Should You Pay Off Your Mortgage Early or Invest? | Financial Advisor Explains

[@humphrey]

What's your current mortgage rate and are you considering paying off your mortgage early or investing? PS: Be aware of the spam/scam comments in the below comment section. I just purged a bunch, but there will inevitably be more that pop up. If theres ever a comment with a lot of likes but they're referring you to some random person's name and promises of returns...its a scam.

[@anderspedersen6750]

4.25%, been paying $100/month extra since day one. Already investing close to 50% of take home pay. Accelerating payoff next year to about 2k extra per month.

[@darksideofthemoon19]

I have 3.12% townhome and have 60% going to HYSA. I want to buy single family home in 3yrs so investing seems risky. I just put about 1k in ETFs about 1-3months. I already Max out Roth, 401k contributions

[@jd-py5nm]

4.1% paying extra 100 or so monthly

[@jeremiahcampbell2]

2.25% and NEVER will I pay this house off!! Keeping this thing for the rest of my life. Refinanced it one year into the pandemic. Located in northern Virginia, about 45 from D.C., I bought a 3k sqft single family house for just south of $500k. Fun fact - while listening to the amortization portion of the video, I'm remembering that my interest rate was so low, and the loan amount was pretty low too that the principle portion of my payments were larger in my first month than my interest portion. I was sooooo excited to see that.

[@hawkeye681]

@@jeremiahcampbell2 dude, we must be neighbors. Same here with the house 45 mins west of DC, 4500 sq ft home bought during the 08' meltdown at a steal of a price. Never letting this thing go, value has doubled since I purchased.

[@Hannahbenowitz]

Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market

[@HildaBennet]

The stock market is no different, to maintain profit you need to have some in-depth knowledge on the market. I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.

[@FinnBraylon]

In my opinion, it was much easier investing back in the 80s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.

[@bartlyAD]

My partner’s been considering going the same route, could you share more info please on the advisor that guides you

[@FinnBraylon]

She’s Diana Casteel Lynch, and do your own research. She has portfolio management down to a science

[@bartlyAD]

Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.

[@Raniyanhunter]

I just turned 44 and awfully late to investing with barely any portfolio except my 401k, I have a decent amount of cash saved up and with inflation currently soaring AGAIN, I’m getting worried about retirement, my intention is to retire at 55. How best do I maximize my savings of over $400k

[@garnold-l5p]

Retirement is now more difficult than it was in the past. it's all about balancing your risk tolerance with your long-term goals. Maybe consider speaking to an advisor to help in diversifying your portfolio to spread out the risk.

[@Anessa-gibson]

Many people often underestimate the effectiveness of a financial adviser in planning for retirement. Over the past 5 years, my FA has consistently restructured and diversified my portfolio and expenses, resulting in over $1 million in gains. While it might not seem like a huge amount, retirement now feels within reach.

[@Mlanderos-t9e]

Hello, I'm interested in trying this out. Who is your FA, I'm gasping for breath. Have been doing things myself but it's clearly not working

[@Anessa-gibson]

Teresa L. Athas is her name. She is regarded as a genius in her area and works for Empower Financial Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets.

[@Mlanderos-t9e]

Thanks for the information!! She appears to be well-knowledgeable and accredited. I ran a Google search on her name and came across her website, thanks for sharing.

[@jeromesand]

From paying for day care and college, to managing mortgage payments. I'm approaching retirement yet inflation is getting worse and recession is biting harder by the day. How can I generate more income to retire with at least $3m for long term care? I have about 750k in savings.

[@JacobsErick-u8r]

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. investors like you should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder.

[@hoosier-daddy-wv5gi]

Accurate asset allocation is crucial, I used hedging strategies to allocate part of my portfOlio to defensive assets for market downturns. Expert guidance is vital for achieving this. This approach has helped me stay financially secure for over five years, yielding nearly $1 million in returns on investments.

[@LUCIASMITH-d1z]

this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation

[@hoosier-daddy-wv5gi]

Her name is “Melissa Terri Swayne” can't divulge much. Most likely, the internet should have her basic info, you can research if you like

[@amoreauMike-t6z]

I just Googled her name and her website came up right away. It looks interesting so far. I'm going to send a mail to her and let you know how it goes.Thanks for sharing truly!

[@fabianmoss124]

Mutual funds or Index funds which is a better buy right now? just got my lump sum inheritance and would love to put my money to work, so i can earn in dividends, i'm also looking at paying mortgage where rates are not so high.

[@RoseGuerra7862]

Index funds are more valuable than Mutual funds as of now, though a few people perceive it to be as a result of the pending correction.

[@martinheaway]

I’m currently working towards financial freedom with a focus on dividends & growth investing. Since 2014, I’ve built a portfolio made up of 30% Mutual funds , 25% Index funds, 15% STP and over 30% in digital assets, thanks to my CFA. This strategy has helped me earn $49,000 a year in dividends. Back in 2014, I only earned $21 in dividends.

[@JaneClark7861]

Oh I've heard similar things about hiring an advisor. It's hard to choose one that's very good though. Could you make some useful recommendations?

[@martinheaway]

I've experimented with a few over the past years, but I've stuck with ‘’Amy Desiree Irish ” and her performance has been consistently impressive. She’s quite known in her field, look her up.

[@JaneClark7861]

Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.

[@MarieVincente87]

I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying it’s ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.

[@SoledadUnai]

Yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge.

[@GrandtHudson1]

It all depends on how long you're willing to hold for, stocks might likely tank further, but making serious gains in this downtrend wouldn't be a problem if you're a pro.Reason I decided to work closely with an brokerage-adviser ever since the market got really tensed and the pressure became so much(I should be retiring in 17months) so I've had an brokerage-adviser guide me through the chaos, its been 9months and counting and I've made approx. 650K net from all of my holdings

[@NandaHernandez-h9r]

How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?

[@GrandtHudson1]

I work with Elisse Laparche Ewing as my fiduciary advisor. Simply look up the name. You would discover the information you needed to schedule an appointment.

[@StalinUndav]

Thank you for the lead. I searched her up, and I have sent her a message. I hope she gets back to me soon.

[@nickmcdonarld]

I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Brooke Grace Miller for helping me achieve this

[@johneliss]

I'm surprised that you just mentioned and recommended Brooke Miller, I met her at a conference in 2018 and we have been working together ever since.

[@ClarenceFerland]

The very first time we tried, we invested $1000 and after a week, we received $5500. That really helped us a lot to pay up our bills.

[@anatolyivan]

She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states

[@sarapalin]

I'm new at this, please how can I reach her?

[@HighlightsSerieATIM]

I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills

[@PauleAraiza]

Time is the most critical factor in investment growth. The longer you wait, the significantly less you’ll have down the road. If you're aiming to retire by 60, it's not financially ideal to prioritize paying off your mortgage early before the age of 45.

