I agree. They can get back into debt if they don’t like being debt free. This yr I put 75k towards my principle. Was at 242k dec 2020 and now oct 2021 down to 167k. Gazelle intensity. Smiles.
The positive reward is that you don't have to worry about losing your job in the future after paying off your mortgage. You will always be able to support yourself flipping burgers at McDonald's because you don't have to pay for shelter which is the largest living cost people have and the main reason why people work to begin with. Even if you invest and earn a higher yield, if you lose your job and cannot get a replacement at the same level of income soon enough there is a high likelyhood you may loose everything you have. The exception to this are high skilled blue collar professionals like truck drivers, mechanics and registered nurses etc. but most people are not in those types of industries. If you have to pay for housing costs jobs basically control and you could even say own your life. Removing the source of your need to have a job allows for personal freedom and moreso future financial freedom from the burden of having to make sure you can pay for a roof over your head
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Appreciate this recommendation, hopefully I can get some insight to where the market is headed and strategies to beat the downtrend with when I hear back from Carol.
My wife and I's monthly payment was $2415 month. We would pay an extra $500 a month towards the principal. We currently just refinanced to get a lower interest rate and to get off of PMI. Our new monthly payment is $2918 a month. We plan on still paying $3700 a month but are now going to do bi-monthly payments.
Try making the payments quarterly, in addition to adding, a payment each month and watch how fast the payments begin to drop on your amortization chart. I've got one more year after starting about a year ago. The timing of the payments is everything. This is the only thing that they all leave out when doing the videos.
Instead of extra payments, I suspect you would be better off putting the $782 per month into shares of Apple and Amazon. The video more or less describes how you can get out of being a debt slave When you have cash you have options. Smart people hold on to cash. They don't instantly shove it toward debt. Once it is used to pay on the debt, it is no longer accessible.
One part of this vid that I do like is the idea of not taking on a large debt in the first place. I think there should be a balance between the amount of debt you incur and the amount of cash you can invest. I would rather have a $1000 house payment and $1000 going into stocks than a $2000 house payment and no stocks. If you have cash and you’re confused I will suggest you contact a finance advisor
Sharon Ann Meny, just check her out. It's better to hire a skilled financial planner especially if you're not one yourself. I hired one after my retirement pension took a hit in 2021 April due to the crash.
I paid up all my mortgages in 2yrs while working with a Financial Adviser. I’m 50 and my husband 54 we are both retired with over $3 million in net worth and no debts. We got to realize that the secret to financial freedom is making better investments.
I read a book that talked about having a financial adviser. Well, Credits to *ROCHELLE DUNGCA-SCHREIBER,* she saw me through the process. You can glance her name up on the internet and verify her yourself. she has years of financial market experience....
H Florence, I'm super inspired but your comment. Would you be willing to share some of your lessons learned? "Teach a man to fish, feed him for a lifetime." 😀🙏
Peace of mind for sure. Also, people don't think about when you no longer have a mortgage you're potentially gaining more time. If I don't have a mortgage, that means I don't have to work as much, and not working will allow you to spend more time on things you'd like to do instead of a 9-5 job. More time with friends, more time with family. Sometimes I feel people don't realize that time is the most important thing.
I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways
Interest rate is currently at 4.75%(8th rate hike since March last year) Inflation at 7% and mortgage rates is at over 7.5% but yet minimum wage remains the same and my retirement portfolio has suffered tremendously these past years, so my question is how do senior citizens retire and live off such unstable economy. The long term game is obviously not for me at this point.
A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
On the contrary, even if you’re not skilled, it is still possible to hire one. I am a project manager and my personal portfolio of approximately $750k took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect and profit from my portfolio this red season. I’ve made over $150k since then.
@@harwellron1289 They are truly top-notch in their profession; I had the pleasure of working with one and it proved to be immensely advantageous as they helped me restructure my entire portfolio. My advisor is none other than "Colleen Janie Towe" , a renowned figure in her line of work whom you may be familiar with.
I paid off my mortgage last November, 13 years early. Not a day goes by where I question that decision. That was the best choice ever. True homeownership is priceless. And yes, of course you still have to pay taxes and home owners insurance. That’s not a big deal when you’re considering the big picture. That’s like complaining that you still have to pay for gas or insurance when you buy a car. 🙄🙄
I paid mine off fifteen years early. I was laid off from my job four years ago and found another job that was not desirable. I quit it after a year. Never thought of retiring earlier than my full retirement age 67 ( I was 56 when I quit). Because my goal was not only to pay off my mortgage early I was an aggressive saver contributing to retirement accounts and my emergency fund. I have decided to retire now as I have my investments laddered. I would not have been able to retire had I not had a game plan to pay my mortgage earlier freeing me up from the most expensive liability.
Congratulations to you.... I'm still toddler stage so that is a big goal I'm working towards.... But a least you have the biggest DEBT paid off unless you have a lot in student loans....
I cleared my mortgage in ten years, saved for the next three and when the credit crunch happened I put down deposits on a few more properties. Fast forward 13 years I've been out of work for five months now, my properties have nearly doubled in that time and I'm saving more than I'm spending. Best thing I've ever done.
My wife and I bought our house at the age of 23 in 2001 paid it off in 2013. Best thing I ever did. My son was born 3 months early at 1lb 4oz with LOTS of medical problems. Since we didn’t have that huge mortgage payment it let her stay home with him and take care of all his needs. Between our house, investments and property we are almost millionaires right now. Our home has more then doubled in value since we bought it
@@davysmith8569 I'd rather let my investments help pay my house off over paying it off from my paycheck. But I have a stable job so it's a little different than self employed people
I love owning my home outright. My mortgage kept me locked into a career that I hated, but now I have hope for the future. Honestly, it never felt like my house as long as the bank held the deed.
I am more concerned about the government taking the house than the mortgage company. Government gets to act above the law more than even the darn bank!
Got one paid off two years ago and now less than two years away from paying the second. The best part is the flexibility and freedom I will gain from it. Life is a lot easier when you you have the ability to say “nah” when a job is crushing your soul. Pack light, travel often, and never let the things you own, own you.
COngrats, but you could have bought 3-4 smaller rental properties and used the rental income to have no housing costs on your primary, plus end up owning all the properties, plus you could borrow against them if needed. We are at record low iteretes rates
@@Jim.Jim.32 while true, that also means I carry the risk of having 3-4 properties whose mortgages I couldn’t have paid if the US government removed my ability to evict problem tenants. That very thing just happened to landlords all around the country. I value my freedom of movement more than max ROI. Different strokes for different folks.
Interesting. When I retired and sold my house I was able to buy my current house for cash. Some friends told me I should take out a mortgage and invest that money. But I never seriously considered doing that, and I must say, I sleep very well at night knowing the house is paid for!
The returns on having a paid off mortgage are more than anything you can make in the market.... If the economy crashes or lose your job. It's nice to tell the family we don't have to worry about foreclosure.
@@rayrayray not sure why you're bragging about not being able to do basic math yourself. I'd rather not give my bank well over $50K+ in mortgage interest just because I wasn't born to rich parents who could offer to loan me $200K+ interest free. Not everyone has financially stable parents to leech off of.
@@kawaiiphase7829 someone doesn’t understand how to calculate interest and forecasted gains. I suggest maybe taking a basic investing class or highschool level Econ class. 🙂
@@rayrayray - What the basic math does not take into account is human nature. Very, very few people have the discipline to stick to the investing plan where it makes sense to keep the mortgage and invest the money that they would have used to pay it off early. Most people would perhaps start investing, but then decide that the extra money would be "better spent" on lease payments for a BMW. The same with people that get a tax refund. If they adjusted their withholding to get that money in their paycheck each week, that small amount would get spent on Starbucks and beer. You may know the math and have the discipline. But the average person retires with well under $100k saved. Going into retirement with a mortgage would be a disaster for them. It is best to pay it off.
Totally agree with you, I have in the past had things go downhill for me and was running around looking for money to pay my mortgage. Now that I find myself in a position to pay off my mortgage early it was a no brainer. We don't know what will happen to us in the future, so in my opinion pay off your mortgage, you can always invest money you gain from no mortgage
I successfully paid off all my mortgages in just two years, thanks to the assistance of a Financial Adviser. At 54 and 48 years old, my husband and I have retired with a net worth surpassing $2 million, and we have no lingering debts. We've recognized that the crucial factor for achieving financial freedom is to make more informed and intelligent investment decisions.
Yes, she can. It’s possible .Numerous avenues exist for generating high yields during a crisis, but engaging in such trades is most advisable under the guidance of a financial advisor.
