A reader e-mailed me this week to ask if they should pay off their mortgage or invest in their 401(k) for retirement. There are a lot of things to consider when making this decision, so there…
Video Rating: 4 / 5
Saw this video and thought what does this kid know. But after watching it
was an excellent video. Love the concept of if you would borrow money to
invest in the stock market. I’ve also never met one person who said they
regret paying off their mortgage but I have met tons who said they regret
investing in the stock market. the stock market should only be used after
your mortgage is paid off and you have considerable assets. Why? Because
the average Joe doesn’t know anything about business and the stock market.
So when the market sells off, they will end up panicking and selling out at
the bottom. The net result from their investing will actually end up being
negative over time because of this human nature component.
Your advice actually make sense !! A lot of other planners advise against
paying down the mortgage regardless…
ur not a financial planner, ur a teenage kid
Liquidity is tied up if you pay off your house. the emergency fund is the
first thing,as he suggests.Paying off debt is a guaranteed rate of
return,but an investment can lose money, so it’s not guarantee. there’s a
price for peace of mind. All these tax implications and other things mean
nothing if you lose the roof over your head.
I was initially planning on paying off the mortgage early. We are at a
3.50% rate. Speaking to others in a financial forum convinced me otherwise.
You can get a return in the stock market at 6% so that will be a 2.50%
difference over 30 years. Alan would it depend though how high your loan
is? How about $575,000? Would it pay to invest or just spend the next 18
years paying it off?