[@Dollrnri]

We might be more concerned about paying off our mortgage if it were larger (or if our jobs weren't as secure), but right now, investing offers a better return. Bloomberg and other finance media have been documenting stories of people making over $250k in a couple months.

[@AddilynTuffin]

Keeping a 3% mortgage and investing cash in the market, growing at 10-20%, is basic math. Look up dividend aristocrats, companies with a 25+ year dividend track record. Also, its advisable you work with a CFA for a well-structured portfolio.

[@AGNESCHANG-u9h]

@@AddilynTuffin Agreed. Through working with a CFA, I've grown a well-diversified portfolio to $2 million, experiencing exponential growth since I began. Success in stocks requires not just money but also knowledge, persistence, and resilience.

[@BBmbr89]

Well it seems like a lot of your interest is riding on your source, I could really get well accustomed to your viewpoint, get me involved.

[@AGNESCHANG-u9h]

Jennifer Leigh Hickman is the licensed CFA I use and i'm just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.

[@BettinaBischof]

With around $120k invested in Palantir stocks, any suggestions for additional stocks to diversify across various markets? Looking for a well-rounded portfolio that balances risk aversion with returns meeting yearly inflation concerns.

[@FostersCapones]

Prioritize two goals: strategically buy stocks to limit losses and maximize gains, and be prepared to capitalize on market shifts. Consult a financial advisor or professional for personalized guidance.

[@JacobReynolds-t7v]

@@FostersCapones I agree with you. As an early investor in NVDA, AVGO, ANSS, and LRCX, my financial advisor's advice was incredibly helpful. Over the past seven years, she has helped me find stocks that have performed 10x multiple times. With her help, I've grown my portfolio to over a million dollars.

[@BettinaBischof]

@@JacobReynolds-t7v Please can you leave the info of your investment advisor here? I’m in dire need of one.

[@JacobReynolds-t7v]

@@BettinaBischof The beauty of MARGARET MOLLI ALVEY approach is her dual focus: while aggressively pursuing profit opportunities, she's equally tenacious about shielding investors from potential pitfalls. It's a balance few can achieve.

[@BettinaBischof]

@@JacobReynolds-t7v I will give this a look, thanks a bunch for sharing.

[@TheodoreMateo3h]

Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.

[@CharlesLiamh1p]

People believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.

[@CharlotteNoah3]

Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.

[@HenryLucask5l]

I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.!!

[@CharlotteNoah3]

My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..

[@HenryLucask5l]

I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.

[@DiandraBuckovitch]

I currently have a $280k stock portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and QQQ overlap too much to make sense holding both?

[@SujayPera]

You might also follow a lots stocks across other industries. I'll advise you to work with a financial advisor who can assist you decide when is the best to buy and sell the shares or ETFs you want to acquire since you don't have to act on every forecast.

[@MoyaWassell]

No doubt, having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit 100% rise from early last year. I and my CFP are working on a 7 figure ballpark goaL.

[@GoyanHomman]

that's a double up in two years! seeing a lot of news on the rally, investors will make tons of profit with the right picks. would you mind disclosing info of this person guiding you please? my problem is I do not trust my guts in today's mkt

[@MoyaWassell]

My CFA *Julianne Iwersen Niemann* a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..

[@GoyanHomman]

Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her..

[@appleztooranges]

Paid off my house in 2019 at 31 years old. Debt free ever since. Zero stress anymore

[@chelo3510]

This is what people don’t understand. Investing for me is math vs emotion. Being debt free gives me peace of mind even though I know my money is better off investing. Being debt free allows me to have the “fk it” attitude

[@Kujakuseki01]

lol. Paying off a home loan (good debt) is hilariously bad financial management. Why would you be stressed about a mortgage?

[@appleztooranges]

@@Kujakuseki01 you have to pay off it every single month! I hated that burden. Now I can save a ton more. Plus you have unexpected emergencies such as a roof leaking, car breaking, pinhole leaks in the pipes etc. was living paycheck to paycheck with a house mortgage. No longer!

[@T1IVl]

I agree. Just bought my house and have plans to pay it off early. The freedom it provides is worth not investing imo.

[@jml9550]

I paid off my $328k 2.625% 15 years loan in 25 months. Started in October 2020 last payment was November 2022. Now totally debt free with 3 paid off rentals. Love having no debt for the last 1.5 years.

[@JaneBlac-]

This is my fifth year after retirement. I’e been following the 4% rule thing I saw on a youTube channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get really worried.

[@MemoryKasu]

Not a lot of people are able to save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.

[@GersderaNioer]

This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800k

[@HersderaNilers]

Mind if I ask you to recommend this particular coach you using their service?

[@GersderaNioer]

My CFA ’Stacy Lynn Staples’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

[@Dave_East]

Just ran an online search on her name and came across her websiite; pretty well educated. thank you for sharing.

[@cassandrajosettehall]

We are paying down our mortgage aggressively (while still investing) because I was in high school during the '08 turmoil and my dad lost his job. My parents were extremely stressed about losing their house, and I never want to feel that way. For everyone saying you can draw from your investments if you lose your job, you could potentially take a huge hit if that happened to be in a down market. Ultimately, this is a personal decision but for me, I prefer the peace of mind

[@jmunt]

As with everything, it depends on other factors too. My peace of mind comes from the fact that I bought a house maybe 60% the price I could technically afford with my salary at the time, and I always keep several months of expenses in emergency savings accounts. So I’m very comfortable putting my excess into volatile investment accounts, because the chances of me touching it are very very low, and the worst possible case might require using a tiny fraction of it in a down market. It shouldn’t be your only savings, but it gives peace of mind that you have that backup in a worst case scenario if normal savings aren’t enough. But that only works if you buy a house well within your budget, which apparently few people do (the bank I got my loan from was shocked I wasn’t trying to buy a more expensive house at my income, and that made me realize most people are spreading themselves too thin)

[@chiefeng4451]

100% of foreclosures occur on those “with” a mortgage.

[@jameswood9772]

Creating wealth entails establishing positive routines, I had only $78k to my name at 42 when I first woke up to this reality. I chose the stock market as a medium of growth, got an excellent financial advisor, Financial management is a vital subject that many avoid, often leading to future regrets.

[@johnlennon232]

Indeed, currently I'm managing my finances wisely and being frugal. In the last 19 months, my investments grew by 43%, adding over $500K in profits. However, I've had losses in the past month, making me anxious. I'm unsure whether to sell everything or wait.

[@alexyoung3126]

No doubt, having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit 100% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q3 2024.

[@chris-pj7rk]

This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation

[@alexyoung3126]

Her name is 'Amy Desiree Irish’. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@chris-pj7rk]

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

[@Baldwin321]

As an investing enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?

[@Charles43217]

the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.

[@Christian67337]

I agree, having a brokerage advisor for investing is genius! Amidst the financial crisis in 2008, I was really having investing nightmare prior touching base with a advisor. In a nutshell, i've accrued over $2m with the help of my advisor from an initial $350k investment.

