tnkrdrvr

I generally agree with your financial priority list. Paying off a mortgage matters, but financial security lies in creating new sources of income.

hercretired

why would I pay it off? for what? I can't tear a hole into the drywall and pull cash out. My mortgage is the lowest interest rate "loan" I have. FAR lower than my measely credit card balance, and car loan. I will pay off more expensive money first. And invest the rest

Dave Ramsey has some good ideas but they are not all good.

rickair7777

1. The market is the market. It will come back.

2. There's no such thing as "investing" in crypto, only speculation. I could have told you this was going to happen. And I'm not any kind of financial genius

3. If the real estate market tanks too I'd rather NOT have my wad sunk in the house because then I have no flexibility if I need to move. Lose the job? You can still tap the 401k/IRA, and only eat it on the amount you need. If you have to tap a paid off house, you're screwed... best case a partial mortgage at high interest, worst case you can't GET a mortgage because you have no job and have to sell and eat the loss on the whole enchilada. Maybe you can rent it out and live in a trailer?

4. Federal tax rules incentivize having a home loan. It's the only loan I have, it's well under 3%, I'm in no hurry to pay it all off.

TiredSoul

No house payments.
No car payments.
No debt.
Feels amazing.









Ready for the apocalypse.

Armyguy

No car payments.
No debt.
Feels amazing.

You forgot a couple I would like to add:
Lots of .22 bullets, guns, and a shotgun.

No house payment, No nuthing. Kids college paid for in advance. Cash in the bank.

It does feel amazing

rickair7777

Agree with the last. Or if you must, do it young, early, with no kids "Starter Marriage".


I've been doing some retirement research lately, which led to watching some Dave Ramsey. I came to some conclusions, and felt the need to weigh in about Dave...

1. A lot of it is daytime TV, ie viewers getting vicarious pleasure listening to Dave telling idiots how dumb they are.

2. His basic principles may be useful for young people starting out and those who will live their entire life in a middle class/lower middle class rut.


But if you're a major airline pilot, you are out of Dave's league and need to customize your approach to finances to account for not only your (eventual) high earnings but also the unusual way pilot earnings are distributed throughout your career, as well as the unusual risks (medical) and benefits (LTD).

There are different ways money can work for you, Dave is too simplistic for our income bracket.

galaxy flyer

Don't forget the Japanese real estate and financial markets were unstoppable in 1990, they'd take over the world until they collapsed for 30 years. I'd be very chary of borrow on the house to invest in stocks. It might work or you could be the poster child for Japan 2.0.

sailingfun

Owning the nicest homes I could afford over the course of my career set me up very nicely in retirement. I also got to live in great places and excellent neighborhoods. The prevailing advice to live in a trailer or small shack is rediculous.

Rama

Having been furloughed twice and burning through two 401k's at the time, I am one of the guys who favors paying off my house.
Not there yet, but it will feel good when its done.

badflaps

You sir, have lived a charmed life. I will guarantee that your DAL retirement and mine have no possible relationship. Live well, you have no idea how bad retiring from the same company can be.