From my experience, the people against me paying off my mortgage early are people who are basically living paycheck to paycheck and don't have the money to even make extra payments, much less ask the bank for an "early payoff" amount. Why invest in an economy running on a dollar that has lost 94% of its purchasing power since the 70's? I'm 3 years from my goal and there is literally nothing that would stop me from paying off my mortgage 25 years early.
My last payment goes in at midnight tomorrow, 8 years early after 15 years of nothing but financial chaos (2007 recession hit me hard, and what followed after didn't help either), I'm already breathing easier.
@@michaelkeudel8770 Congrats! I have made 2 principal payments a month for the last 8 years...I just made my January 2031 payment.....if I can keep it up, I will be done in 7 years, cutting my 30 year loan into 15 years, and saving $60k in interest.
Dollar losing value=higher inflation helps you if have debt. It reduces the value of the loan. I don’t understand if having the amount you would need to payoff the house in investments, what the difference would be compared to paying off your house. If you needed to pay the mortgage off you can do so quickly. In the long term, your investments will grow quicker than your mortgage rate.
@@mitsospiros List the investments that people should invest in? And I don't mean generic like stocks, real estate, etc. I mean tell me the name of that stock and how much dividends it's paid in the last 5 years. If it's real estate, tell me exactly where that property is located and who to contact to buy it. People are telling you all that they have paid off their mortgage and folks on the sidelines telling them they should have invested. What if they had instead invested that money in ROKU stocks? They would be up sh*t creek right now
@@KnowledgeSeeker78491 mortgages are typically 15 or 30 years. Any index fund tracking the S&P 500 will certainly do better than any mortgage interest rate during that time period.
Ahh yea man when I have to make that choice I’m definitely going to pay it off. Investments aren’t 100% safe but paying off your house is 100% effective
I made the last payment on my house January 29, 2021 and you don't need to tell me why you don't regret it. That sure does free up a considerable amount of money. My investment advisor actually told me NOT to pay off my mortgage because at that point it isn't anything but a "dead" asset. I fired the guy. Great video!
Why would a investment advisor tell you not to pay off your mortgage? 🤔 Is it because he feels you won’t have the money to invest with him do to paying your mortgage off early. 🤔 Yea you did the right thing by firing that guy! 👏🏾💯💯💯
My wife and I did the same for the sole reason of safety net for our family. Same with credit cards and loans. Thank God we did! My wife lost her job due to covid this year and doing the numbers there is no way we could cover our expenses and would likely be homeless. Pay off large debt, save and invest. Free yourselves from the banking system.
Some people's comments here show how bitter they are about someone else paying off their mortgage early lol. I love the "hur dur property taxes" comments 😄 like you're not already paying property taxes while you have the mortgage, but all of sudden once the mortgage is gone paying property taxes all of a sudden becomes such a challenge 🤣
I paid mine off at 32. It was one of the best decisions I ever made. I don't sweat work - and learning how to save that amount of money was a good lesson in life. People that say that they would rather invest - are usually not investing that amount - that money is usually wasted on toys. You will always need a place to sleep so get it over with, pay it off and move on with life.
I buy 7k of stock per month with my salary. I day trade with margin and made 25k last quarter, but there are taxes on those quarterly gains, so day trading is lame. I don't recommend it unless there are sure trades. Most people lose on day trading.
You can't out trade a bull run when you are holding hundreds of thousands in a company, plus long-term gains are lower. So, buying a good company with lots of money and holding is the best deal. Day trading is okay, but few are great.
Honestly, paid off mine years ago yes I could have invested the money but had something happened like losing my job or as happened my work hours got cut then my mortgage would have been unpayable. A nest egg is nice but worrying over debt collectors knocking on the door because you haven't made the mortgage payments is simply by miles worse it leaves you up all night scared to open the mail, answer the phone and gives you sleepless nights.
It's amazing how few people are supportive of paying off a mortgage. We did it to get out of the cycle of owing other people money. Feels fantastic to no longer be held to someone else's demands every month. Making financial decisions on my own terms with my entire paycheck is priceless.
They don't want to give up their lifestyle. I'm making the assumption that most people have to cut back in order to afford the additional payment money.
yep. knowing whatever happens you will never loose your home. we paid ours off in 2017. since then we live like royalty. can buy almost anything we want when we want
Yup, I agree with JJ!! The best feeling I have was paying off my mortgage. That leaves me $1600 a month for building a nest egg. If for whatever I reason lose my job, I still have a roof over my head and much less stress. If I want to skip putting that money into a nest egg for a month I don't have stress. If I want to use that $1600 for a trip, I take it. That extra $1600 feels like a nice fat raise with much less stress indeed.
I paid of my mortgage as soon as i had the money to do so. This was the only debt i have ever had and am a person who is quite happy to wait until i have the money to buy something. No need to ever be in debt and if something goes wrong and i loose my job then i still have a home.
Exactly! A lot of times when you have to save to buy something that you "think" that you really want you find out when you then have the money you really didn't want it that bad OR it's now much cheaper to buy.
I'm turning 60 this year. We own 6 income properties. Yes there was a lot of sacrifice to make that happen. You're on the right path. The freedom from stress, from debt and the Idea that you're not a slave to the banks, is just so soothing and calming. You become more peaceful in yourself when you can channel your energy to things that you choose, not things that debt dictates. I hope many folks are inspired by your story and they too break the bonds of debt.
I have challenged myself to put away 50% of my monthly income into stocks which is quite easy since I live frugal without debt. I work as an account executive, and make over $20000. $10000 goes into dividends, and the other $10000 covers my my food plus living expenses. I am seeing improvements in my portfolio, dividends look certain, but I have to attribute this to only to guidance of a licensed fund manager who allocates funds to a plethora of assets. I have to stay disciplined, and remember that I’m in it for the long term. Just got my first property and hopefully looking to get another down the road. Good luck to everyone and thanks for the great video.
@Joey PerolliniAs I said, it’s the help of an astute trade manager , Herman W Jonas, I’ve gotten into stocks and fx, splitting my funds in different assets that have brought me huge roi. I just reinvest and grow my portfolio at intervals. Here,
@Adam HaddadI have made over $47k in profits, more so because I am reinvesting every two weeks. His strategies cuts across major financial markets which cuts across major markets which I found to generate more profit.
Mine is being paid off at the end of the month! 6 years into a 15 year note! It’s been a struggle but worth it 100% My problem with people that say it’s smarter to invest and keep the mortgage is that they don’t..they just keep the mortgage around, invest minimally, and end up wasting away that money on things like cars/toys, and never really invest anyway.. I decided to pay off the mortgage first in a hurry, then I can set my investments where I want them afterwards, and any income on top of that is mine to do as I please. The peace of mind know that you own your house is more comforting to me than watching market numbers go up, or even worse, down, while still making a house payment..
Paid off our mortgage early. I had a big career decision and it was easy to do, because I had no mortgage payment. That decision led to 20% increase in pay over 2-3 years. If we had that large mortgage payment, I am not sure I would have taken the job.
I paid off my mortgage too. Then quit the job I hated. I make less money than last few years but I have a job I like and don't stress about my monthly expenses.
Thank goodness you brought this up! Truly, investing has changed my perspective on how one can succeed in life; working multiple jobs isn't the optimal way to attain financial freedom and unfortunately, we discover this later in life. Currently earn as much as 10 grand weekly and this has improved my financial life. Great piece!...
Wow, congratulations on your impressive investment success! Your discipline and focus on delayed gratification is truly inspiring. I'm curious, what are some of the key factors that you consider when making investment decisions? Do you have any tips for those of us who are just starting to dip our toes into the world of investing? Thanks for sharing your story!
Olivia Sullivan Financials is my portfolio-coach, I found her on CNBC where she was interviewed, I looked up her name on the internet. Fortunately I came across her and reached out to her, you can verify her yourself.
So I did the math on my house and compared it to the national average for rent and concluded that what I will spend in 25 years in mortgage payments, taxes and insurance would only have covered about 15.5 years of rent. Rent is going to get crazier and crazier in the next few years and that gap will likely only widen but only time will tell.
I agree and did this in a little more than 3 years. I worked in an industry where a career can evaporate in an instant. It allow me freedom at work knowing that if I lost a job I could still live in my home without having to go to damage control and sell the house. It allowed years later to pay cash for building a new home without financing. It freed me from playing the credit game and your FICO score. I just pushed more money towards principal payments each month to the point I could feel the pain. I kept a spreadsheet on how I was paying down the balance and how many square feet of the home I owned with each payment. YES its Worth the Effort to own a home debt free.