[@Annie56427]

Please can you leave the info of your lnvestment advsor here? I’m in dire need for one

[@Christian67337]

Aileen Gertrude Tippy' is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.

[@Annie56427]

Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.

[@zacksmith9654]

Max out 401K match and Roth IRA first. All remaining goes to mortgage principal. That’s my strategy with a 6% rate

[@humphrey]

Lets go!

[@CurieBohr]

6% rate? 100% would go towards that.

[@EvanKnightIsGood]

@@CurieBohr You would still want to max out your 401k match as you are getting a 100% return up to the match or possibly 50% depending on the plan.

[@blanketwodahs6741]

IMO you should max out beyond the match. the tax savings outpace the interest. Once you fully fund any tax deferred accounts and still have money leftover, then pay down the mortgage.

[@michaelswami]

@@blanketwodahs6741so how does paying ordinary income tax at future (unknown) tax rates for unmatched 401K investments beat the other strategy. I’m genuinely curious and not trolling.

[@MagarethWoods]

I'm so happy I made productive decisions about my finances that changed forever. I'm a single mother living in Vancouver Canada, bought my first house in October and hoping to retire soon if things keep going smoothly for me.

[@NatalieDormer-or4jj]

Wow that's awesome 👌

[@NatalieDormer-or4jj]

Am looking for something to venture into on a short term basis, I really need to create an alternate source of income, what do you think I should be buying?

[@MagarethWoods]

Cryptocurrency/stock investment, but you will need a professional guide on that.

[@MagarethWoods]

Facebook 👇

[@MagarethWoods]

Evelyn C. Sanders

[@somehandle215]

I’m paying extra on my 2.99% mortgage to achieve my goal of no mortgage by the time my kid graduates high school. It’s fun to track progress on the amortization schedule.

[@Thewealthwarehousepodcast]

why is the goal to have no mortgage at that time? what advantage would that give you?

[@ljshoreslokal]

@@Thewealthwarehousepodcast Seems self explanatory but IMO it's a financial goal, no mortgage is a great thing, your freed up money now goes to other investments or savings. Making the banks rich is not my goal.

[@Thewealthwarehousepodcast]

@ljshoreslokal we definitely don't have the goal of making banks rich either. We don't do business with banks. Our view is that while you were aying off the house faster, where could that money have been going to work for you instead of being tied up in the walls of the house. To each their own though.

[@DorathyJoy]

My advice to new investors: Buy good companies stocks and hold them as long as they are good companies. Just do this and ignore the forecasts and market views which are at best entertaining but completely useless.

[@SandraDave.]

The key to big returns is not big moving stocks. It's managing risk in relationship to reward. Having the correct size on and turning your edge as many times as necessary to reach your goal. That holds true from long term investing to day trading.

[@RaymondKeen.]

I totally agree; I am 66 years old, recently retired, with approximately $1.2 million in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, I didn't do all this alone, but with the help of a financial advisor. Having one is currently the best way to trade in the stock market, especially for people nearing retirement.

[@BellamyGriffin19]

Is there any chance you could recommend who you work with? I've wanted to make this switch for a very long time now, but I've been very hesitant about. I'll appreciate any recommendation.

[@RaymondKeen.]

Finding financial advisors like Sophia Maurine Lanting who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.

[@TinaJames222]

Thanks a lot for this recommendation. I just looked her up on google, and I have sent her an email. I hope she gets back to me soon.

[@fpiskulich]

I paid off my mortgage, best decision I ever did.

[@MiloOblong]

Amen

[@nicodimus2222]

The feeling of having no monthly rent or mortgage payment is AMAZING. It changes your entire outlook. That should be what retired life feels like.

[@poonekar]

I went in the opposite direction. In 2018 I could have paid off my mortgage on the primary but instead tapped 7 figures of the equity and bought 2 oceanfront STRs in Hawaii. Now those properties pay for themselves and the interest portion of my primary. But also the equity in those properties has grown to almost as much as I tapped in 2018. My guess is that by the time I turn 55yo, those properties will be able to pay for my living expenses too and I can retire. Maybe your path feels more amazing, I wouldn’t know… but mine feels pretty great too.

[@Spivonious]

@@poonekar Oof, I'd be way to scared to buy rental properties with a second mortgage (i.e. home equity loan). What if there are major issues? What if your tenants trash the place? What if the rental market crashes and now you can't charge enough to make the loan payments?

[@poonekar]

@@Spivonious I didn’t use and wouldn’t recommend using home equity loan for buying properties. I did a cash out refi and it made sense also because I was getting a better rate, which may not be the case for most properties today.

[@nope7548]

My house is paid off… but my property taxes and my home owners insurance pretty much a mortgage .. you never really pay anything off 🥴

[@nicodimus2222]

@@nope7548 Yeah, property tax and insurance are part of the joy of home ownership. Definitely not for everybody. If you're just a single guy or gal, renting an apartment or small house makes a lot more sense most of the time. Low-maintenance and relatively low-cost.

[@jeffjets00]

I have a 2.125% rate on a 15 year with 12 years left on it. I am investing the extra right now. The returns will be better in the long.

[@Optimus-Prime-Rib]

Better off pumping that extra cash into VOO, FXAIX (s&p 500 etf’s) than paying off a mortgage with such a low interest rate

[@DefenestrateYourself]

@@Optimus-Prime-Ribthat’s what he said lol

[@johnmabbett6586]

no doubt

[@bellmattwebb]

With that low of a rate, it'd be pretty silly to pay it down early unless you are just sitting on a few extra million.

[@benitabussell5053]

I’ve been saving for a long time instead of investing, and right now I only have about $516k. I'm not sure how to make it grow, considering all the inflation, into something substantial that I might use for retirement. I’m just here for ideas

[@RickWatson-xu6gw]

50% stock, 20% Bitcoin, 20% high yield CD/ bonds, 10% cash/ fully liquid stable asset

[@A_francis]

At a point like this, it's best recommended you seek the services of an advisor, as this allows you make smarter investing decisions.

[@ScottStraw]

I just use KZbin for research purposes, I run all my major investment through an investment adviser, the market is just too unstable to handle things on your own. I have consistently restructure and diversify my portfolio/expenses and I’ve made over $3million in gains in close to a decade of having one

[@RobbStonee]

I've been considering this but haven't been proactive. Can you recommend your advisor? Could really use some assistance.

[@ScottStraw]

*Marissa Lynn Babula* is the licensed advisor I use. Just search the name. You’d find her webpage and necessary details to work with to set up an appointment.

[@DanielM-kl3bv]

I am focusing my mortgage because of the peace of mind it offers.

[@Jack_Clemans]

As a CFP I LOVED to see you bring into this conversation the effect the amortization schedule has on the interest savings for paying off a home early. No one ever talks about that and your example laid it out very clearly. Keep up the great work!

