To the younger folks in pilot group
05-06-2026 | 07:57 AM
#221
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Joined: May 2024
Posts: 45
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Dave Ramsey is like financial chemotherapy. If you have finance cancer and cannot manage your life, he will solve that problem and is better than the alternative. But if you don’t have cancer, why on earth would you do chemo?
05-06-2026 | 02:32 PM
#222
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Joined: Jul 2007
Posts: 925
Likes: 82
From: B737 FO
I'm genuinely curious... if you could take out a 6% personal loan for $500k to use for investing on the stock market, would you do it? Would you consider this a financially sound strategy?
Because while it's not exactly the same as a mortgage, it is very similar in most of the ways that matter.
Because while it's not exactly the same as a mortgage, it is very similar in most of the ways that matter.
05-07-2026 | 04:56 AM
#223
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Joined: Oct 2010
Posts: 1,991
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I don’t have an emergency fund, in the traditional sense.
What I do have is a large portfolio that covers 52 months of expenses, invested in a mix of assets, including dividend funds, in my taxable account.
Even if the market collapses 50%, I’ll have 26 months of spending, and I won’t have to take it out all at once.
That’s why instead of putting $10,000 a month towards your mortgage, I’d put that money in a diversified taxable account. If you want to pay it off, I’d wait until you can make one gigantic payment and be done with it.
I’m not saying don’t pay your mortgage off. I really do understand the appeal. But, me personally, I’d feel much safer having a pile of cash on the side rather than a mortgage that’s being paid off ahead of schedule.
What I do have is a large portfolio that covers 52 months of expenses, invested in a mix of assets, including dividend funds, in my taxable account.
Even if the market collapses 50%, I’ll have 26 months of spending, and I won’t have to take it out all at once.
That’s why instead of putting $10,000 a month towards your mortgage, I’d put that money in a diversified taxable account. If you want to pay it off, I’d wait until you can make one gigantic payment and be done with it.
I’m not saying don’t pay your mortgage off. I really do understand the appeal. But, me personally, I’d feel much safer having a pile of cash on the side rather than a mortgage that’s being paid off ahead of schedule.
05-07-2026 | 10:34 AM
#224
Gets Weekends Off
Joined: Apr 2018
Posts: 4,156
Likes: 587
This is how I play it. Covid scared the **** out of me - when we were all asking existential questions about our careers, a big war chest to pay the bills was how I slept at night. And not just enough for six months, but long enough for me to do a complete career pivot if necessary.
05-07-2026 | 02:13 PM
#225
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Joined: Jun 2022
Posts: 390
Likes: 32
What are some situations where a senior NB captain’s income would go to zero??? Honest question. Are you thinking about Delta going out of business? (not likely) or You getting fired? (I assume not likely) I always figured those of us under 10,000 seniority# who behave at work are very insulated from ever having to be in a "zero income” situation.
05-07-2026 | 02:24 PM
#226
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Joined: Oct 2010
Posts: 1,991
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What are some situations where a senior NB captain’s income would go to zero??? Honest question. Are you thinking about Delta going out of business? (not likely) or You getting fired? (I assume not likely) I always figured those of us under 10,000 seniority# who behave at work are very insulated from ever having to be in a "zero income” situation.
"Don't get a degree in aviation - learn something that'll pay the bills if flying doesn't work out!" Yeah, about that...
05-07-2026 | 02:53 PM
#227
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Joined: Apr 2021
Posts: 42
Likes: 16
Anyone opt out of the MBCBP? Seems like opting out of that and diverting that excess plus to a mortgage wouldn’t be a bad idea. Maybe a little too Dave Ramsey-ish for some, but I would think right now most captains do end up hitting the 401k max at some point.
05-07-2026 | 03:17 PM
#228
Gets Weekends Off
Joined: Apr 2007
Posts: 5,629
Likes: 654
Not just captains. Many WBB hit the the limit too. IIRC DR doesn't count employer match toward retirement. If you are following DR, it needs to be 15% of your own money. Using 401K excess would be taking from the employer funds and actually put you negative in his book. Remember DR is psychology more than math.
05-07-2026 | 03:20 PM
#229
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Joined: Dec 2022
Posts: 96
Likes: 147
I asked myself how much more money I truly need to invest when I'm already investing so much every year. I don't do bonds, but isn't paying your mortgage kind of the same? A lower return, but guaranteed?
In a horrific downturn having no house payment (minus insurance and taxes) is a huge safety net, in addition to my more liquid safety nets.
I don't know, it made sense to me.
05-07-2026 | 03:29 PM
#230
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Joined: Jul 2008
Posts: 1,480
Likes: 330
Yes and yes. Unpopular opinion it seems, but I did pay down my mortgage aggressively. I totally understand the numbers and while my mortgage rate wasn't low, per se, I'd make more money in the S&P. But I max my 401k, max our Roth IRAs, contributed to 529s, and contributed to my normal brokerage. My brokerage already has a fair amount from over the years, as did my other tax advantaged accounts.
I asked myself how much more money I truly need to invest when I'm already investing so much every year. I don't do bonds, but isn't paying your mortgage kind of the same? A lower return, but guaranteed?
In a horrific downturn having no house payment (minus insurance and taxes) is a huge safety net, in addition to my more liquid safety nets.
I don't know, it made sense to me.
I asked myself how much more money I truly need to invest when I'm already investing so much every year. I don't do bonds, but isn't paying your mortgage kind of the same? A lower return, but guaranteed?
In a horrific downturn having no house payment (minus insurance and taxes) is a huge safety net, in addition to my more liquid safety nets.
I don't know, it made sense to me.
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