Congratulations JJ! Just as I was prepared to pay my last chunk payment, my accountant informed me that I would lose my home base LLC tax write offs; I was able to write off my new roof and other expenses and obtained a refund! I agree 💯 about lowering expenses so I PREPAY my utilities, HOA, car insurance, and purchased my used vehicle in cash! My financial surplus and investment portfolio has given me a huge emotional and confidence boost! Wishing everyone financial freedom!
@@ruralangwin The key is to have a tax preparer who understands how to convert everyday living expenses into legitimate business deductible expenses. Maintenance and repairs are included. You may have to do your homework to locate a knowledgeable preparer. Good luck.
The “lower, cheaper home” and having a healthy investments into retirement are both key to making it an “acceptable choice”. I did the same and I find that doing so makes it easier to accept more risk in my retirement accounts. Where I need it.
Hubby and I paid off our mortgage in 2014. We are both retired now. It was the absolute best decision we ever made. Because of that, we can live mainly off Social Security. We haven't had to touch our retirement accounts yet (other than a home repair, property taxes or a vacation) because we have no debt and our SS income goes much further. Great video.
Paid mine off in March 2021 - Not one regret here and I will not regret it over the next 20+ years I would have had left if I just paid the minimum. Yes your house is an asset but its still a liability if you are making a payment on it and if you lost your job or had health issues its just another stressful debt you gotta find money to cover.
My dad paid his off early. I'll say, it was a great thing when he got dementia. Didn't have to worry about some monthly payment, getting those funds, etc. And now that he has passed, don't have to worry about that mortgage or anything like that when we sell the house.
Paying off my Mortgage was my greatest achievement..I own my own home and nobody can take it away from me..I will sell it when I retire and buy a place by the sea in North Wales.
Have to totally agree with you on better sleep. I’ve been sleeping great the past couple of months since paying off my mortgage. Knowing that I don’t have to make that mortgage payment every month feels absolutely great.
This is incredible. Being two years into the journey of getting to financial peace and independence it has already changed my family’s life. The disagreement other people have shown even when I have evidence of how it’s improved our situation was definitely unexpected, but every step closer to independence we get I can see some people start to pay attention a bit more. I can’t imagine not having the “North Star” of financial independence in my life!
USA folks hate seeing anyone get actual freedom. When you are free of financial enslavement others get very angry for not taking for the propaganda they worship.
Great explanation of your overall financial picture. In my opinion, you can’t put a price on the freedom of having no mortgage. Especially in current times where the government over reach is becoming more and more frequent.
Great video. I paid off my mortgage 6 months ago at precisely half the time of the original expected 25 years. I heard the same thing: Money is cheap. Should have invested the money where returns are higher than the mortgage rate. Do I regret it? Not a chance. Hell NO. If there's regret, I wish I'd started earlier as I only focus on paying down my mortgage 6 years into home ownership. And nowhere I compromised my standard of living along the way and I am not a frugal person. I just developed better wiser spending habits. Not too many things in life give me peace of mind EVERY single day and being debt free is chief among them.
I have made 2 principal payments a month for the last 8 years...I just made my January 2031 payment.....if I can keep it up, I will be done in 7 years, cutting my 30 year loan into 15 years, and saving $60k in interest.
I notice that most people that give the advice to not pay off the house have never payed off a house, and may the minimum on their mortgage. Being the paid for house gang... it is not worth the stress of a mortgage to keep it around.
Good for you man. I'm living in a house that is way too big for my family, even to the point where I wished I'd stay put in my smaller house that had less up keep. My mortgage payments are low, but I'd love to do what you've done and pay my mortgage off early. Congratulations on getting it out the way so young. Best of luck to you for the future.
Listen, you don't own " YOUR " home until you pay that last payment ! Hello from England. I paid my mortgage off aged 43 . Today people borrow money for new cars and to look rich. Be sensible , think ahead
People who think it's dumb to pay off their mortgage early have not lived through the 1970 or 80s - Good luck to them thinking "this time is different"
JJ's opinion: Safety & Sleeping better at night is the top reason for JJ paying his home off early, especially since he works for himself and his income sources could drop at any moment which he then says would mean he would have to startup another business. My take: It is actually safer, more profitable, and more tax efficient to NOT pay it off. Setup a brokerage account called the "PAY OFF THE HOUSE FUND" and put every dime there. Now JJ could write off more interest each year to offset his income tax, grow those funds with a conservative investment strategy, AND if his income stops for any reason he could draw off the fund to pay his mortgage and more importantly fund the next business.
One thing to note for those that have only been in the stock market for 12 years or less (or especially the last 1.5 years), those returns are not guaranteed to outperform your mortgage interest rate. Stonks don't always go up. For people with less than ultra steady jobs, you can do a lot worse than getting out of debt when times are good.
@@amabdall the main problem is that most people don’t do either..they accept the mortgage as a life sentence, and waste away any remaining money..on paper it makes sense, but it’s hard to put into action.
@@amabdall Not every year is gauranteed to have a positive return is what he's saying. Paying off your mortgage is a gauranteed return on investment. There is a risk factor to this equation
Its not just comparing interest rates when comparing paying mortgage and investing. Rise in equity of the property must be factored in. If you bought in 2008 the value of the property may have increased 3x, which means you save the interest and every dollar put into the principal instantly becomes worth $3 more... and it is as close to liquid as you can get because property is selling in less than a week on average.
I'm following in your footsteps! I've been making extra mortgage payments for the past year and a half. But I agree, I still max out my retirement and do this in addition to, not instead of, my regular investments. I think it's best to do a little bit of everything.
I agree with you 100%. I paid off my 30 year mortgage in less than 8 years. Do not regret it. Meanwhile my 401k has lost 12k since January 2022. I saved tons of $$ by doing so.
Good stuff as always. Personal finance, is well, personal! We need to make the decisions that make us feel good and can create a balanced approach to our lives.
Congrats to you and your wife! I appreciate you sharing your experience. I am also trying to pay my mortgage off early for personal reasons as well. And this video helped motivate me to continue through with my plan.
Great video and interesting points. I saw on the Money Guys recently an interesting point re paying off or not. That is age. They say if you're approaching 50 then start paying off the mortgage as part of de risking. I think even part paying it is fine as well as investing, the closer to 50 you are. Sleeping soundly is very important. I'm self employed too, love from the UK 🇬🇧
With what I’ve learned over two decades investing, given enough time, solid investments have the potential to double the initial principal amount, but many investors are instead attracted to the lure of high yields in short periods of time despite the possibility of unattractive losses before even getting out. So the onus is on newbies to beware.
@Ralph Zimmerman Stock investing, when done well, is among the most effective ways to build long term wealth. I work with a fiduciary Levi Clemans, a renowned fiduciary. His guidance has given me an edge in the market. Here, reach him
Hey JJ congratulations. I also paid off my mortgage last year November and the best feeling EVER!!!! Still working 9-5 and saving to invest more in the meantime. Looking to team up with real estate investors to start making real money in real estate.
The question is not what only makes mathematical sense, its about what makes you sleep better at night. Paying off mortgage most certainly makes you sleep better at night regardless of how much opportunity you might have missed out on. I have been mortgage free in the UK since age 23. Me and wife have the option to work on what ever we want, work for who ever we want. Or simply not have to work and trade time for money
It's just risk tolerance.... Pay off your mortgage and be much more secure. Put the money in something else, most likely make more money but also risk getting caught with your pants down and not being able to pay that mortgage. Small risk, but probably worth it for most people.
I was in the no mortgage club. Was amazing. Truely freedom. Could raise a baby and live off one income. Now I have a bigger house and I kind of miss no mortgage and smaller house.
An ideal plan: Get married, work hard with double income to afford mortgage (aka leveraged borrowing) on big house. Have kids, sell big house, use capital gain to buy small house allowing stay-at-home parent(s). When kids at school, buy bigger house with mortgage (with 2x income) for more room. When kids leave, sell big home and live mortgage free in more modest home - smaller income required. Use money to help kids with buying home. (Seems obvious now - to someone who has failed to follow his own advice :) )
I was laid off before my scheduled retirement. One of the decisions I made was to buy a newer but smaller home cash and bank the residual of the 403b in an annuity account. I look at the monthly rent/payment avoided as a dividend, that is effectively tax free. Everyone pays property taxes either directly or in the rent/lease so I look at that as a wash. Both cars have been paid off for years, but I did buy a new one recently with the oldest earmarked for my son who is in basic training at the moment. Everything you said makes perfect sense to me and has worked out well for the past 10 years. By the way, market value on the house has appreciated 232% based on reported market values so I guess even my derived dividend increased right along with the market value.