[@humphrey]

Glad it was helpful! Thanks Jack :)

[@blanketwodahs6741]

It should have been clarified that the high interest up front isn't some choice by the bank, it is the only way the math works with compound interest. too many people have this perception that the high interest in the payment is the bank gouging them, or as Humphrey said, "the bank needs to get paid first". that is not accurate. the math actually benefits the borrower by allowing the interest to drop as more principal is paid in.

[@DiscoFang]

As a CFP maybe you should have spotted his fundamental error when comparing extra payments on the mortgage ($500 per month) vs investing the $500 instead. The investment calculation was for 25 years whereas the mortgage payments were only 16 years.

[@DiscoFang]

@@blanketwodahs6741 Exactly right. There is no magic to paying off a loan early, late or with extra payments. Mortgages are simply the outstanding daily balance.

[@mav1877]

I agree. The interest rate you have on your mortgage will largely determine if you should pay it off early. However since I work in tech field, the job isn't that stable, so I decided to pay my mortgage off early to gain "piece of mind" after I was able to accumulate enough in savings and retirement that I feel comfortable with

[@irisflower9030]

I say do a bit of both. I’ve been maxing out my 401 for several years now while also working towards paying off our house. We paid off our 375K loan in 12 years with a 3% rate. Now I’m dumping a bunch of cash into a brokerage account, beefed up kids’ college investment fund, and also maxing out HSA (8,200 in 2024) and investing that too (I’ve been doing that for years too). I’m 42 and hubby is 45 so we still have plenty of years until retirement, although we’re shooting to retire within the next 15 years or so. We don’t own expensive cars, toys, second homes, or designer bags. We do travel though, that’s about the only thing I’ll go all out for. But we keep it to pretty much one big family trip per year.

[@brianbybee5716]

This approach makes total sense to me too but I never hear anyone mention in these videos. I like to think “don’t put all your eggs in one basket”… almost like diversifying

[@zq7807]

Good yet simple to follow advice

[@JasonBay-RealEstateInvesting]

Paid off my mortgage early a few years back and have not regretted it once. Still feels amazing!

[@jaredfrazier2216]

If you don't a mind can I get more info..like age you did it. Price. Interest rate. City. Stuff like that. I'm getting pretty aggressive on my extra principal payments but still investing

[@dainius9189]

Same here. Paid it off at 30 year old, few years back and not regretting at all. And after paying off, interest rates went so high I can imagine what monthly payments i would have had. Maybe its considered not as an investment but I saved so much :D

[@JasonBay-RealEstateInvesting]

@@jaredfrazier2216 I’ll make a video on this topic

[@JeffFindlay]

Paid my house off in about 9.5 years dumping everything i could and renting out rooms for half of those years. Bought it FHA with 3% down with a 5.25% and a PMI, then refied to a 15 yr after about 2 years to a conventional at 4.35%. Opened my 1st 401k/stock account the next year and now trying to catch up there. Very glad i did it that way, the peace of mind is priceless and the flexibility to not need any other forms of debt will continue to make my dollars efficient.

[@joy2come119]

I feel like the peace of mind you have with a paid off mortgage is just so exhilarating. This is my plan then just tackle my retirement accounts full force when I no longer have that major debt. The interest alone makes me rather pay it off to avoid all that money you have to pay back over time.

[@whenifeellow]

@@JeffFindlay nice! how old were you when you opened your 1st 401K/stock account?

[@JeffFindlay]

@@whenifeellow about 36-37

[@richardnewell8478]

A well-balanced video. Mortgages can involve paying a lot of interest, but if your mortgage is 5% or less you're likely to do better long-term in the stock market. I'm retired but with a 2.625% interest rate I have not bothered paying off my mortgage, in four years the payments will end.

[@Adam-mw1xm]

I see a lot of comments for paying off your mortgage for "peace of mind" in here. One thing to consider here is that when you make payments towards your mortgage that extra money is now stuck in that asset. By investing in stocks, cash, etc. you will have that money and any returns on it still available for use in case of an emergency or even an opportunity. There is an opportunity cost with paying your mortgage early that you are sacrificing for "peace of mind". If you can earn a better return putting your money elsewhere besides into your mortgage, I don't think the choice should be that close.

[@mandypdx]

I personally want to free up $3500/mo before i retire

[@jackwedel9495]

@@mandypdxwell yeah you should pay it off before you retire for sure but maybe not early in your 40s

[@Fakepower1]

That analysis neglects the value appreciation of the property itself, while admittedly slower to do, is available for sell. The last home I sold in 2020 significantly outperformed the market in the 5 years I owned it.

[@nickstark8479]

@@mandypdx Think of it this way... You could have your property paid off, or you could have the same value invested in Dividend Kings, paying out the same amount to cover your mortgage bill, while also growing principal and yearly dividend payouts.

[@DEE-o4v]

Have you ever been laid off AND had a house payment? I think not.

[@jamesbrumfield1193]

Paid off my mortgage in 6.5 years(interest rate was 5% in 2016, refinanced to 2.7%, and paid off in 2022) while maxing out my 401k for the last 15 years. So, my "investing" came in that form with the employer-matching contribution. Started my brokerage account last year and been daily cost averaging and plan to keep at it until I retire. Paying the bank more interest than I need to is something that doesn't sit right with me. Could I have made more gains investing outside of my 401k during that 6.5 year period? Maybe. For me, I didn't have the tolerance, discipline, or knowledge to be an effective investor at that time. Not being indebted to ANYONE is peace of mind and something I hold in high regard. Love your page @humphrey.

[@economicdevelopmentplannin8715]

Nice work. Get money buy assets Everything else works out ❤

[@frazhier]

saving this video because i wanna help my mother pay off our mortgage. thank you sir Humphrey!!

[@veronicasmemories]

I had this conversation with some friends out at a bar like 2 years ago, and I'm pretty sure it saved me thousands in the long run.

[@LindseyHarvell-vc4ez]

These concepts are best understood under fire. Like being laid off and you’re now only living off your spouses salary…. I GUARANTEE you would wish your mortgage was lower or paid off.

[@ahsin.shabbir]

Exactly. Plan for the worst case and you can't go wrong.

[@LAapplianceguy]

2.5% 15yr with 12yrs left to payoff. Everything extra (about 10%) is going into brokerage account. Great video

[@chadarmstrong3381]

Love this video! One important factor to keep in mind when paying off your mortgage early, freed up cash flow! That payment can go back and accelerate any other debt or investment.

[@Nicole-yy1kn]

That’s so incorrect 😂

[@claycampbell3451]

This info is great but I wanted to point out there’s discrepancy in the time lines. The $500 towards the mortgage vs investing should only be over 17 years since the loan will be paid off early. So it’s only $215k invested not the $473k shown

[@hiyoryan3901]

That’s what I thought!

[@linussamuelsson2927]

The Value of the house is not included as well. After those years hopefuly the house as increased in value.

