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Should You Invest or Pay Off Debt? (VERY Important)

Chris Invests 234 views

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The House wins because you forgot that the house is worth more after 30 years
Comment from : @MultiScotty24

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money I started investing with $150k and in the first 2 months, my portfolio was reading $274,800 Crazy right!, I decided to reinvest my profit and get more interesting For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family
Comment from : @Donnafrank-k6e

Worst argument to pay off your low interest mortgage- "Well what if you get fired and can't make the payment anymore?"brReason- Because in this hypothetical I have been investing and stockpiling that money not spent on the mortgage If I fall on hard times half way through the mortgage, the worst thing that can happen is I just cash out and pay off the mortgage anyway No, the market is not going to suddenly drop past it's entry-level 15 years ago, that just doesn't happen, you will sell out with a profit, just a smaller one if the markets are bad at the time of crisis
Comment from : @LegDayLas

4:10 Paying down debt vs investing
Comment from : @alphabeta8403

I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my inherited portfolio of about $25m I’m used to just buying and holding assets which doesn’t seem applicable to the current rollercoaster market plus inflation is catching up with my portfolio I’m really worried about survival after retirement
Comment from : @kortyEdna825

Payoff high interest credit cards before investing
Comment from : @michaellove5675

I pay myself first Retirement accounts take time for compounding to occur Of course, my mortgage is at 4 percent… I still think I’d put in regularly to a retirement account even if my rate was higher, just wouldn’t max it out
Comment from : @rodrigok1220

Your videos are very much appreciated and timely
Comment from : @bigsky5526

Don't fall in debt trap
Comment from : @IslamTheFinalMessage

Concerns about a potential recession and the Fed's talk of interest rate hikes have left me uneasy I'm unsure about my $440K portfolio strategy, considering the uncertainty of a recession and the possibility that interest rates may not rise significantly
Comment from : @Riggsnic_co

I think doing both makes sense 15 to invest and a chuck to the principal of the loan No one has been evicted when the mortgage is paid for
Comment from : @grahfkarate1799

Making the first 100k has been a marathon, I am 26 and at 75k mark, No useless spending, no vacations, just work, save and most importantly invest in options trading, thanks to my fiduciary Mr Arlto Eric, I am blessed and I believe I will keep been blessed
Comment from : @dave1142

Scenario 1 is wrong You forgot to take into account after paying off the mortgage in 15 years, you will have 15 years off additional income to invest to equate the 30 year comparison
Comment from : @winkf1ma

With today's Interest rates, this shouldn't be a question at all, gains aren't guaranteed
Comment from : @michaelkeudel8770

I follow and love your videos sadly, it's been a while since i visited it has been a very rough year i am experiencing one of the most challenging phases of my life Lost a fortune lnvesting in emerging companies Hopeful, for a turnaround
Comment from : @OttoLane-j9z

New credit cards now offer 209 to 309 interest rates How do you pay that off?
Comment from : @calbob750

Is it me or are these calculations significantly wrong
Comment from : @Princeroyc

It depends on the size of the debt 5 interest on a home loan you lose more money than you'd make with 15 profit on investments Put extra money on the home loan to pay it off quicker will be better
Comment from : @Hunty49

Ive never been sorry for paying off debt instead of investing
Comment from : @glennpham2763

Sounds great in theory but most people aren’t as disciplined as to invest regularly each month and will use the money for this or that at some point Hence it’s better to pay off the house instead as once it’s in the banks hands, you can’t take it back
Comment from : @juraj_b

Pay it off
Comment from : @johnurban7333

I rather pay off the mortgage Investing with debt any debt such as mortgage debt is a gamble I would rather know I owe nothing to no one
Comment from : @raze5346

Mortgage debt: 0, credit card debt: 0, car loan debt: 0 (no car), student loan debt: 0, debt of any kind: 0 Debt sucks
Comment from : @jim2376

I think there is an additional factor this math should consider in your pay-off of debt vs invest equation using assets that normally increase in value over time Over the 20 to 30 year period of paying off the house, Its retail resale value should increase Given 20 to 30 years, the houses value will most likely have at least doubled This increase in home value could shift some of the final dollar amounts Still the longterm compounded investment will most likely win
Comment from : @LivingTheGoodLife-p8i

But in 30 years that's going to be pocket money
Comment from : @mcmerry2846

This is a topic I struggle with myselfbrMy mortgage still has 15 years to go and has a 08 interest rate for the next 5 years (€490), the interest rate will be revised again in 5 years In my country my mortgage downpayment is also tax deductablebrMy car loan has 06 for another 3 years brWhile I would like to remove these debts, especially the car loan, I'm pretty sure I will get a better return if I invest the extra money while I continue my monthly payments
Comment from : @Aenion11

Dept cost money you don't need to pay It's a waste of money
Comment from : @TheThisisliving

I would certainly pay off any credit card debt you may have I know of very little investments if any that you can make 20 in your money like the interest rates on credit cards…
Comment from : @trewright1482

Do both, but a bulk of your money goes towards debt while 10 in investments
Comment from : @ACCOMPLISHEDSHEIS

Dont forget you are also losing purchasing power each year and your debt is being inflated away In 30 years, a $350,000 mortgage will seem like a hell of a deal
Comment from : @mitchtavio

Because you make these very helpful suggestion videos ,I really am curious if you’re a millionaire yet because it seems like you have all the answers lol
Comment from : @Leclaudservices

wayyyy ahead of ya, i havent been paying my student debt for YEARS now lololol
Comment from : @jamesr9400

