Should I Pay Off The House Or Invest?

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[alwayswinning]

I'm so glad they told her to fire her financial advisor. I really hope she has paid off the house now

[tonypeters]

Pay off the mortgage and then really ramp up the investing! If anything would happen to her a month from now where she couldn't work, a paid off mortgage would protect her!

[SpicyKimchi-]

Sitting on 160 when house is 100, why hasn’t both a paid off house and investment in mutual happened already?!

[Eddie-]

Pay off the house. Get 100% debt free. The greatest feeling in the world.

[dasheffield]

I hear why this woman been single since 2003 😩😩.

[tylersanders]

The difference it makes in your life to sit back and take a deep breath and say you don’t owe anyone in the world anything is unbelievable. This is life advice just as much as it is financial advice. You own the land you sleep on and all of your income is free except for around $5k per year for taxes and utilities.

[foodlover]

Great job Theresa 🎉
Hope your home is paid off by now! Remember that’s also an asset !
I loved this call

[Jrd]

“It’s metaphorical “ lol these guys are awesome!

[aboutwhat]

If a CD has a higher APR than the loan, put the $$ in CD's earmarked for the mortgage principal.

[BrianaBudgets]

Teresa is a badass!! She’s killing it and she doesn’t even realize it!

[rachelhagen]

I totally agree, ditch the Financial advisor he's just in to make money off of you, pay off your house and be debt FREE

[takingbackprofits]

Pretty sure this question is asked once a week lol

[toothybj]

Why pay extra towards the mortgage when you can invest that money at ~10%?

[dreesaad]

Wanna know what financial advisors do???? They pay off their own houses making money from you 🙄

[LV-FOURTWENTYSIX]

Hey the Ramsey show and chance we can have follow up on some of these calls to see were they are now.

[rachelharrison]

Regardless of whether you agree with the advice, not all financial advisors work on commission and make more money just because you invest more.

[genxx]

Listen to this lady’s voice. Do you think your helpless loved ones would be safe in the hospital with her, exhausted, managing their drugs and wounds?

[LukeofAllTrades.]

Max AGI for a single person into a Roth IRA is $144k, she's likely over that, so hopefully she didn't put money in a Roth yet, like a lot of the commenters are saying to do. Regular IRA is fine though, load it up!

[homarmendoza]

why not both invest and pay off the house? if you have over 160k in liquid cash, you could be earning yield on a bank cd or bond. then what you do is take out a credit card and buy other assets like gold and silver that you can sell for cash to put towards the house. its basically like refinancing with credit cards, all you have to make sure to do is keep an eye on your net interest margin so that you dont end up paying interest on the credit card. it would work best if you have some time left on the mortgage to potentially save 2-3x the cost of the metals in mortgage interest over the life of the loan. you can even save 10% of the metals asset to "hedge" against a dropping home value and its basically the same as investing since you are waiting to sell at a higher price with the opportunity cost of saving 10% less interest each time you repeat the cycle. its better than giving up 60% of your capital to pay off a liability like the house and not being able to start investing because of budget constraints like an emergency fund. you already paid most of the interest on the house if you have a few years left on the loan so if you pay it off without saving interest youre just flushing your own money down the toilet.
any investment opportunities should have a minimum return of at least your weighted average cost of capital which should be really low if you have a ton of money earning the risk free rate compared to the credit card rates.

[jameschaves]

No one ever mentions the importance of time and compounding. I’m at 2.125% I’ll take that to the grave while piling up money in my portfolio!!