[@ElverGalarga88]

I got 6% interest, I’m definitely throwing all extra money at the principal

[@Nicole-yy1kn]

Why? Bad idea

[@BrassTaxFinance]

I have has been aggressively paying down our 5.5% I/Y home loan. As a finance guy I ran the numbers and I know we would be better off investing, but this decision was bases on quality of life. Once we pay off our house effectively we just received a 30k pre-tax bonus. For a family that will likely bring in 150k - 200k in 7 years from now that will be life changing.

[@Pelham04]

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.

[@Lourd-Bab]

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

[@Pelham04]

@@Lourd-Bab 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.

[@Lourd-Bab]

@@Pelham04 Oh please I’d love that. Thanks!.

[@Pelham04]

@@Lourd-Bab Clementina Abate Russo is her name.

[@Pelham04]

Lookup with her name on the webpage.

[@HighwaytoHobbs]

Wife and I maxed out Roth IRA, I have government pension invested automatically, and she is putting in more than the match in her 401K. That being said, we are paying almost everything extra to pay off our mortgage 2.75% rate). I know that is financially "stupid" but the piece of mind being 100% debt free is priceless. Once the mortgage is paid off next year, we will max out her 401K contribution limit. We are mid-30s.

[@humphrey]

peace of mind is +1 all the time!

[@arzdiamondbacks]

I'm on track to retire at age 35 next year precisely because I invested my extra cash instead of paying off my mortgage. If I had done the latter, my stock portfolio would well be less than half of what it is today.

[@hudsonmilbank]

There are a ton of these types of videos out there, but this explanation is by far the most thorough and well-reasoned.

[@drevan1138]

I had a windfall during Covid and paid off my mortgage that was at 3%. 6 months ago I had a big real estate opportunity arise, but had to take out a loan again in order to capitalize on it (couldn't take it out directly on the property for "reasons"), but at 6.75%. You can't predict what is going to happen, but I really, really regret paying off the low-interest mortgage now. Had I invested the payoff amount, I would have been so far ahead now and with a very reasonable mortgage instead of my high-interest one now...

[@drevan1138]

Currently, I'm saving 25% of my gross, since I'm also behind overall on retirement savings, and any extra will go towards the mortgage.

[@albaniaball897]

My rate is 2.75% and i have 26.5 years left on my mortgage. Definitely investing

[@La_sagne]

below 3% id probably do the same

[@La_sagne]

probably below 3.5 to be fair

[@jpnguyen11]

Ayyyy we have the same rate and almost same time left 😂 TWINSIES

[@albaniaball897]

@@jpnguyen11 So you got yours around December 2020? Good times for mortgages.

[@erictcarrollcarroll1108]

That is an incredibly great interest rate, but 100% of foreclosures occur on a home with a mortgage.

[@FaithAndrada-xo9ou]

Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and just craving a little action. Investing is 5% intellect and 95% temperament.

[@BrewerVera]

Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.

[@jameswood9772]

It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to over $750k.

[@chris-pj7rk]

Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.

[@jameswood9772]

Her name is 'Amy Desiree Irish’. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@chris-pj7rk]

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

[@kw5371]

This is always assuming "nothing changes". In 10 years, you could possibly lose your job . And the biggest expense people have is the house. You pay it off you wont' have to worry about trying to find the same job that pays as well. Happened to me, and paying off my house was the best thing I did.

[@jmunt]

If you put that money towards investments that you can quickly liquidate though, those investments can turn around and be used to pay your bills while unemployed. The principle of this video is still better for someone with a low home interest rate, just make sure to have an emergency savings large enough to cover until you can liquidate your investments.

[@calvinbarriga195]

the freedom to do something else is huge.

[@gdelacruzjr]

​@@jmuntimagine being forced to liquidate a long-term investment in a down market. Seems like the losses can easily compound.

[@GuillermoSanchez-Apex]

I paid off my mortgage a couple of years ago. One of the best decisions I've made.

[@outbackandabout]

thats great... but don't you ever get enticed to buy a bigger, better, shinier house?

[@GuillermoSanchez-Apex]

@@outbackandabout yes, I always want more. But I decided to buy 10 properties cash before upgrading. That way it's more fun and the house won't own me

[@outbackandabout]

@GuillermoSanchez-Apex hmm, that's a great insight. Thanks for replying

[@DiscoFang]

You made a fundamental and glaring mistake in your calcs for paying down the mortgage by $500 per month VS. Investing $500 per month. (7:41) You compared investing for 25 years BUT paying extra on the mortgage ended up only being for 16 years. There's the difference in totals NOT anything to do with "compounding" in the investments. Compounding also occurs in paying down the mortgage, in that any outstanding amount accrues interest each year.

[@ethanisen5039]

Agree. That’s what I thought. This video needs to be revised.😅

[@freakymeltdown1]

😮😮 observant ! I had to re watch

[@TshepoRoss-i5d]

Do a bit of both. I'm focusing on my mortgage course of the peace and mind it comes with.

[@tcgtpl]

The peace of mind crowd favoring paying off the house early vs investing more neglects one incredibly important factor. If you do get laid off, or wind up in some emergency where you need to have access to a lot of cash quick (after you’ve exhausted your emergency fund first) it is far easier to sell shares of your investments piecemeal than to sell a house. Besides, you can’t sell off only a portion of your house either, like who’s going to buy a single bedroom or closet? I guess you could try a HELOC but that’s still borrowing money.

[@kw5371]

if you paid it off, you can survive on mcdonalds wages and possibly still save a bit until something better comes along.

[@juniorhornet1323]

How would you have felt having to sell your portfolio in 2020?

[@dwightschrute7342]

Chances are if you lost your job it’s because of layoffs which means the stock market is down so you’d still have to make your mortgage payments in a down market selling for a loss to cover your bills.

[@sociopathmercenary]

With a 2.35% fixed 30 year mortgage taken in 2021, you'll have to fight me to get an extra dollar towards my principal. We have no debt other than the mortgage and that low interest rate isn't even keeping up with inflation so the money is essentially free. Over the past 3 years, our home has risen 45% in value and I'm consistently getting about 10% in returns from my investments. Plenty of peace of mind. 😊

[@jakealberda4487]

I crunched all of my numbers in depth last night, actually. In my case, paying off early will cost me about 300k over the next 22 years compared to investing the same amount.

[@gdelacruzjr]

😅 that means you have to keep working for that long, tho for the monthly payments. I'd rather relax

[@greggpurviance7252]

Maybe

[@chiplangowski3298]

It would be interesting to see your math on this. Other people have posted similar responses to articles like this and included their numbers - asking people to do their own calculations if they did not believe them. In all cases, the original numbers posted were hopelessly optimistic and the gains through investing (if any) were a fraction of what was originally posted.

[@clairemckayhart1109]

If we would've had a mortgage when COVID hit, we would've been in a world of hurt. So thankful we went the 'Peace of Mind' choice. These surprises have hit us 3 times in 3 decades of marriage. Pay off all debt, best decision ever. You never know what's around the corner. Love your videos! Thanks so much from Texas.

