[USER]

I’d like your thoughts on the moneyguy vs Dave Ramsey, when it comes to paying off mortgage fast vs investing for growth (like in stock or rental properties)

Which ideology has helped you achieve FIRE fast?
A bit of context, if that helps.

Our mortgage balance is $250k, with interest rate of 2.6%. We have enough in the stock to pay off our mortgage if we want to, just not enough to retire yet.

My household is divided between the two ideologies, thus asking for more perspectives.

[Dew]

If you want to maximize net worth over the long term, there’s no question about it, keep the mortgage and keep investing.

If you have a low risk tolerance, then paying off the mortgage would lead to a greater peace of mind.

Personally I think it’s a mistake to pay off a mortgage that low.

If it was 6% I could understand better. But 2.6%, I would absolutely keep the mortgage.

[Krista]

There is no way I’d pay off a 2.6 loan any faster than I had to!

[Noa]

Dave ramsey to get out of debt, themoneyguy to get to FI

[Watson]

They are both good. Money Guy is amazing. So, if I had to choose one, Money Guy every time.

[Joshua]

Do what gives you the most freedom and peace. For me, it was paying off the mortgage. As a teacher, having a mortgage was like a chain around my neck.

I lost my father early to MLS, but the little money he left us gave us a huge jump to being debt free.

That was 17 years ago and our net worth is well over 1M now with zero debt.

[Bryan]

I think it’s a personal choice. If you hate debt pay it off. If you’re ok with debt let it ride.

I think you would make more in the market than you would save paying down, but it also depends on where you’re at in the amortization.

In the early stages of the loan it’s all interest so making payments really helps reduce the interest in the beginning.

If you’re at the end it’s more principal. I like what Dave speaks to in that there’s a lot of freedom in being debt free.

Opens up more options for you in terms of work, etc. freedom to leave your job. I also don’t think it’s all or nothing.

You can pay extra on your mortgage and you can start investing which allows you to learn about buying and selling, etc.

I don’t like putting it all in to pay down the house and waiting to invest until that’s done.

You need to learn about investing as well. For what it’s worth I could have paid off my house over the last 10 years but the.

I would have missed out on the last 10 years of gains which has really grown my net worth!

I’m about 50% stocks 50% real estate including 3 rental properties. Best of luck in whatever you decide.

[Mario]

That’s no debate. Definitely the MoneyGuy. Ramsey is amazing for getting out of debt if you are bad with money and is very good at getting you rich very, very slowly.

Ramsey doesn’t even begin to comprehend FIRE and attacks it constantly and suggests many things that mathematically make no sense, like forgoing a 100% employer match, in favor of mindset.

I cannot think of any other investment that gives you a guaranteed 100% return plus is compounded over many years.

[Sean]

If your goal is to achieve fire or grow your wealth, or have more money do not pay that mortgage off early.

If your goal is to be debt free and you couldn’t care less about actually having money or investments, then pay the mortgage off.

[Robert]

There is simply No “one size fits all” when it comes to FIRE….. and certain questions posed theirin.

Most people who use an “ideology”, to get to FIRE- at least this was the case for me- use a combination of strategies- And if you do a bit of searching, you’ll see what my strategies were.

We simply do not know enough about your income; your other holdings; your ages; and your retirement timeframe to be able to properly advise you.

I will see this however; a mortgage rate of 2.6% is close to “free money.” Assuming you have a comfortable emergency fund set up, I would take most of that $250,000, dump it into a fund that mimics the S&P 500; and then forget about it for the next 30–30 5–40 years.

But that’s just me– and that’s without knowing anything more about your financial situation.

[Carla]

Do not pay the mortgage, VTI /VTSAX is up 17.71% YTD… that’s way higher than 2.6%. The money guy is truly the most efficient way.

[Josh]

The money guy approach is better from a math standpoint, but If you are bad with money/debt.

Dave Ramsey approach (or atleast the first few steps) might be what’s best for you.

[Bassel]

Your expected return on other investment is very important to this decision. If you were paying 8%, I think the mortgage is a good target.

At 2.6%, I would categorize this as good debt.

It generally even beats inflation, the real one, not the way the calculation is reported.

History would suggest you will beat that significantly on average in the stock market – personally I don’t believe the high end, but certainly the low end is even safe, spread across years.

Also calculate the mortgage interest deduction, while you don’t have to pay tax on gains until realized and a discount on dividends.

I am not a financial professional.

[Bam]

I like them both
Yet I understand Ramsey’s concept, he is more of peace of mind and securing the finance debt free

Money guy is more of a investor mindset concept
Just my thoughts

[Nicole]

With a mortgage at 6.5%, I put a lot of extra towards the mortgage. I put above average amount in my 401k and other investment accounts.

You can do both, but in your case hands down keeping and investing in the stock market is going to make more money.

[Texan]

Ours is 2.5%, I’d rather have the money in the market. I made 30% on that money last year. It’s a no brainer.

At 5 or 6% mortgage, the peace of mind of no mortgage might change my mind.

[Fernando]

Money guys, invest now. Double down on that. 2.6% rate is free money. I’m on the same boat; I keep adding to my investments.

[Author]

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