Congratulations!! Having no mortgage is the best gift a homeowner can give themselves. Plus, should you decide to move, you have all that capital to put down. 👏🏾👏🏾👏🏾. I love it!!
people who say they'd rather invest than pay off mortgage because of the math aren't doing either one of those things. paying off your mortgage early makes everything a million times less stressful and it's worth it for that alone.
I'm subscribing right now and forever. Never found any person expressing himself as good as you do. Clear as flowing water. And I'm Spanish so Im pretty sure of that. Thanks a lot for your knowledge and sharing it with us.
I couldn’t imagine getting a mortgage on a paid off house and then throwing that money into the stock market. That scenario is IDENTICAL to not paying off your mortgage to invest.
Yes the mortgage is the cheapest debt you have and you should 100% pay off other debt first. But the two largest signifiers of later life financial freedom is no debt and owning your own home. You can’t realistically retire these days with a mortgage still hanging over your head.
In my experience, those people that offer advice about investing and finance, and have all the answers about paying your mortgage, stocks, savings, retirement, etc. never have any money of their own. They are dead broke and live paycheck to paycheck, but somehow still have all the answers about finance. I prefer to listen to someone such as you. And me for that matter. I have no bills and a healthy retirement account. Not rich by any measure, but I could stop working today and live comfortably the rest of my life.
Good advice all around. I wish young people would understand its NOT either/or. Yeah, invest but its ok to also pay off mortgage early if you can. Also, no one, and i mean no one, ever said “ I regret paying off my mortgage…”
Found this video helpful!!! I totally agree with you as far as paying your mortgage off early. I am recently a new home owner and my goal is to pay off my mortgage early as well.
We paid off our mortgage early and yes it gives me peace of mind. One less large payment each month and you can take that money and put it somewhere else
Totally agree, no market return can compare to the independence and peace of mind paying off mortgage can give you, living stress free can never be bad, but yes also agree that keep investing as well on the side :)
I feel like only a person who's never had to worry about how they're going to pay their bills would have trouble understanding the appeal of paying off the biggest bill most people ever have.
Generally it isn’t about “paying the bills.” Most people stay at a job they hate because they have a mortgage and a $500 car payment, granted yes that’s poor financial management if it’s not budgeted but paying off your mortgage or even car allows you to quit that job you hate and not have high expectations of another job. I’m comfortable enough to quit my job, find a “starter” job until I find another job that needs my needs. Long story short paying off the mortgage allows freedom to do whatever you want
@@Lobo59470 i definitely understand that. Also I understand that everyone isn't strapped trying to figure out how to get by and certainly shouldn't be talking about investing if they're in that position. My point is that even though I don't have to worry about that today, I know what it's like and knowing i wouldn't have to ever think about it at all would be a load off my shoulders, and therefore I would have the freedom to do the things I would like to do with less worry. Just like any other debt, getting that out of the way means peace of mind and yes, freedom. For a person to not comprehend that is very close minded.
Not necessarily, it has to do with whether you can control your emotions and work the math instead of just feeling better now but wasting an opportunity to be better off 10 years down the road. And that's the difference between low income and middle class people and rich ones
I appreciate your feedback on this. I'm currently in the position doubting on which next step should I take to get closer to FI: invest in a second rental property or use the savings to start paying off my mortgage. What makes it a tough decision for me is because knowing how compound interest works, the sooner you invest, more it will compound. But right now I'm more towards paying off the mortgage, as you said as well as other comments, living without a mortgage gives you that "special" feeling. And also, I'm starting to believe that it's actually the closest path to reach FI. Cheers from Barcelona, Spain!
Peace of mind of not having that monthly mortgage payment is good for me..Stock Market can be up or down and you take a chance..Great information brother..Keep Crushing It!! Stay HUMBLE, Stay HUNGRY, Stay FOCUSED...~The Jarhead Entrepreneur
No need to pay the entire mortgage off unless you are in/nearing retirement. You are better off investing that money. 9-12 months of emergency savings in a liquid account should be more than enough to cover any job loss or other financial emergency while your invested money grows. My two cents is free.
If you do the calculations the amount of money you put into lump sums and the amount of interest you save is HUGE. Lumposums in the beginning is important because youre paying all interest at first but lump sums go into principal.
👆 SUBSCRIBE To My 2nd Channel and Follow Along in the Dividend Portfolio Challenge: th-cam.com/channels/dLBOXcy4DSOnopmIumAYww.html
Smart play and u always have a roof over your head with no worries.
I agree. They can get back into debt if they don’t like being debt free. This yr I put 75k towards my principle. Was at 242k dec 2020 and now oct 2021 down to 167k.
Gazelle intensity. Smiles.
JJ you have a striking resemblance to retired MLB player Russell Martin.
The positive reward is that you don't have to worry about losing your job in the future after paying off your mortgage. You will always be able to support yourself flipping burgers at McDonald's because you don't have to pay for shelter which is the largest living cost people have and the main reason why people work to begin with. Even if you invest and earn a higher yield, if you lose your job and cannot get a replacement at the same level of income soon enough there is a high likelyhood you may loose everything you have. The exception to this are high skilled blue collar professionals like truck drivers, mechanics and registered nurses etc. but most people are not in those types of industries. If you have to pay for housing costs jobs basically control and you could even say own your life. Removing the source of your need to have a job allows for personal freedom and moreso future financial freedom from the burden of having to make sure you can pay for a roof over your head
If my Bitcoin skyrockets, I can pay off my townhouse
If you regret it you can always get another one.
haha love this!
😂😂😂
Dave Ramsey listener right there
Where’s your channel Casey?
@@jjbuckner it's a Dave Ramsey quote. The person you replied to literally posts a comment on every single Dave Ramsey video.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Appreciate this recommendation, hopefully I can get some insight to where the market is headed and strategies to beat the downtrend with when I hear back from Carol.
My wife and I's monthly payment was $2415 month. We would pay an extra $500 a month towards the principal. We currently just refinanced to get a lower interest rate and to get off of PMI. Our new monthly payment is $2918 a month. We plan on still paying $3700 a month but are now going to do bi-monthly payments.
Try making the payments quarterly, in addition to adding, a payment each month and watch how fast the payments begin to drop on your amortization chart. I've got one more year after starting about a year ago. The timing of the payments is everything. This is the only thing that they all leave out when doing the videos.
Instead of extra payments, I suspect you would be better off putting the $782 per month into shares of Apple and Amazon. The video more or less describes how you can get out of being a debt slave When you have cash you have options. Smart people hold on to cash. They don't instantly shove it toward debt. Once it is used to pay on the debt, it is no longer accessible.
One part of this vid that I do like is the idea of not taking on a large debt in the first place. I think there should be a balance between the amount of debt you incur and the amount of cash you can invest. I would rather have a $1000 house payment and $1000 going into stocks than a $2000 house payment and no stocks. If you have cash and you’re confused I will suggest you contact a finance advisor
Sharon Ann Meny, just check her out. It's better to hire a skilled financial planner especially if you're not one yourself. I hired one after my retirement pension took a hit in 2021 April due to the crash.
I paid up all my mortgages in 2yrs while working with a Financial Adviser. I’m 50 and my husband 54 we are both retired with over $3 million in net worth and no debts. We got to realize that the secret to financial freedom is making better investments.
That is so amazing, I’m trying to get onto the investing ladder at 40. I wish at 55 I will be testifying to similar success..
I read a book that talked about having a financial adviser. Well, Credits to *ROCHELLE DUNGCA-SCHREIBER,* she saw me through the process. You can glance her name up on the internet and verify her yourself. she has years of financial market experience....
H Florence,
I'm super inspired but your comment.
Would you be willing to share some of your lessons learned?
"Teach a man to fish, feed him for a lifetime." 😀🙏
Pay of your mortgage is a great peace of mind. Everyone talks about the math but forget the psychology
Agreed!
Agreed a thousand percent
Facts.... peace of mind is priceless.
Peace of mind for sure. Also, people don't think about when you no longer have a mortgage you're potentially gaining more time. If I don't have a mortgage, that means I don't have to work as much, and not working will allow you to spend more time on things you'd like to do instead of a 9-5 job. More time with friends, more time with family. Sometimes I feel people don't realize that time is the most important thing.
Managing your money based on emotions... yeah great idea.
