I was listening to a Dave Ramsey clip a while ago. I don’t agree with a lot of his finance points, but I like to listen to people with different opinions. This one bothered me though. His advise was, if you have spare income, always use it to pay off your mortgage faster and never invest until the mortgage is paid off.
I agree that in some situations, paying off the mortgage is better than investing, especially if you have a high interest rate, are risk adverse, or just hate having debt, but I just can’t rap my head around Ramsey saying EVERYONE should pay mortgage before investing regardless of circumstance.
For example, my girlfriend are both 30 and me own our home, bought precovid and were lucky enough to get a 2.99% interest rate. Each month each of us invests $1,000 into the market. I’ve been doing this for 5 years and have been averaging 8% return. I can’t see any monetary reason why we would put this money to the house instead of continue to put it in the market.
I’d like to hear other peoples opinions though. Anyone a staunch mortgage before investment guy/girl? Or everyone agree with me and I should rub it in Ramsay’s bald face?
original posted by Comfortable-Chip6212 to r/personalfinance on Wed, 06 Mar 2024 17:55:33 GMT.