my VA disability each month because we bought smart. The difference that we invest or save is substantial with today's inflation and our family of 7. Enough to allow us to go on a camping vacation every year.
Dave just lets George sit there and nod…like a boss.
They really need to let George go.
@@ziggywalsh5562who is Oscar?
The problem is t that he can’t get along it is that his advice is bad and he can’t do math. Not sure any other host would have told the 86 year old to go to work lol.
The reasoning is that if you get hurt with a mortgage you lose your house and the investment you put into it. He has 12 years left to be at risk. If you get hurt without a mortgage you pay the taxes out of your retirement. Take it from someone who is going blind at 34.
Definitely not taking Dave's advice on this one. My "spread" is about $150/month shy of paying my mortgage anyways, and the amount I have invested on top of the spread almost covers the remainder of my monthly bills. If my kids were out of daycare, I literally wouldn't have to worry about losing my job
I’m 💯 debt free
Thanks to Dave
Love listening to him it keeps me from getting stupid again
400 bucks can definitely make a substantial difference in one's wealth. 400 bucks a month at a 10% rate of return (12% made in mutual funds minus 2% mortgage) is 1,000,000 in 30 years. I'd sleep better knowing math is on my side, but I'm a logical thinker. For emotional people, it's not the worst advice. Just shows personal finance is personal, and Dave's Cookie Cutter advice does not fit every person and every situation, no matter how hard he tries to sell you on it being the best.
Except car loan advice. Never do that
Very true !
Is he still working? He's making 140k a year?? Not bad at 63.
$140k household income at 63 is not bad? Maybe my standards are too high
@@reese85 What would you say is a normal household income at 63?
@@xander6051 he said household, so I’m assuming more than one income. So let’s divide that $140k by 2, that’s only $70k a piece at 63. Yall think that’s good?
@reese85 Pretty sure that's right round median income lol. Also he said 'household' and later clarified it's because he gets a pension as well. You're weird bro.
@chaosAOE don’t matter if it’s the median income or not and I don’t think thats the median income for that age group and regardless he if gets a pension or not. It’s still his income and there would be no need to say household vs my income “assuming” it’s more than one person and I’m weird for saying $140k at 63 is kinda low? Again maybe my standards are too high or y’all’s are too low 🤷🏽♂️
What is the monthly payment on the 2% loan? How would you otherwise use that money every month? Shouldn't that go into the calculation?
The one thing I noticed is that once I paid off my mortgage psychologically it became,e much more comfortable with putting maximum in my 401k and my Roth and my HSA. Probably could have done this anyway but was much less concerned about that money not showing up on my paycheck without a mortgage payment every month.
Where does the 7pct come from when a diversified mutual fundportfolio generates 12plus return per Dave. If you use those numbers it's 10k, that pretty good.
We paid more on our house as often as we could, and we paid it off even earlier with a bunch of cash. The feeling is awesome!! Plus, we have a good retirement and we're investing like crazy!!
@@jimroscovius is your daughter doing the same thing now?
How old were you, when you paid it off?
I wish after you paid off your mortgage you didn't have to pay property taxes.
If the gubberment eliminated property taxes, they would raise some other tax. They’ll get money from you somehow.
@@doubles1545 EXAAAACTLY. You don't really own your house 100% SMMFH.
Would you then hire your own police and fire departments and build your own roads and infrastructure?
@@doubles1545"they" aren't trying to get you. Police departments, fire departments, infrastructure, etc. all cost money.
@@superblump87 Good point. Guess we have no choice but to keep paying, even though ll probably never use their service. Good to know its there guess.
Dave is right. Not everyone can be a Robert Kiyaosaki or a Jespreet from Minority Mindset. It takes a certain personality and discipline to take advantage of the better math. And the average person doesnt have the psychological disipline to take advantage of the better math.
But if you do, more power to you. Thats a great talent.
I sleep better at night. The grass feels spongier. lol.
I’m for making the money and keeping the 2% mortgage. My only reservation is not leaving mortgage debt to my wife if I die. I want to make it simple for her.