I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways
Interest rate is currently at 4.75%(8th rate hike since March last year) Inflation at 7% and mortgage rates is at over 7.5% but yet minimum wage remains the same and my retirement portfolio has suffered tremendously these past years, so my question is how do senior citizens retire and live off such unstable economy. The long term game is obviously not for me at this point.
A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
On the contrary, even if you’re not skilled, it is still possible to hire one. I am a project manager and my personal portfolio of approximately $750k took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect and profit from my portfolio this red season. I’ve made over $150k since then.
@@joshbarney114 I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?
@@harwellron1289
They are truly top-notch in their profession; I had the pleasure of working with one and it proved to be immensely advantageous as they helped me restructure my entire portfolio. My advisor is none other than "Colleen Janie Towe" , a renowned figure in her line of work whom you may be familiar with.
I paid off my mortgage last November, 13 years early. Not a day goes by where I question that decision. That was the best choice ever. True homeownership is priceless. And yes, of course you still have to pay taxes and home owners insurance. That’s not a big deal when you’re considering the big picture. That’s like complaining that you still have to pay for gas or insurance when you buy a car. 🙄🙄
I paid mine off fifteen years early. I was laid off from my job four years ago and found another job that was not desirable. I quit it after a year. Never thought of retiring earlier than my full retirement age 67 ( I was 56 when I quit). Because my goal was not only to pay off my mortgage early I was an aggressive saver contributing to retirement accounts and my emergency fund. I have decided to retire now as I have my investments laddered. I would not have been able to retire had I not had a game plan to pay my mortgage earlier freeing me up from the most expensive liability.
Congrats and I do agree, yet if property taxes are not paid, the true owners will come for their property.
Congratulations to you.... I'm still toddler stage so that is a big goal I'm working towards.... But a least you have the biggest DEBT paid off unless you have a lot in student loans....
@Emartinez2499 No property taxes here. I’m a disabled vet.
@@thesuperioraffection4502 I’m a true home owner and disabled vet. No property taxes here.
I cleared my mortgage in ten years, saved for the next three and when the credit crunch happened I put down deposits on a few more properties. Fast forward 13 years I've been out of work for five months now, my properties have nearly doubled in that time and I'm saving more than I'm spending. Best thing I've ever done.
Just to add in that time I took every shift available to me and saved a lot, it took 25 years of hard work.
Kudos! What a great motivating accomplishment !!
@@flawedsparkle6618 thanks, it's not easy but it's not impossible
👏🏿👏🏿👏🏿👏🏿👏🏿👏🏿👏🏿👏🏿👏🏿👏🏿
Absolutely well done... Younger generation can learn a thing or two about being debt free
Correct. Living in a paid for house for almost 20 years. We are living quite well on what many would call a “low” income. 😒😎
My wife and I bought our house at the age of 23 in 2001 paid it off in 2013. Best thing I ever did. My son was born 3 months early at 1lb 4oz with LOTS of medical problems. Since we didn’t have that huge mortgage payment it let her stay home with him and take care of all his needs. Between our house, investments and property we are almost millionaires right now. Our home has more then doubled in value since we bought it
Those investments are not guaranteed to pay you back. It's a risk. Pay off your mortgage so you're not paying interest
Exactly
truth, owning your house IS a guarntee. Own it then play around with "investments"
@@davysmith8569 I'd rather let my investments help pay my house off over paying it off from my paycheck. But I have a stable job so it's a little different than self employed people
oh great another amateur in the markets who doesn't know what they're doing lmao
With a 30 year horizon (the length of the standard mortgage) the market has always returned net positive.
I love owning my home outright. My mortgage kept me locked into a career that I hated, but now I have hope for the future. Honestly, it never felt like my house as long as the bank held the deed.
Amen! Modern day slaves to the system
The government still owns your home, stop paying your property taxes and see what happens. We are renters of everything.
@MikkelRS that is awesome!
Well said.👏
I am more concerned about the government taking the house than the mortgage company. Government gets to act above the law more than even the darn bank!
Got one paid off two years ago and now less than two years away from paying the second.
The best part is the flexibility and freedom I will gain from it. Life is a lot easier when you you have the ability to say “nah” when a job is crushing your soul.
Pack light, travel often, and never let the things you own, own you.
Absolute truth right there. We love it, the freedom is great.
COngrats, but you could have bought 3-4 smaller rental properties and used the rental income to have no housing costs on your primary, plus end up owning all the properties, plus you could borrow against them if needed. We are at record low iteretes rates
@@Jim.Jim.32 while true, that also means I carry the risk of having 3-4 properties whose mortgages I couldn’t have paid if the US government removed my ability to evict problem tenants.
That very thing just happened to landlords all around the country.
I value my freedom of movement more than max ROI. Different strokes for different folks.
@@Jim.Jim.32 can still do that now. And having credit is not As comfortable for some as others
Well said, Whiskey!
Interesting. When I retired and sold my house I was able to buy my current house for cash. Some friends told me I should take out a mortgage and invest that money. But I never seriously considered doing that, and I must say, I sleep very well at night knowing the house is paid for!
Don't you hate people giving you unsolicited advice about what to do with your money?
Good job
No better feeling than knowing bank can Fu(k off
You own that pice of heaven on earth 👍🏻
The peace of mine is worth it.
@@linuxsurfer2002 So is the Peace of MIND. 😁
The returns on having a paid off mortgage are more than anything you can make in the market.... If the economy crashes or lose your job. It's nice to tell the family we don't have to worry about foreclosure.
I see you are not a fan of basic math.
@@rayrayray Show us your "basic math" that includes risks that could destroy your income and/or investments. Ray.
@@rayrayray not sure why you're bragging about not being able to do basic math yourself. I'd rather not give my bank well over $50K+ in mortgage interest just because I wasn't born to rich parents who could offer to loan me $200K+ interest free. Not everyone has financially stable parents to leech off of.
@@kawaiiphase7829 someone doesn’t understand how to calculate interest and forecasted gains. I suggest maybe taking a basic investing class or highschool level Econ class. 🙂
@@rayrayray - What the basic math does not take into account is human nature. Very, very few people have the discipline to stick to the investing plan where it makes sense to keep the mortgage and invest the money that they would have used to pay it off early. Most people would perhaps start investing, but then decide that the extra money would be "better spent" on lease payments for a BMW. The same with people that get a tax refund. If they adjusted their withholding to get that money in their paycheck each week, that small amount would get spent on Starbucks and beer. You may know the math and have the discipline. But the average person retires with well under $100k saved. Going into retirement with a mortgage would be a disaster for them. It is best to pay it off.
Totally agree with you, I have in the past had things go downhill for me and was running around looking for money to pay my mortgage. Now that I find myself in a position to pay off my mortgage early it was a no brainer. We don't know what will happen to us in the future, so in my opinion pay off your mortgage, you can always invest money you gain from no mortgage
My house is paid off, as well. And property taxes and overall running costs are low.
Excellent peace of mind, WAY more cash to do/buy things I want.
Peace**
I successfully paid off all my mortgages in just two years, thanks to the assistance of a Financial Adviser. At 54 and 48 years old, my husband and I have retired with a net worth surpassing $2 million, and we have no lingering debts. We've recognized that the crucial factor for achieving financial freedom is to make more informed and intelligent investment decisions.
That's impressive ! I could really use the expertise of these advisors.
This thread is a total load of crap.
@Rodxmirixm You won’t.
Yes, she can. It’s possible .Numerous avenues exist for generating high yields during a crisis, but engaging in such trades is most advisable under the guidance of a financial advisor.
That's truly remarkable! I could certainly benefit from the valuable insights and supervision provided by these advisors.
From my experience, the people against me paying off my mortgage early are people who are basically living paycheck to paycheck and don't have the money to even make extra payments, much less ask the bank for an "early payoff" amount. Why invest in an economy running on a dollar that has lost 94% of its purchasing power since the 70's? I'm 3 years from my goal and there is literally nothing that would stop me from paying off my mortgage 25 years early.
My last payment goes in at midnight tomorrow, 8 years early after 15 years of nothing but financial chaos (2007 recession hit me hard, and what followed after didn't help either), I'm already breathing easier.
@@michaelkeudel8770 Congrats! I have made 2 principal payments a month for the last 8 years...I just made my January 2031 payment.....if I can keep it up, I will be done in 7 years, cutting my 30 year loan into 15 years, and saving $60k in interest.
Dollar losing value=higher inflation helps you if have debt. It reduces the value of the loan.
I don’t understand if having the amount you would need to payoff the house in investments, what the difference would be compared to paying off your house. If you needed to pay the mortgage off you can do so quickly. In the long term, your investments will grow quicker than your mortgage rate.