[@raknoknak]

This is a no brainer. Returns from the market = uncertain. Interest on loan = certain. Pay off mortgage!

[@ljshoreslokal]

I agree, the money you save on mortgage interest is certain, market is super high right now and returns may be more risky

[@crazyeyes1533]

exactly my thoughts as well!!!!

[@CAG83]

That's not necessarily the case. Long term, returns from the S&P 500 average about 10% the last 100 years. This includes every major recession, including the depression. In many cases, paying off the mortgage probably makes more sense. But long-term, investing in the S&P 500 can be the better choice. Especially when you've got a super low mortgage rate, or you've already paid off half your mortgage. Which he does discuss in the video.

[@raknoknak]

@@CAG83 you literally had to use the c word "long term" returns... which means in the short term even SP500 can lose money.

[@CAG83]

@@raknoknak you do realize a mortgage is typically long-term as well, right? Also, your comment basically said, the answer is always pay off the mortgage. That's not true.

[@josephvu3076]

Keep up the good videos Humphrey! We're paying our mortgage off early mainly so that we don't lose money to interest payments. Aiming to pay it all off by year 8 (only $45k left) so anything after will probably be invested in the market/retirement. Not having the mortgage will give us piece of mind and more flexibility

[@Comm0ut]

When you own your home your "survival mode" can be reduced to property tax, insurance and utilities. If the economy crashes I'm covered and I don't feel recessions. The sooner you can quit working the sooner you can take better care of your body and live with far less stress, so I do.

[@nelsonassis2953]

To me, one thing that was quite important when I made a considerable lump sum to my mortgage, was to reduce my monthly mortgage. Not to pay off the mortgage sooner (althought it would be good with the current interest rates), but at least to have some breathing room. When we purchased, the interest rates were quite low but now they really hurt our bills AND adds the stress that if anything happens and incurs extra costs for us, we wouldn't be able to make the monthly payments. So we split it, took a chunk of money that could be "invested" for the lumpsum, while the remaining continues to go to investiments. This way, at least, if something happens to our family, we have a breathing room and a roof.

[@killap3nguin]

Paid off my mortgage at 30. We still have hundreds of thousand invested. Lots less stress.

[@abiodunaderibigbe9029]

I really like that you run actual numbers instead of just 'sharing stories'.

[@AAABBB-jc9jd]

I was looking for someone to make this video and you read my mind. Thank you so much.

[@GaliaAnselmo3907]

This time last year I considered crypto without much knowledge and decided to have a consultation with a fiduciary, and it was incredibly insightful. I got into the market with 15k, One year and a couple of months in, and I'm up with 550k. I truly cannot stress enough how helpful experts in this field are!

[@EvansJordan7gy]

This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800k

[@फेबियन]

Hello how do you make such monthly?? I'm a born Christian and sometimes I feel so down of myself because of low finance but I still believe in God

[@EvansJordan7gy]

​@@फेबियनAs a beginner investor, it's essential for you to have a mentor to keep you accountable. Meredith Bartholomew camel is my trade analyst, she has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns..

[@melissaeduardo1784]

Yes, my asset manager advised I spread further into mutual funds and crypto Etf and am glad I did. The whole idea is: Don't get too greedy and also to exit at the right time, so generally do find having an adviser very helpful

[@Ryanlibermth]

With an expert such as Florence Cambel it gets more easier. They have more in dept knowledge about the market and are able to analyze the market effortlessly

[@saeedhossain6099]

3:37 interest is front loaded because the borrowed money is front loaded. frankly the American 30 year fixed rate mortgage is a gift to the American home buyer, compared to the Canadian 5 year renewable and floating rate UK systems. the key is to not live beyond your means because the bankster who sold you your mortgage encouraged you to be overleveraged. an easy rule of thumb is to take the 30 year loan, but build your budget on a 15 year fixed, and pay that 30 year like its the 15 year mortgage.

[@jameseddy6835]

I have tried to explain this to my son and have never really gotten the point across. I will make sure he see this. Thanks

[@hannahbrownnn]

I've always been fascinated by how top investors achieve millionaire status through their investments. Currently, I'm sitting on $345K from a home sale and I'm torn between investing in stocks or holding out for a better opportunity.

[@jessieyoung-szn]

I believe every Investor should start with ETFs for a solid foundation, then diversify across asset classes and maintain disciplined, regular investing to minimize risks and maximize growth.

[@allisonbutlerj]

Many people underestimate the value of advisors until they've suffered financial losses due to emotional decisions. After my divorce, I sought professional guidance to save my business and found an exceptional advisor who grew my assets from $175k to $850k despite inflation.

[@JanAlston-kd6yl]

This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation

[@allisonbutlerj]

NYCOLE CHRISTINA VANNATA a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.

[@calvinlewis-h2]

I just Googled her name and her website came up right away. It looks interesting so far. I sent her an email and i hope she responds soon.

[@oz6123]

8 yrs ago I started a 25 yr $425K mortgage. Will be paying off the mortgage by June 2025. Start with a bi-weekly mortgage payment, save and then payoff as much principle through a lump sum payment before your next renewal. The thought of seeing $4K stay in my bank account monthly instead of paying the bank brings a smile just thinking about it.

[@ROCKETS2965]

I started paying $5K principal with each payment last year. About 3 months into that I started getting bombarded with calls from Wells Fargo asking if I wanted to restructure. They sold my mortgage about 6 months later. Dont think they liked losing all that money.

[@LindseyHarvell-vc4ez]

Current rate is 6.5%. Owe $200k on our new $550 home. Will be paying it off at fast as humanly possible just like we did with our mortgage that was 2.75%. Only owed $35k on that home when we sold it. That’s why we have so much positive equity…. ALWAYS PAY OFF YOUR DEBTS FIRST.

[@CostaSeal]

I was really hoping to see what if you paid your house off early, than took whatever you were paying and started investing that in the market to see how that would benefit you. For example pay your house off 15 years early and than take all that mortgage and extra payments but put in all in the stock market for another 15 years. To see the difference if you just invested that smaller amount for 30 years or the larger amount for 15. Which would be better? I know it can differ a lot because of interest.

[@dogelife7901]

its nearly a wash. It comes down to how you oersonally want to play it. It also deoends on the market. you put everything in and market hits a recession, all your value goes down, you might lose your job, and still stuck with payments. VS market rockets you still oay on house for a while but can sell off stock to pay mortgage off earlier. No wrong answer both are acceptable.

[@DEEZEEMTB]

Finally a simple explanation that makes sense. Math and emotional reasoning. Thank you!

[@mart1n10601]

The GOAT IS BACK. Welcome back Humphrey, always love your videos.

[@humphrey]

Appreciate it!!!!