Life insurance or pay the mortgage in a lump sum with invested funds once you retire
Take that mortgage payment, plug it in a retirement calculator for 15, 20 years at 9% return. Fast forward, your biggest concern will be, golf , tennis or drinks by the pool. Or all 3!
I don't understand how people don't get this. I just don't.
@@davidbrayshaw3529 Math baby! Same way casinos dupe millions!
I have to agree with Dave on this one. Even before I heard of Dave Ramsey, I always felt that making monthly payments to a bank for whatever reason was not a good thing. My mortgage interest rate is %3, my mortgage payment is less than $400 a month, and I see this as an opportunity to make extra payments and own my house outright.
So I have 500k morgage at 2% interest and 500k sitting in my bank earning 5% interest. Why does withdrawing the 500k to kill the morgage makes you more stress free? Are you scared the bank will run away with your money? Or is 2 accounts too many for ant brains to process? 😅
And I would fell more stressed for emptying my account.
A paid off house means jack if you get fired and have no money coming in.
@@jimmymcgill6778So true
You are exactly correct. And you would have sacrified the compounded value of the interest that your investment would have earned over those years as well.
Everyone with a paid off home disagrees.
I'd sell that stupid house, invest the payment along with your 500K cash at 6% interest and have over $2,000,000 in 15 years.
2% loan? Hell no! Don’t pay that off. Invest in the market
I cannot wait until we pay off our 2.8% mortgage! Very close!!
Same!!! We have, technically, 2 1/2 years left (based on balance...original pay-off was Oct., 2031 on a 15 year), but hoping to finish in a year or less!!
Paid mine off in April. Don’t regret it for a second
I cant wait to watch my 200k in the bank make me an extra $10k a year
Me too! One more year !!! 👍🏼 Paying off 10 year note in 5 !!!
Love Dave and follow him very closely but what he misses to mention here is its $5,000 compounded over the next 12 years. The key word is "COMPOUNDED". Sure the first year is $5,000. Guess what that figure is after 12 years.... The 7% earned in the market would be over $130,000. so technically about $11,000/year if you want to look at it that way. I get what Dave is saying. I personally agree a paid off house is priceless but lets call a spade a spade. The compounding effect investing that $100,000 is substantially more than $5,000.
His advice is usually great advice for the people that call in. They are usually backed into corners because they cannot understand or operate on more complex principles. This caller is intelligent and in a great place. I think he CAN operate on a higher level and should do so. Sacrificing his investments to pay off his mortgage is a mistake
I'm going blind completely at 34 to the point that my phone reads and writes for me. I reacted to a medication 4 years ago in one day I went from working to disabled and not capable of filing the paperwork for it. I own my home or I would have been screwed. It takes a single day or a single eye drop to hurt you.
@@rayf6126 The guy's investment won't vanish if he becomes disabled. He will still have the option to pay off at ANY time
The guy is 63 it is crazy to talk about compounding. He need to play this thing off and figure out life. Til tok strike again where you thin compounding is more important then a paid off home even at 63.
The market could tank and he has nothing also. lol young people.
I have a 3% mortgage with 25 years left. I will not make extra payments to the mortgage it doesn’t make sense.
I guess you'll just keep making the banks happy giving your money away to interest if that's your decision!!!
It actually does make a lot of sense to clear it as quickly as possible, both emotionally and mathematically. Compounding interest, even on a decreasing principal works in the lenders favour. The sooner you clear the mortgage, the sooner that you can focus on investments. And the sooner you clear the mortgage, the sooner YOU own the home that you live in.
Do you really invest your money saved by not paying extra on your mortgage? Or do you just spend it?
I guess you'll be making the banks more rich throwing extra money towards interest!!
@@davidbrayshaw3529 Mathematically you lose money if you prioritize paying off 3% debt with money making 8 - 12% compound so you're wrong, but good try bro!
At 2%, the lender is slave to the borrower.