@@mitsospiros List the investments that people should invest in? And I don't mean generic like stocks, real estate, etc. I mean tell me the name of that stock and how much dividends it's paid in the last 5 years. If it's real estate, tell me exactly where that property is located and who to contact to buy it.
People are telling you all that they have paid off their mortgage and folks on the sidelines telling them they should have invested. What if they had instead invested that money in ROKU stocks? They would be up sh*t creek right now
@@KnowledgeSeeker78491 mortgages are typically 15 or 30 years. Any index fund tracking the S&P 500 will certainly do better than any mortgage interest rate during that time period.
I work for a loan servicing company, and this man is correct for the typical homeowner. At any time you could be facing foreclosure.
Ahh yea man when I have to make that choice I’m definitely going to pay it off. Investments aren’t 100% safe but paying off your house is 100% effective
I made the last payment on my house January 29, 2021 and you don't need to tell me why you don't regret it. That sure does free up a considerable amount of money. My investment advisor actually told me NOT to pay off my mortgage because at that point it isn't anything but a "dead" asset. I fired the guy. Great video!
Why would a investment advisor tell you not to pay off your mortgage? 🤔 Is it because he feels you won’t have the money to invest with him do to paying your mortgage off early. 🤔 Yea you did the right thing by firing that guy! 👏🏾💯💯💯
@@DJYFii He even said he would miss out on fees and commissions. He's really going to miss out now!
Fired the guy tho😂😂😂
That’s why I never hire so called “ advisors “ in my life, because,,,,,, they are a joke.
@@tz8662 They want money, so be it.
Mortgage free gang 👀
The real Marko in da house
Psychological security and freedom , worth more than math equations
Sweet! Marko you are everywhere.
Apple 🍏 bottom Jeans 👖 😂
Marko; love your videos man. Love when one content 😌 producer watches another.
My wife and I did the same for the sole reason of safety net for our family. Same with credit cards and loans. Thank God we did! My wife lost her job due to covid this year and doing the numbers there is no way we could cover our expenses and would likely be homeless. Pay off large debt, save and invest. Free yourselves from the banking system.
Ding ding ding. This is exactly why it's the smart move
🎯
Paying off my mortgage was the best thing I'd ever done. You don't realize what you can do with 2800 more a month in your pocket
I feel like some people are lucky if they make 2800 a month 😂
Is the $2800 only your mortgage amount or does that include taxes & ins?
@@lulupiink6698 good question
Wow that’s massive amount of mortgage. My mortgage is €281 per month. With utilities, insurance, TV, internet, community fee, a total €500 all-in.
Meanwhile I make net 2000 a month. Lol
Some people's comments here show how bitter they are about someone else paying off their mortgage early lol. I love the "hur dur property taxes" comments 😄 like you're not already paying property taxes while you have the mortgage, but all of sudden once the mortgage is gone paying property taxes all of a sudden becomes such a challenge 🤣
👍👍👍👍💯
😂😂😂 dude you are so right
Wish I could heart this
if you dont have a rent or mortgage payment imagine how much you could dump into investments....thats why you pay off mortgage early.
I paid mine off at 32. It was one of the best decisions I ever made. I don't sweat work - and learning how to save that amount of money was a good lesson in life. People that say that they would rather invest - are usually not investing that amount - that money is usually wasted on toys.
You will always need a place to sleep so get it over with, pay it off and move on with life.
👍👍👍👍. They are always broke
I buy 7k of stock per month with my salary. I day trade with margin and made 25k last quarter, but there are taxes on those quarterly gains, so day trading is lame. I don't recommend it unless there are sure trades. Most people lose on day trading.
Owning a house only makes sense if you are not high income and/or have kids. The stock market will crush it if you can put enough in.
You can't out trade a bull run when you are holding hundreds of thousands in a company, plus long-term gains are lower. So, buying a good company with lots of money and holding is the best deal. Day trading is okay, but few are great.
Honestly, paid off mine years ago yes I could have invested the money but had something happened like losing my job or as happened my work hours got cut then my mortgage would have been unpayable. A nest egg is nice but worrying over debt collectors knocking on the door because you haven't made the mortgage payments is simply by miles worse it leaves you up all night scared to open the mail, answer the phone and gives you sleepless nights.
It's amazing how few people are supportive of paying off a mortgage. We did it to get out of the cycle of owing other people money. Feels fantastic to no longer be held to someone else's demands every month. Making financial decisions on my own terms with my entire paycheck is priceless.
They don't want to give up their lifestyle. I'm making the assumption that most people have to cut back in order to afford the additional payment money.
Plus paying huge sum of money in Interests each month to make someone else rich
Because the opportunity costs are high. I'd rather invest the $500k elsewhere and pay a 3% mortgage when I'll be earning 7%+.
7% > 3%, not that hard.
yep. knowing whatever happens you will never loose your home. we paid ours off in 2017. since then we live like royalty. can buy almost anything we want when we want
@@hello-nq3ze except now you're paying 7%+ that's hard to beat the investement
Yup, I agree with JJ!! The best feeling I have was paying off my mortgage. That leaves me $1600 a month for building a nest egg. If for whatever I reason lose my job, I still have a roof over my head and much less stress. If I want to skip putting that money into a nest egg for a month I don't have stress. If I want to use that $1600 for a trip, I take it. That extra $1600 feels like a nice fat raise with much less stress indeed.
I love your response and hope xrp was a good reason you could do that.. 🎉😂
I buy 7k of stock per month. If you are high income with no kids, going 100% stock market is the best.
I paid of my mortgage as soon as i had the money to do so. This was the only debt i have ever had and am a person who is quite happy to wait until i have the money to buy something. No need to ever be in debt and if something goes wrong and i loose my job then i still have a home.
Exactly! A lot of times when you have to save to buy something that you "think" that you really want you find out when you then have the money you really didn't want it that bad OR it's now much cheaper to buy.
I'm turning 60 this year. We own 6 income properties. Yes there was a lot of sacrifice to make that happen. You're on the right path. The freedom from stress, from debt and the Idea that you're not a slave to the banks, is just so soothing and calming. You become more peaceful in yourself when you can channel your energy to things that you choose, not things that debt dictates. I hope many folks are inspired by your story and they too break the bonds of debt.
I have challenged myself to put away 50% of my monthly income into stocks which is quite easy since I live frugal without debt. I work as an account executive, and make over $20000. $10000 goes into dividends, and the other $10000 covers my my food plus living expenses. I am seeing improvements in my portfolio, dividends look certain, but I have to attribute this to only to guidance of a licensed fund manager who allocates funds to a plethora of assets. I have to stay disciplined, and remember that I’m in it for the long term. Just got my first property and hopefully looking to get another down the road. Good luck to everyone and thanks for the great video.
@Joey PerolliniAs I said, it’s the help of an astute trade manager , Herman W Jonas, I’ve gotten into stocks and fx, splitting my funds in different assets that have brought me huge roi. I just reinvest and grow my portfolio at intervals. Here,
Hermanw jonas (a g mal
comm
@Adam HaddadI have made over $47k in profits, more so because I am reinvesting every two weeks. His strategies cuts across major financial markets which cuts across major markets which I found to generate more profit.
The stock market is not tax benifital like real estate is. Causing real estate to be far superior
What industry are you an AE in?
Mine is being paid off at the end of the month! 6 years into a 15 year note! It’s been a struggle but worth it 100%
My problem with people that say it’s smarter to invest and keep the mortgage is that they don’t..they just keep the mortgage around, invest minimally, and end up wasting away that money on things like cars/toys, and never really invest anyway..
I decided to pay off the mortgage first in a hurry, then I can set my investments where I want them afterwards, and any income on top of that is mine to do as I please. The peace of mind know that you own your house is more comforting to me than watching market numbers go up, or even worse, down, while still making a house payment..
Paid off our mortgage early. I had a big career decision and it was easy to do, because I had no mortgage payment. That decision led to 20% increase in pay over 2-3 years. If we had that large mortgage payment, I am not sure I would have taken the job.
I paid off my mortgage too. Then quit the job I hated. I make less money than last few years but I have a job I like and don't stress about my monthly expenses.
Thank goodness you brought this up! Truly, investing has changed my perspective on how one can succeed in life; working multiple jobs isn't the optimal way to attain financial freedom and unfortunately, we discover this later in life. Currently earn as much as 10 grand weekly and this has improved my financial life. Great piece!...
Wow, congratulations on your impressive investment success! Your discipline and focus on delayed gratification is truly inspiring. I'm curious, what are some of the key factors that you consider when making investment decisions? Do you have any tips for those of us who are just starting to dip our toes into the world of investing? Thanks for sharing your story!