[@hejiranyc]

Two years ago I refinanced $440K from a 30-year fixed @ 4.175% to a 15-year fixed @ 2.49%. Starting this year, I started doing the biweekly payments AND paying an additional $1K principle every 4 weeks. I have enough savings/investments to pay if off completely, but I am literally collecting 5% in a CD, from which the interest alone is covering the interest part of the mortgage payments. Plus, I am in the 35% tax bracket, so I really benefit from the mortgage interest deduction. This is what I would consider "good debt."

[@Andocus1213]

Prepaying the mortgage does not make sense in your case. Why on earth would you do it? Just keep money in CD and pay off the mortgage when the CD rate drops to around 2.5%

[@dogelife7901]

​@@Andocus1213 I agree, but getting that house paid off faster is a good feeling. Watching those payments go to mostly principal instead of interest is a wonderful thing.

[@Kujakuseki01]

I have a 3% interest rate on my mortgage so hell no am I paying it off early. It’s remarkably low and we will never see rates this low again. Going to buy a second house and rent this one out.

[@VETVSS]

Smart man

[@tugboatsvideoemporium6476]

I paid off my mortgage at age 35. The peace of mind in knowing that I own something in this world is greater than the math. I fully admit the money would have been better used in investments, but I have never regretted my choice. I love living without a rent/morgage payment. It's a great life.

[@MarkSpencer-ow2ww]

Is there a reason that home appreciation averages of 3-6% were not taken into account on the spread? i.e. If the interest rate on your loan is 5% and your home appreciates 5% yearly wouldn't you be theoretically gaining 10% tax free by paying off your home?

[@chappers140]

Pay it off for me just for the piece of mind if nothing else. The feeling of owning your own home and not having to pay a huge mortgage payment every single month of your life most of which is interest. Can’t wait to be mortgage free.

[@sagarue]

I lived my childhood wondering if we lose our house all the time , a pay for home is priceless to me

[@isaacl6402]

Great video!!! One of the most misunderstood parts about real estate is how a 30 year fixed mortgage has an amortization curve behind the scenes which front loads the interest. Love that we got an explanation here. This video will probably be criminally underrated, but definitely one of my favorites!

[@Dantursi1]

I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?

[@farhuntkcg]

the best explanation i ever found..this is what i expected when i asking this question...this video ending my wonder...thanks man!🎉

[@astange614]

Your math at 7:45 isn’t right. You calculated investing $500 for 25 years, but when paying your mortgage down by an extra $500 it’s not for 25 years. The calculator clearly shows it shortens repayment to 16 years 10 months. That’s why it’s so much less. You’re not calculating the additional value of investing the amount you’re no longer paying on the mortgage for the remaining 8 years and 2 months to get to that 25 year horizon which would make these 2 scenarios truly comparable.

[@nickstark8479]

Good catch. Assuming a 8% mortgage rate vs an 8% return on invesment would equal the same in this scenario... Either way you are earning/saving the same rate (8%). However, the benefits of investing vs making extra payments to mortgage become clearer the lower the mortgage rate.

[@joncheww]

This is a great point

[@TheChuckfinn]

Thank you for commenting on the error. I was scrambling to assure myself I didn’t mess up paying down our 6.375% mortgage early.

[@LaydenHamont]

I made the mistake of getting on a variable rate plan, so I'm currently on a 6.14% rate. I just added an extra 50 bucks a week to my payment schedule. Thank you for this information

[@aliali-ce3yf]

pay off debt is always the right answer. debt sucks

[@lkoszela12]

I have never heard anyone say " wow, I really wish I didn't pay off my mortgage.." I think paying off mortgage was the smartest decision my wife and I did 👍

[@andypadova]

These mutual fund companies and investment bankers frequently sell mutual funds. Although I am aware that every investment involves some risk, buying mutual funds is generally thought to be a safer option than buying individual equities. However, should I still choose a mutual fund if I can get a higher return on investment with individual stocks at a given time?

[@YearousMona]

Yes, My biggest irk with ETFs is the lack of optimisation . Large changes in any given stock in the ETF can drag your portfolio down. But in general, ETF or not, I think the stock market isn't showing any sign of slowdown. Investing now instead of parking money in the bank would make thousands of dollars in ROI if done right

[@JosephMartin7226]

True, but don't you remember that individual stocks might also crash? All you need is some experienced guidance. Although my financial advisor has suggested that we diversify moving forward, I have already increased by more than 75% this year. It's your ability to diversify that provides you an advantage.

[@kristianmyers53]

Yes, but you do agree the amount of information on the internet can be overwhelming? Now we are talking about that, maybe you could recommend who you work with? I've put that off for too long.

[@JosephMartin7226]

Yes, it feels overwhelming when you are starting out, but with time you'll find your foot. I suggest sticking with one who understands your goals. I'll personally recommend Sharon Ann Meny because I work with her and you could check her website out, but I'm sure there are other good ones too

[@kristianmyers53]

Thank you for the recommendation. I'm gonna check her out, and I hope I'm able to make something out of it

[@johntoniolo46]

Thanks for the video! I've been trying to calculate the best path forward as I'm in this scenario now. I think the two cases are a lot more similar than may have been suggested in this video (LONG analysis ahead, sorry!) I used the 8% interest stocks vs mortgage example from the video (Let's assume no taxes on the stocks since 8% already bakes that in). If you start with a 400k loan 5 years in, that's about 380k left. The payments were 2935/month. You have an extra $500/month to dedicate to either stocks or mortgage payoff. Consider the two scenarios: Scenario STONKS: You put the entire extra 6000/year into stocks, getting you 213k by 16.75 years (100k invested). You will have 211k left on your mortgage, which will take 8.25 years to pay off. You will have paid a total of 690k (590k towards home loan, 100k towards stocks). Scenario HOME: You put the extra $6000/year into mortgage, so 3435/month instead of 2935. The loan is fully paid in 16.75 years, and you paid a total of 690k (690k mortgage, 0k stocks). Now, what about the next 8.25 years? Well, STONKS continues contributing the spare $500/month to stocks, resulting in a total of 473k after 25 years (assuming the same 8% interest). Scenario HOME now has the full $3435 to put towards stocks per month, since the loan is paid off, so we do. After 8.25 years of 8% interest, we have about 470k in stocks. At the end, both scenarios paid off their homes in full after 25 years, and have nearly the same in stocks. (This obviously assumes very smooth stock performance, and in reality most rises come from random spikes and its better to have money in the market longer since maybe those last 8 years weren't very good, etc.). So STONKS ended up paying a total of 880500 on the loan, 150k on stocks after 25 years. HOME paid 690435 on the loan, and 340065 towards stocks. Both of these sum to $1,030,500, and both have about the same in stocks. This makes sense, because both of these scenarios are approximately equivalent. Paying off the mortgage at 8% compounds just like stocks do, because if you hadn't paid that principal off, it would continue compounding every year. The net lesson here is that stocks provide better average returns, with risk and taxes, whereas the mortgage offers guaranteed returns that are likely more modest. My mortgage rate is 7.5% right now so I'm currently plugging money into that. When rates drop, I may refinance and even pull some equity out to put into stocks since at that point it would perform better on average (assuming mortgage rate is 4-5% or lower, etc.)