Ha, very true. They lost money on reselling those loans
Except when the bank calls the mortgage, because they messed up.
@@patignaczak That never happens on a 30 year fixed.
@@dylanbarrett599 you are not supposed to be on a 30 yr -- only 15 or less.
At 2%, there are no slaves at all.
It’s funny, extremes when it’s in the favor of the principals and extremes when not in the favor.
“12% b/c mutual funds make that”
“7% b/c you have a 2% mortgage”
Dude. 98K, yes 400$ a month ain’t a lot. But exactly. It’s not a lot. Just keep the damn the mortgage, if you get fired, rmeber what Dave says “go get you a job that pays you 2x that in the next year”. 😂😂😂
Millionaires have paid off houses. Paying off the house did not make them a millionaire. Correlation is not causation.
Who the hell spends $400 per month on pizzas, consistently?!? 🍕
We want to pay off our mortgage early before retirement. Another 2 years to go to payoff $98,000!
We will be saving $36,000 in interest overall.
I can't wait to drop this stupid flood insurance!
Houston?
Paying off your home no more makes you wealthy than owning a private jet makes you a billionaire.
It does though because wealth is spiritual. You can never have enough when you are greedy.
What? That makes no sense. Of course paying off your home makes you more wealthy. It raises your equity, which counts toward your net worth.
But you also argue the “concept” that you you can earn 12% on your investments average, therefore you can safely withdraw 8% annually in retirement. People DON’t average 12%, and 8% is hardly likely to negatively impact your retirement over 30 years. It’s NOT sustainable.
Its easy you make less money for a little while lol so dont be greedy and the only reason to do it is in case you no longer have income you dont have to worry about a mortagage..no one is guaranteed money it can stop for any reason...
Dave calls $400 'nothing' but still insists that you can buy a car for $1000 this guy could buy and flip 4 or 5 cars a year living in Dave's world.
Depends where u live and if u can fix stuff
What's never really mentioned is that the interest is all front-loaded in the first 10 years you've pretty much paid almost all the interest on a 30-year loan
true but he is still paying interest, not near as much but he's still paying it
@4:10 very strong takeaway.
Zero debt gives you more power and respect when dealing with other people since you are not dependent on them.
It also gives you more confidence by strengthening your emotional armor enough to stabilize your relationships with yourself and others.
That means no anxiety going to bed or in the middle of the night.
Who wouldn’t want to live like that?
We paid off our Mortgage this month as well. Praise God!
Thanks for keeping us buds got a 150K mortgage, bought 75k worth of Brett with it. YOLO from profit of 10k capital..?
Hello, how do you make such amount? I'm a born
christian but sometimes I feel so down of myself because of low finance but I still believe in God.
Every crash/collapse brings with it an equivalent market chance if you are early informed and equipped, I've seen folks amass up to $1m amid economy crisis, and even pull it off easily in favorable conditions. Unequivocally, the collapse is getting somebody somewhere rich
Wow, you guys are discussing about the same thing in my mind what a coincidence. Hahaha .I bought couple of crypto like Shiba Inu, BNB,XRP & ADA.
Sincerely speaking. I will continue to trade and stick to expert Al ice daily signals and guides as long as it works well for me...
Alice Devion has really set the standard for others to follow, we love her here in Canada because she has been really helpful and changed lots of life's
Dave's not wrong, however this guy is the exception. W/ S&P over 5k, investing in stocks properly (nvda, tsla, etc) doesn't make sense for this guy to pay off mtg just to save 2%
True but obviously when you create a program and have a talk show that people listen to, you need to speak to those who are the TYPICAL person. And Dave is not going to sit there and tell this guy something that fundamentally goes against his program that has worked for so many. And I am OK with that!
I gave you a thumbs up because I can tell you are NOT a troll. My comment / clarification is for those that comment negatively to every one of Dave's videos!!
If you're bad at saving money and feel you have to spend whatevers in your bank account, sure pay off your house. But otherwise this makes no sense.