Do you mind sharing info on the adviser who
assisted you? I'm 39 now and would love to
grow my portfolio and plan my retirement
Olivia Sullivan Financials is my portfolio-coach, I found her on CNBC where she was interviewed, I looked up her name on the internet. Fortunately I came across her and reached out to her, you can verify her yourself.
Thanks, I just googled her I'm really impressed with her credentials. I reached out to her since I need all the assistance I can.
This is a good recommendation my friend. My first experience with her gave me the assurance that has made me to invest without fear of loosing
Buying the house that made sense financially to begin with is the key to this video. Congrats JJ!
So I did the math on my house and compared it to the national average for rent and concluded that what I will spend in 25 years in mortgage payments, taxes and insurance would only have covered about 15.5 years of rent. Rent is going to get crazier and crazier in the next few years and that gap will likely only widen but only time will tell.
I agree and did this in a little more than 3 years. I worked in an industry where a career can evaporate in an instant. It allow me freedom at work knowing that if I lost a job I could still live in my home without having to go to damage control and sell the house. It allowed years later to pay cash for building a new home without financing. It freed me from playing the credit game and your FICO score. I just pushed more money towards principal payments each month to the point I could feel the pain. I kept a spreadsheet on how I was paying down the balance and how many square feet of the home I owned with each payment. YES its Worth the Effort to own a home debt free.
Kudos! I love the square foot idea! Sweet!
Congratulations JJ! Just as I was prepared to pay my last chunk payment, my accountant informed me that I would lose my home base LLC tax write offs; I was able to write off my new roof and other expenses and obtained a refund! I agree 💯 about lowering expenses so I PREPAY my utilities, HOA, car insurance, and purchased my used vehicle in cash! My financial surplus and investment portfolio has given me a huge emotional and confidence boost! Wishing everyone financial freedom!
You can write off a new roof on the house? If so that’s interesting. I need a new roof
This makes no sense
You can't write off new roof on primary residence in any case.
@@ruralangwin well if she’s got an Llc. And a home based business? I don’t know
@@ruralangwin The key is to have a tax preparer who understands how to convert everyday living expenses into legitimate business deductible expenses. Maintenance and repairs are included. You may have to do your homework to locate a knowledgeable preparer. Good luck.
@@ruralangwin May I recommend the book Get Your Money Back: Tax Deductions You Never Knew About by the brilliant Dr Lynn Richardson
The “lower, cheaper home” and having a healthy investments into retirement are both key to making it an “acceptable choice”. I did the same and I find that doing so makes it easier to accept more risk in my retirement accounts. Where I need it.
I like these types of videos. I've been paying off my loans aggressively since I graduated College and It's been so worth it.
You got this!
Hubby and I paid off our mortgage in 2014. We are both retired now. It was the absolute best decision we ever made. Because of that, we can live mainly off Social Security. We haven't had to touch our retirement accounts yet (other than a home repair, property taxes or a vacation) because we have no debt and our SS income goes much further. Great video.
Love that you gave the short answer in the beginning. Will continue to watch for the full explanation.
Owning your house outright is a massive burden off your shoulders. We bought outright after saving for it 5y, and it was totally worth it.
Paid mine off in March 2021 - Not one regret here and I will not regret it over the next 20+ years I would have had left if I just paid the minimum. Yes your house is an asset but its still a liability if you are making a payment on it and if you lost your job or had health issues its just another stressful debt you gotta find money to cover.
we dont have 20 yrs. we are in end times now. tribulation beating on the door.
My dad paid his off early. I'll say, it was a great thing when he got dementia. Didn't have to worry about some monthly payment, getting those funds, etc. And now that he has passed, don't have to worry about that mortgage or anything like that when we sell the house.
Most people saying not to pay off mortgage early, can’t. Congratulations man!
Paying off my Mortgage was my greatest achievement..I own my own home and nobody can take it away from me..I will sell it when I retire and buy a place by the sea in North Wales.
you dont own your house if you cant afford the property tax on it
Have to totally agree with you on better sleep. I’ve been sleeping great the past couple of months since paying off my mortgage. Knowing that I don’t have to make that mortgage payment every month feels absolutely great.
This is incredible. Being two years into the journey of getting to financial peace and independence it has already changed my family’s life. The disagreement other people have shown even when I have evidence of how it’s improved our situation was definitely unexpected, but every step closer to independence we get I can see some people start to pay attention a bit more. I can’t imagine not having the “North Star” of financial independence in my life!
USA folks hate seeing anyone get actual freedom. When you are free of financial enslavement others get very angry for not taking for the propaganda they worship.
Great explanation of your overall financial picture. In my opinion, you can’t put a price on the freedom of having no mortgage. Especially in current times where the government over reach is becoming more and more frequent.
Great video.
I paid off my mortgage 6 months ago at precisely half the time of the original expected 25 years.
I heard the same thing: Money is cheap. Should have invested the money where returns are higher than the mortgage rate.
Do I regret it? Not a chance. Hell NO. If there's regret, I wish I'd started earlier as I only focus on paying down my mortgage 6 years into home ownership. And nowhere I compromised my standard of living along the way and I am not a frugal person. I just developed better wiser spending habits.
Not too many things in life give me peace of mind EVERY single day and being debt free is chief among them.
I have made 2 principal payments a month for the last 8 years...I just made my January 2031 payment.....if I can keep it up, I will be done in 7 years, cutting my 30 year loan into 15 years, and saving $60k in interest.
I notice that most people that give the advice to not pay off the house have never payed off a house, and may the minimum on their mortgage. Being the paid for house gang... it is not worth the stress of a mortgage to keep it around.
Loved this video and I agree
Tommy; love your videos man. Love when one content 😌 producer watches another.
Good for you man. I'm living in a house that is way too big for my family, even to the point where I wished I'd stay put in my smaller house that had less up keep. My mortgage payments are low, but I'd love to do what you've done and pay my mortgage off early. Congratulations on getting it out the way so young. Best of luck to you for the future.
Love your short answer!! I’m almost in the same situation as you. I’ll be done in 8 months if all goes as planned
Listen, you don't own " YOUR " home until you pay that last payment ! Hello from England. I paid my mortgage off aged 43 . Today people borrow money for new cars and to look rich. Be sensible , think ahead
People who think it's dumb to pay off their mortgage early have not lived through the 1970 or 80s - Good luck to them thinking "this time is different"
👍👍👍
Congratulations on paying off the mortgage! Working towards that goal 🤞🏽 to achieve it in five years or less!
Thanks Wynter! You got this!!
The only people who say paying off your mortgage early is not a good idea are the people who can’t afford to do so.
JJ's opinion: Safety & Sleeping better at night is the top reason for JJ paying his home off early, especially since he works for himself and his income sources could drop at any moment which he then says would mean he would have to startup another business.
My take: It is actually safer, more profitable, and more tax efficient to NOT pay it off. Setup a brokerage account called the "PAY OFF THE HOUSE FUND" and put every dime there. Now JJ could write off more interest each year to offset his income tax, grow those funds with a conservative investment strategy, AND if his income stops for any reason he could draw off the fund to pay his mortgage and more importantly fund the next business.
One thing to note for those that have only been in the stock market for 12 years or less (or especially the last 1.5 years), those returns are not guaranteed to outperform your mortgage interest rate. Stonks don't always go up. For people with less than ultra steady jobs, you can do a lot worse than getting out of debt when times are good.
Over the life of your mortgage you will outperform your interest rate
Even if you just invest in index funds, Sp 500 avg return is 8%+ over the past 50 years. So How can that not outperform a 3% loan
@@amabdall the main problem is that most people don’t do either..they accept the mortgage as a life sentence, and waste away any remaining money..on paper it makes sense, but it’s hard to put into action.
@@amabdall Not every year is gauranteed to have a positive return is what he's saying. Paying off your mortgage is a gauranteed return on investment. There is a risk factor to this equation
@@KingJack86 Not guaranteed by an means
Its not just comparing interest rates when comparing paying mortgage and investing. Rise in equity of the property must be factored in. If you bought in 2008 the value of the property may have increased 3x, which means you save the interest and every dollar put into the principal instantly becomes worth $3 more... and it is as close to liquid as you can get because property is selling in less than a week on average.
Nice job with killing the mortgage! I agree with all of your points and next year I’ll be joining you in that No-Mortgage Club!
Aye thanks Bob! That’s huge man! It is such a great feeling!
