Pause Investing to Pay Off My House?!

Pause Investing to Pay Off My House?!

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[DC-orob]

2 more month and I’ll have paid off 32k since January! Dave knows what to do.. trust in the plan!

[Je.rone_]

They need a "what's your income mug right there on the table"

[CaseyBurnsInvesting]

Dave and Chris are my favorite old guys.

[BrendanEvan]

I mean by the numbers, she "should" be better off to continue investing but for emotional health I can see why paying off the house in 2.5 years would be appealing.

[robertmillikan]

Someone 34 yr old doesn't need to be in a rush to pay house off. A healthy retirement balance is more important. If she was 60 years old, its a different story.

[tishagonzalez]

Dave and Chris 😂 that’s a combination.

[tjones]

Pay off your house Joanne.. They're hating on you! You got it going on follow your own plan. These two are a mess.

[thefigurenurseinvestor]

I understand the desire to live payment free, but to stop investing especially in this market? I agree with Dave, it doesn’t make sense. She’ll be worth a lot more following the baby steps through and through!

[sethbender]

Either way is fine. But I seems like it would be much quicker than 1.5 years if adding an extra 15 % monthly. Seems like she numbers are off but I ain’t arguing

[lepoj]

It's so interesting that here he talks about the importance of compound interest but tells people to pay off the house ealy instead of investing the difference.

[kuepandan]

The best financial influencer of todays.

[tchamp]

We're in a very similar situation, except we have 3 kids. We're also doing baby step 6 without "fully" doing steps 4 & 5. My thought is that when the house is paid off, I'll have plenty of cashflow to pay for college and for retirement. Home prices in our area are going up quickly, so when we're empty nesters, we'll sell our big house and downsize to a cheaper area, which will be a big windfall of cash.

[JLJ]

Raises are not a given, but agree on it not being worth it for 10 months

[jimmym]

Have paid off 60k so far since January!

[pigpjs]

Nice to have a caller that has a solid question and has been diligent with her money.

[ROCKETS]

This is as simple as calculating compound interest.

If I were to reduce my ROTH contributions to 15% for three years, I could pay off my house. But that slight reduction in my ROTH contributions for 3 years would leave me with $90K less at 59 years old on a 5% year over year return, and $350K less at 59 years old on a 10% year over year return.

[TheDjcarter]

Except when it comes to losing 2.5 years of investing and getting a company match to your 401k Dave is completely against it even though you could be debt free 3.5 years anyway. As long as you can pay all your bills and still have money left to snowball your debt ALWAYS invest in your 401k up to the match in your 20s your are talking about losing $250-400k depending on your income when you retire, opportunity cost of money plus compounding.

[dragonspy]

How much interest would you save if you paid off the house? Compare that to how much you would have in your 401k in a couple of years.

[LetsTalkPersonalFinance]

Dave: "Your numbers are wrong... "
Me:

[ryant]

they are both good options. her investments are going to get her somewhere in the 7%-10%PA and the house (who knows, she did not say where she lived) but personally, if I could pay off my house sooner I would take it as it's more of a phycological thing to have a fully paid-off house.