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BiggerPockets Money Podcast

554: Should I Pay Off My Mortgage or Invest? (We Did the Math)

BiggerPockets Money Podcast

BiggerPockets

Investing, Education, Business

4.62.9K Ratings

🗓️ 13 August 2024

⏱️ 35 minutes

🧾️ Download transcript

Summary

Pay off your mortgage or invest? If you’re on the path to FIRE, you’ve probably asked yourself this question. Without a mortgage payment, you could put thousands more in your pocket every month, and your FIRE number would decrease significantly. On the other hand, investing all the money you could have spent on paying off your mortgage may allow you to build considerably more wealth and reach Fat FIRE with more assets to your name. So, which move do you make? Mindy and Scott are coming on to debate this common investing question. On team “Don’t pay it off!” is Mindy, who just recently made a six-figure profit by NOT paying off her mortgage. How did she do it? Stick around to find out. Scott, who just bought his recent home in cash, is pro-paying off the mortgage (for some), as it may lead you to FIRE much faster than you thought. In this episode, Scott and Mindy discuss WHO should pay off their mortgage early, the pros and cons of investing vs. going debt-free, and why one move may be MUCH better for those closer to FIRE. Want more money for your future retirement? Sick of your job and want to quit quickly and retire on your terms? We’ve got options for BOTH! In This Episode We Cover Whether you should pay off your mortgage early or invest instead How Mindy made a six-figure stock profit by NOT paying off her home Why paying off your low-interest rate mortgage may make sense EVEN in 2024 How those close to retirement can shave off a BIG portion of their FIRE number and retire now Whether you should keep cash in a high-yield savings account instead of paying down a low-rate mortgage Other BIG cost-saving benefits of paying off your mortgage early And So Much More! Links from the Show BiggerPockets Money Facebook Group Network with Other Investors on The Path to FIRE Through the BiggerPockets Forums Finance Review Guest Onboarding Join BiggerPockets for FREE Mindy on BiggerPockets Listen to All Your Favorite BiggerPockets Podcasts in One Place Apply to Be a Guest on The Money Show Podcast Talent Search! Find an Investor-Friendly Agent in Your Area Find Investor-Friendly Lenders BiggerPockets Money Group BiggerPockets Money 543 - How the “Middle-Class Trap” Stops Your Early Retirement 00:00 Intro 01:27 Why You SHOULDN’T Pay It Off 05:35 Why You SHOULD Pay it Off 15:07 Keep Cash in the Bank? 20:54 Big Benefits of Paying it Off 27:51 What Would You Do? 29:29 Scared of Stock Performance? Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-554 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0

When you're on the path to financial independence, there's this big debate.

0:03.2

Should I take this money and pay off my mortgage, or should I take that money and put it in the stock market?

0:09.3

So today, Scott and I are going to have a lively debate because one of us feels like you should keep your money in your mortgage.

0:16.0

And the other one thinks the stock market is the way to go.

0:19.0

Can you guess who is right? Me!

0:22.0

All right, hello, hello, hello, and welcome to the BiggerPogets,

0:24.6

money podcast.

0:25.6

My name is Mindy Jensen, and with me, as always,

0:28.4

is my totally wrong about mortgages,

0:30.2

but I still love him anyway co-host Scott Trench.

0:33.0

Thanks Mindy, great to be here.

0:34.0

This topic is of simple interest to me

0:37.0

and I look forward to discussing it with you today.

0:39.0

I love it.

0:41.0

All right.

0:42.0

Oh, that's right. Bigger pockets as a goal of creating

0:44.6

one million millionaires. You are in the right place if you want to get your

0:47.4

financial house in order because we truly believe financial freedom is

0:50.4

attainable for everyone no matter when or where you're starting, including whether you have a mortgage and I can't decide whether to pay it off or invest.

0:58.0

In this episode we're going to talk about how you should be looking at your portfolio to determine when and if paying off your mortgage is ever a good fire decision and whether the fire math supports that.

1:10.0

We're going to discuss a quick refresh on how to calculate your FIE number.

1:13.7

We're going to talk about how to determine when and where some folks may consider paying off the

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