It does make sense. Go to a well off party of net worth 1-10 million. 90% paid off homes. The type of person you guys are talking about is a small portion of very rich that go broke every time anything happens. 100m+ net worth use assets to make money but the reality is for 95% of Americans they make money on a home and a index fund.
Make sense isn’t it feels and sounds right to me. Make sense is we looked at the actions of the people that had the outcomes you want and this is what works. If it doesn’t make sense to you that doesn’t matter. lol.
It doesn’t make a ton of sense unless you actually take that money and put it in the bank. Also remember, over the next 12 years you might not get 5%.
The only thing this taught me was that Dave doesn't understand how much $400 is worth.
So correlation equals causation. Good to know.
Yes. Remember to do what rich people do. Because that's how you get rich. Even though their lives are completely different than yours. I mean... at under 3%, almost every rich person I know has a mortgage or three...
@@t185bear "Remember to do what rich people do." Except having and using a credit card (or three). Don't do that. In fact we don't even know if they do that because apparently this large comprehensive study of 10000 millionaires didn't have this question on there.
Jay, here is another risk-related reason to take your mutual fund money and pay off your mortgage: the P/E ratio on the S&P500 is 28.8; the dividend yield on the S&P500 is 1.3%; and, the Shiller P/E on the S&P500 is 36.1. These are all _extreme_ values, indicating overpriced stocks and a coming decline in the markets. If you knew now that your mutual funds would be worth 20%--35% less two years from now, would you use them to pay off your mortgage now?
What does it matter what the market does in two years when it goes up in the long term?
If you're no planning on selling your market related assets anytime soon, your reasoning here doesn't matter
The S&P isn't the only thing to invest in. Money market funds have been returning 5% for over a year now, and they are about as low risk as you get. You can buy literal 10 year treasuries (instead of a fund) that do the same thing, and they will not go down in value if you carry them to term. Though if retirement accounts are fully funded for this year and the next few years, and there is still money left over like this guy has, I would pay down my mortgage as well. Income tax reduction first, then cheap debt.
@@lepoj Good points and a good question! Let me add a couple of comments.
1. Studies show that these financial ratios forecast long-term stock market performance. So, it was my mistake to not mention beyond the two- or three-year horizon.
2. The caller's mortgage has only a 12-year horizon. So, he should be thinking about money over that 12 years, in addition to thinking longer term. In the near term, if he has mutual fund money that he thinks is going to make 10% or 12% or 15%, etc., then he needs to consider the risk that it won't. Conditional upon the multiple I quoted, that current risk is very high.
@@blanketwodahs6741 Very good points. If you think about money market versus paying of the mortgage, then the spread he is capturing is even smaller. Maybe only 3% per year, if he is lucky.
It is true, being debt free is the most freeing feeling than you can imagine. You have another option besides taking it out of your investments. You can make huge principal payments each month and pay it off in a couple of years, putting everything towards that payment. You still keep your investment but put future funds instead toward paying off the mortgage. The other option is to go ahead and pay it off and then you have your mortgage payments to quickly pay back the money you used to pay it off and then continue investing even more than you ever did before.
It all depends on your level of commitment and what your financial plan is honestly making 5k extra a year compounding for the 12 years is a decent amount. I am in the same situations today; I have a 2.5% rate with about 15 years left... over the past 3 years I was going to put everything into the home to get the balance down, and I am glad I did not... over the past three years I have made 72% in my portfolio. 😲 To each their own and one size does not fit all financial plans.
I hope to be 93 with a mortgage.
I think Dave is wrong on this one. He can easily beat 2% by investing. He should invest it. Dave is making an emotional argument, and not a mathematical one.
Genius caller to snap back at Dave on his millionaire survey saying "i doubt those millionaires had a 2% mortgage though" 🎉😂
I don’t believe he has a 2 % mortgage
I owe over $400k on my mortgage wt 2.625% interest. I have 3 kids going to college in the next several years. It would probably take me at least 15 years to pay it off early and i would have not nearly enough to contribute to their college. I need to invest now. Tell me im wrong on this.