I’ve been in this club for 23 years. I live at home with mommy and daddy
@@dirtydan6098 that's dirty Dan 🤣
Thanks. This has just gave me the extra boost I needed to pull the trigger on reducing my mortgage term
I'm following in your footsteps! I've been making extra mortgage payments for the past year and a half. But I agree, I still max out my retirement and do this in addition to, not instead of, my regular investments. I think it's best to do a little bit of everything.
Make sure the extra payment is going directly to the Principal Payment.
👍👍👍
I agree with you 100%. I paid off my 30 year mortgage in less than 8 years. Do not regret it. Meanwhile my 401k has lost 12k since January 2022. I saved tons of $$ by doing so.
Good stuff as always. Personal finance, is well, personal! We need to make the decisions that make us feel good and can create a balanced approach to our lives.
Congrats to you and your wife! I appreciate you sharing your experience. I am also trying to pay my mortgage off early for personal reasons as well. And this video helped motivate me to continue through with my plan.
Great video and interesting points. I saw on the Money Guys recently an interesting point re paying off or not. That is age. They say if you're approaching 50 then start paying off the mortgage as part of de risking. I think even part paying it is fine as well as investing, the closer to 50 you are. Sleeping soundly is very important. I'm self employed too, love from the UK 🇬🇧
With what I’ve learned over two decades investing, given enough time, solid investments have the potential to double the initial principal amount, but many investors are instead attracted to the lure of high yields in short periods of time despite the possibility of unattractive losses before even getting out. So the onus is on newbies to beware.
@Ralph Zimmerman Stock investing, when done well, is among the most effective ways to build long term wealth. I work with a fiduciary Levi Clemans, a renowned fiduciary. His guidance has given me an edge in the market. Here, reach him
Leviclemans,info
on his webpage you can look him up online, and connect with him.
diversify is key. Catch a aapl amzn or lly and will easy offset some poor choices
Hey JJ congratulations. I also paid off my mortgage last year November and the best feeling EVER!!!! Still working 9-5 and saving to invest more in the meantime. Looking to team up with real estate investors to start making real money in real estate.
The question is not what only makes mathematical sense, its about what makes you sleep better at night. Paying off mortgage most certainly makes you sleep better at night regardless of how much opportunity you might have missed out on. I have been mortgage free in the UK since age 23. Me and wife have the option to work on what ever we want, work for who ever we want. Or simply not have to work and trade time for money
Losing out on money would keep me up not a mortgage at 2.125%
I paid off my mortgage in 2019! Love being completely debt free!
It's just risk tolerance.... Pay off your mortgage and be much more secure. Put the money in something else, most likely make more money but also risk getting caught with your pants down and not being able to pay that mortgage. Small risk, but probably worth it for most people.
I was in the no mortgage club. Was amazing. Truely freedom. Could raise a baby and live off one income.
Now I have a bigger house and I kind of miss no mortgage and smaller house.
An ideal plan: Get married, work hard with double income to afford mortgage (aka leveraged borrowing) on big house. Have kids, sell big house, use capital gain to buy small house allowing stay-at-home parent(s). When kids at school, buy bigger house with mortgage (with 2x income) for more room. When kids leave, sell big home and live mortgage free in more modest home - smaller income required. Use money to help kids with buying home. (Seems obvious now - to someone who has failed to follow his own advice :) )
I was laid off before my scheduled retirement. One of the decisions I made was to buy a newer but smaller home cash and bank the residual of the 403b in an annuity account. I look at the monthly rent/payment avoided as a dividend, that is effectively tax free. Everyone pays property taxes either directly or in the rent/lease so I look at that as a wash. Both cars have been paid off for years, but I did buy a new one recently with the oldest earmarked for my son who is in basic training at the moment. Everything you said makes perfect sense to me and has worked out well for the past 10 years. By the way, market value on the house has appreciated 232% based on reported market values so I guess even my derived dividend increased right along with the market value.
P
💯🎯. People never think they will be laid off
Congratulations!! Having no mortgage is the best gift a homeowner can give themselves. Plus, should you decide to move, you have all that capital to put down. 👏🏾👏🏾👏🏾. I love it!!
people who say they'd rather invest than pay off mortgage because of the math aren't doing either one of those things. paying off your mortgage early makes everything a million times less stressful and it's worth it for that alone.
I'm subscribing right now and forever.
Never found any person expressing himself as good as you do. Clear as flowing water. And I'm Spanish so Im pretty sure of that. Thanks a lot for your knowledge and sharing it with us.
I couldn’t imagine getting a mortgage on a paid off house and then throwing that money into the stock market. That scenario is IDENTICAL to not paying off your mortgage to invest.
Excellent point
Yes the mortgage is the cheapest debt you have and you should 100% pay off other debt first. But the two largest signifiers of later life financial freedom is no debt and owning your own home. You can’t realistically retire these days with a mortgage still hanging over your head.
I like your way of thinking.... I completely agree with what you did...😉👍💰💰💰
In my experience, those people that offer advice about investing and finance, and have all the answers about paying your mortgage, stocks, savings, retirement, etc. never have any money of their own. They are dead broke and live paycheck to paycheck, but somehow still have all the answers about finance. I prefer to listen to someone such as you. And me for that matter. I have no bills and a healthy retirement account. Not rich by any measure, but I could stop working today and live comfortably the rest of my life.
👍👍👍👍 Absolutely
Paying off the mortgage in 2017 is the best thing I've ever done. Mortgage paid box ticked more money left for investing. 🚀
Good advice all around. I wish young people would understand its NOT either/or. Yeah, invest but its ok to also pay off mortgage early if you can. Also, no one, and i mean no one, ever said “ I regret paying off my mortgage…”
Found this video helpful!!! I totally agree with you as far as paying your mortgage off early.
I am recently a new home owner and my goal is to pay off my mortgage early as well.
So, have you been making extra payments?
We paid off our mortgage early and yes it gives me peace of mind. One less large payment each month and you can take that money and put it somewhere else
Oh man! You did the right thing! Zero debt is always the best way to live! 👍👍👍🙏🏻🙏🏻
Totally agree, no market return can compare to the independence and peace of mind paying off mortgage can give you, living stress free can never be bad, but yes also agree that keep investing as well on the side :)
I feel like only a person who's never had to worry about how they're going to pay their bills would have trouble understanding the appeal of paying off the biggest bill most people ever have.
Generally it isn’t about “paying the bills.” Most people stay at a job they hate because they have a mortgage and a $500 car payment, granted yes that’s poor financial management if it’s not budgeted but paying off your mortgage or even car allows you to quit that job you hate and not have high expectations of another job.
I’m comfortable enough to quit my job, find a “starter” job until I find another job that needs my needs.
Long story short paying off the mortgage allows freedom to do whatever you want
@@Lobo59470 i definitely understand that. Also I understand that everyone isn't strapped trying to figure out how to get by and certainly shouldn't be talking about investing if they're in that position. My point is that even though I don't have to worry about that today, I know what it's like and knowing i wouldn't have to ever think about it at all would be a load off my shoulders, and therefore I would have the freedom to do the things I would like to do with less worry.
Just like any other debt, getting that out of the way means peace of mind and yes, freedom. For a person to not comprehend that is very close minded.
Not necessarily, it has to do with whether you can control your emotions and work the math instead of just feeling better now but wasting an opportunity to be better off 10 years down the road. And that's the difference between low income and middle class people and rich ones
I appreciate your feedback on this. I'm currently in the position doubting on which next step should I take to get closer to FI: invest in a second rental property or use the savings to start paying off my mortgage. What makes it a tough decision for me is because knowing how compound interest works, the sooner you invest, more it will compound.
But right now I'm more towards paying off the mortgage, as you said as well as other comments, living without a mortgage gives you that "special" feeling. And also, I'm starting to believe that it's actually the closest path to reach FI. Cheers from Barcelona, Spain!
Peace of mind of not having that monthly mortgage payment is good for me..Stock Market can be up or down and you take a chance..Great information brother..Keep Crushing It!! Stay HUMBLE, Stay HUNGRY, Stay FOCUSED...~The Jarhead Entrepreneur
No need to pay the entire mortgage off unless you are in/nearing retirement. You are better off investing that money. 9-12 months of emergency savings in a liquid account should be more than enough to cover any job loss or other financial emergency while your invested money grows. My two cents is free.
There’s nothing wrong with paying off your mortgage early.
If you do the calculations the amount of money you put into lump sums and the amount of interest you save is HUGE. Lumposums in the beginning is important because youre paying all interest at first but lump sums go into principal.
Great achievement JJ and a little extra money has nothing on the piece of mind you have created for you and your family