[@discreetphaseresolutiononi299]

I would say I don’t know how I find you on KZbin, but I know better. My husband and I have been in prayer so that we get our credit scores up and our credit record in great shape so that we can purchase our forever home. It was no one but God that led me to *Pecuniary backdoors* . I thank God for this wisdom. Bless you.

[@discreetphaseresolutiononi299]

*I’m glad it works for me and i am sure it will works for you as well*

[@AnOriginalYouTuber]

No one knows what the future holds. I'm paying mine off as fast as possible.

[@Plenty_for_Twenty]

I am your living example. Paid 400k in 23' 6% interest. My goal is to pay off early. I have a few investment accounts doing well, so I thought starting a new investment was a better option but didn't align with paying off sooner. I reran the numbers, still have that new account going with the bare minimum for full company match, the reduced 401k now goes to principal, as well as any OT and bonus. If it weren't for company match I would have done a 100% shift in contribution to mortgage. In summary, my take home pay didnt fluctuate and I have both 401k and paying more principal.

[@fonz-ys6xu]

Can the answer be both? We're doing as many double payments on a 15 year as we can afford through the year, while also investing about 30% of hh income. This year, 4 out of 6 payments were doubles so far.

[@dogelife7901]

for a 15 year id say no. its already a shortened term with likely low rate. throw those extra payments to NVDA and buy a second house when the mortgage is up 😁

[@ATCrogerwilco]

6.5% on a 400,000 loan that I just started in march so your first example is me spot on. I'll pay about a million over the life of the loan.

[@Tomeixx]

That's actually crazy for me.

[@humphrey]

crazy.

[@dogelife7901]

brutal

[@goffsgetawaygardenhomestea5997]

We’ve been blessed to do both 🎉🎉🎉

[@DEE-o4v]

So have I and my wife.....The Lord has been good to us.

[@DanDuck-mg5fw]

Always Thank Baby Jesus !!

[@chrisbowles5135]

Well said. Good job. I'm a financial analyst of 20yrs and follow this method of running the numbers vs average market returns, it really adds of quickly the small hacks. Much better than your competition clear_value tax. He's a CPA from Chicago like myself. But he had a similar vid and made it sound like interest payments where spread evenly, so I put a comment explaining the math and telling his viewers that he was spreading miss information. But it got deleted, hopefully this will not happen with this one. Good job I like watching these and feeling good about what I'm doing right due to sacrifices I take. Take care, keep up the good work. 😊

[@brandon8531]

Heyyyy I listen to clear value tax too!

[@chrisbowles5135]

@@brandon8531 Hi Brandon, I would avoid clear value tax channel, hes a CPA, but he tends to simplify the information too much, probably for views, but in turn it spreads mis information and cost people money, seek out his mortgage vs investment vid and judge for yourself, but Andrew is spot on about the pros and cons of the mortgage vs investment, I've been doing this method for almost 15yrs and look I'm finally seeing the fruits of my sacrifices vs my peers

[@edorofish]

No one ever complained about paying off a mortgage early. Paid my mortgage off over 3 years. I was financed at around 4%....its been a while. I love not having debt!

[@drevan1138]

I did here 10 minutes ago. I loved not having the mortgage, for sure, for those 3-4 years. My circumstances may just be fairly unique.

[@nickstark8479]

I'm sure no one would complain about being in that position. But based solely on the numbers, you could leverage that money in smart ways. Mortgages are tools for wealth building not only because you are able to get in on a -generally- appreciating asset without having the money to purchase upfront... But allows you to park your money in OTHER wealth building pockets throughout those 15-30 years for hopefully a greater return than that you would pay on the mortage interest.

[@edorofish]

@@nickstark8479 my $330k house is worth $500+k now. If I was still paying that mortgage I wouldn't have the equity I have now. I retired at 53. One lesson for retiring early is to not have a mortgage or debt. Now I can afford to buy a car, truck, house, or whatever (within reason) and pay cash. I don't like owing banks money.

[@Gas_man]

I would complain because I’d know I left a lot of money on the table by not investing more earlier.

[@dannymartial7997]

Not true. If someone paid off their mortgage early, but have very little money in their retirement accounts, that could be a reason why they’d regret focusing so heavily on the mortgage.

[@MaximilianFischer497]

From paying for day care and college, to managing mortgage payments. I'm approaching retirement yet inflation is getting worse and recession is biting harder by the day. How can I generate more income to retire with at least $3m for long term care? I have about 750k in savings.

[@TicheDebb0]

Investors like you should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder.

[@MarshalWagner457]

Accurate asset allocation is crucial, I used hedging strategies to allocate part of my portfolio to defensive assets for market downturns. Expert guidance is vital for achieving this. This approach has helped me stay financially secure for over five years, yielding nearly $1 million in returns on investments.

[@henryallard245]

This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation

[@MarshalWagner457]

There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with “Sonya Lee Mitchell” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.

[@EvelynBrooks0]

I just checked her out on google and I have sent her an email. I hope she gets back to me soon.

[@daylonsmith5283]

Another thing that needs to be accounted for is the appreciation of the house. So you gain a return for the interest you’re not paying but also gaining a return for your house appreciating over time so it’s a lot closer than Humphrey suggests

[@kinglucas9922]

Excellent! This is the best breakdown on KZbin!

[@michaelgonz5699]

I just bought a home in Anchorage Alaska for $500k. I used first time VA home loan with no money down. My interest rate is 6.675% my monthly mortgage payment is $3800. I make about $3300 bi monthly as an E6 in the Air Force. I just got my first property tax in the mail which was much more than I anticipated $7.6k 😢 My wife has her own jewelry business on etsy and she helps me pay for the utilities. I would pay more down for my mortgage if I could afford it. I do max out my traditional Ira and Roth Ira. I also hold mutual funds with fidelity since 2013 and I'm glad I made that decision.

[@supersquinto]

We just made a plan to get rid of our 6% 30 year within the next 2 years while still maxing the 401k match. Cuts 12.5 years off the loan term and saves us roughly $70K in interest. Various health changes have influenced our outlook. Peace of mind will be priceless. :)

[@dogelife7901]

preach

[@delsere7095]

I like how you didn't presume your viewer already had a basic understanding, and after each segment, you took a moment to sum what you had just said into a simple rule which makes all the difference. I think the 8% investment vs mortgate comparison was especially powerful. I'll subscribe because I'm curious as to how well you're able to simplify other investment advice. I'm 32 and married. We put 20% down on our home in 2018 and signed for biweekly payments on a 20 year amortization schedule - variable interest rate (5.65% currently). I work in the public sector where 10% of my pay is automatically placed into a pension plan. And I've always wondered if our additional savings should go towards our mortgage, or if we should start investing. Following your advice, because we have many years until retirement yet, and our interest rate is well below the average return on investment considering income tax, we should look into investing. Thank you!