You are not wrong. I am in teh same boat with two kids in college. I built a decent seven figure net worth while carrying mortgages, and I still have one at 2.85. not worried about it in the least. What I make every year in investment returns and income tax savings puts me so far ahead of the mortgage interest, it is actually troubling to me that so many people miss out on this whole "life arbitrage" that can make so much more money vs fixating on being debt free.
This year my investment returns alone could pay off my entire mortgage, and the year is only half over. Or .. I could have only made a few percent on my mortgage by paying it down. No thanks...
This is a great video I really appreciate the dedication in each video you post, I learn a lot watching your videos and it has always been helpful to me. Building a steady income is quite difficult for newbies.. Thanks to *Dale Valskov* for improving my portfolio. keep up with the good videos.
I’d just pay it off tbh. One less thing to worry about.
A lot of people don't account for the taxes when doing these calculations which is probably taxed at ordinary income
Paying off my 2.75% mortgage early will save me from paying $3500/ yr. for home insurance. In Florida, but no claims since 1965.
Balance is $30,000
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@lennoxmutterick6434 However, if you do not have access to a professional like CLEMENTINA ABATE RUSSO, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
@@user-qk9ro8rp8t Oh please I’d love that. Thanks!
@@lennoxmutterick6434 Clementina Abate Russo is her name .
Lookup with her name on the webpage.
I feel like Dave is good at avoiding these sensible questions. lol
Was a very beat around the bush response. Run the numbers, see what the final results actually look like.
He does answer directly. You don’t like the truth and the answer so ignore it. You can also check. Go ask your well off friend and family if the have mortgages. Everyone pays those off in the 40s to prepare for buying more homes. Go get a job somewhere so you can see. Debt people can make 400k and be broke.
@@joesmith3590 haha I don't like his answer, it is not the truth. Maybe existing millionaires houses are mostly payed off but they did not have 2% rates for the large majority of their loan. Rates that low are new
Nothing is new kids except you guys got internet and think it makes you experts lol.
People who say $400 a month is spit, can I have $400 a month? Having the cash sit in a safe account earning 5% when you mortgage is 2% have no risk. You can pay it off any time. The argument to take a loan today to invest is moot, you cant get a 2% loan, and when mortgages were 2% you couldn't get 5% CDs or bonds. I prefer to have the options that cash has over just storing value in wood and concrete and dirt.
Great insight, thank you. I'm hedging the payments by paying a few k extra off the Morgage each month and also investing a few k per month and targeting much larger returns than the % on the Morgage. But because I spent the first 4 years furiously paying the Morgage down with every spare cent I had. Its's now only going to take me 7 years to complete the home loan and be debt free.
I expect that "being able to pay off my mortgage at any time" and "not having a mortgage anymore" give very similar feelings. So investing that money, knowing you could just pay off the mortgage, is probably better. I have a buddy who cashed in his savings and paid off the last $60,000 on his house (2.5% 15 year mortgage). And six months later he needed a bunch of home repairs ($20k worth) and had to scramble for the cash.
📌 TA is all well and good but I find it truly baffling that all major stocks you tubers just look at pure TA and completely Ignore the bigger narrative of why stock Is pumping and why the future outlook might not be as rosy as it seems. Alot has changed and that's about it, but the truth is that I don't even care much about the bull or bear market anymore because *Dale Valskov* covered me while I'm doing comfortable. 2.3 BTC per month
I’m 41 and paid off my mortgage by selling my home in an expensive real estate market, and moving to the sun belt and buying my home outright. I now put 60 percent of my income into my retirement account and a small percentage into my taxable investment account as well. I totally agree with the sentiment in this video, with no mortgage you live with a lot less stress.
😂 that was hilarious. “ who wants to be 63 with a mortgage?”
We paid off our mortgage before finding out about Dave's show. I agree that paying off mortgages gives us peace of mind. It wasn't an easy thing to do but we wouldn't trade peace over anything else.