Stay out of interest debt that is above the rate of inflation Having debt below or at the rate of inflation isnt a bad idea provided the funds gained are used in a manner that will get you more value than you gave up Additionally mortgage interest is tax deductible That may not be a big deal at the lower end, but at the higher end it is a big deal in that it will move your upper end tax bracket significantly
Comment from : @williamshippey9139

Bhaiya mein toh unpad ho chal nikal
Comment from : @puneetjindal6426

Pay off debt No debt is a great feeling
Comment from : @lot2196

This video must me sponsored by the big bank criminals!!!!!!!
Comment from : @tomhawk8240

NUMBER ONE GET OUT OF DEBT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Comment from : @tomhawk8240

Forgot to mention taxes and divorce Two things that most likely will affect any financial decision
Comment from : @bryanrobinson6891

Check the interest rate on your credit card(s) It could be as high as 30
Comment from : @lincolnsghost7328

10 ROI is a dream Better to pay off debt
Comment from : @battleclover9537

I don't have any high interest debt I plan to keep it that way A car loan, a mortgage, those are low interest loans which you leverage to have more money in your investments over time
Comment from : @seattlegrrlie

My contention is that you state that you could be giving up 10 returns to pay of 5 debt That 105 return on your investment is definitely not guaranteed, but that 5 debt is
Comment from : @stevecunningham6821

Payoff debt and start a business Stock can't consistently make 10 yoy, you'll need to avg it for 30-50 years
Comment from : @jamesstpatrick8493

You should do both Pay off Debt and invest……
Comment from : @InvestingWithKevin

I who earns $3/hour brhahahah
Comment from : @jeremycollier4748

Everyone! Pay off debt
Comment from : @swiss9495

Thank you
Comment from : @davidhandzel3738

I don't have any debt with a higher interest rate than 3 Most of it in mortgages I'd bNEVER/b choose paying those off over investing
Comment from : @John-sb7pn

Get a 15 year mortgage To many people keep borrowing against their equity to dig out of other debt Vicious cycle
Comment from : @wmp3346

Yes unless you are going to make more by using that money I recommend paying debt off and avoiding it going forward
Comment from : @wmp3346

I think the risks associated with your plan here far outweigh the benefits considering that interest is crushing and is absolute The returns on investment are variable as well your personal health Expecting to be able to do anything for 30 years is a huge assumption I had this decision when covid started and I decided to pull money out and pay off home 25 years later my decision has been undoubtedly the best one Others may have different experience
Comment from : @jiminycricket9862

Always pay off debt
Comment from : @TheFbiFilesRepeat

In general, positive ROI is not guaranteed; but the interest on the debt, pretty much, is
Comment from : @TS000

Paying off mortgage early is the most stupidest idea The only time you should pay it off is right before retirement My mortgage is only $85K I could pay it off tomorrow by selling some of my stocks but I won't Putting $85K into investment, the profits will quardraple the interest I'll pay within 10 years I won't get 10 yrs back nor the $85K easily if I already paid it off The only thing I would get by paying it off early is only sentimental value that will wear off in a year or twobrbrRemember your home ain't gonna feed you when you retire, what matters is how much investment you have Worst thing is your entire net worth all ties into paid-off home and you got zero nest egg which happens to so many peoplebrbrI don't get why people so get excited about paying off mortgage My mortgage is only $750 a month and my monthly net income is close to $7K I have 7 figure investment (incl DBPP) at age 39 My mortgage is negligible compared to my entire net worth It ain't giving me no stress at allbrbrInvest first Pay only minimum into mortgage Invest everything you got except emergency fund Do NOT follow Dave Ramsey DR is mere entertainer
Comment from : @davefoster2962

My father in law said paying off my house was a stupid idea and that I would " lose my tax write off" my reply was, why do I need a tax write off if I have no mortgage ? I paid the house off years ago and all that cash is piling up that I would have had to give to a bank I saved 150 k by paying off the house early and screwed wells Fargo out of that money (The way I see it)I'm good with that 🤣
Comment from : @filthbomb

Pay off the debt When you don’t have debt your stress level goes way down Back in 2008 I saw so many people lose their house because others convinced them to use the equity in their house to buy an even bigger house (more debt) The market crashed and they owed way more than their house was worth Many of those people still lived in apartments 10 years later And when you don’t have debt, money accumulates so fast You aren’t going to gain more in the market than you’d save by paying it off - I don’t care what the statistics say Don’t be stupid folks - be prudent - don’t get screwed!
Comment from : @Encourageable

I'm glad you figured in the inflation and the reduction of the value of the dollar Most people ignore that Inflation over the last 10 years has been 27 OUCH
Comment from : @theqyldguy4473

This is BS! The S&P return is a “possible” rate while the mortgage is a “definite” rate You can act like they are identical You could easily lose money in the market Plus you can not even buy the S&P It doesn’t exist for purchase All you can do is buy into a fund which mimics it and such fund have lots of fees Do not listen to the advice in this video
Comment from : @frankbradford9616

Depends on your risk tolerance brDebt is a guaranteed liability brInvestment is only the possibility of a return brIf interest is significantly less than inflation it makes it more tempting to service it minimally and try to make money in the market
Comment from : @getinthespace7715

It's not an either or You can put 50 toward debt and invest the 50 Your age also makes a difference Anyone over 50 should focus more on paying off debt, especially a mortgage, as market returns are not guaranteed over any specific time Other factors are inflation, which is certain to increase in the next 10 years beyond the previous 30 due to fed printing policies As for paying off a mortgage, if you still owe $1000/mo property taxes, you need to make plans to move to a low tax state, especially after age 50-55 It also allows you to tap the net worth of your home
Comment from : @TheOldTapeArchive

It is VERY rare to earn more in investing than interest on debt This is a very misleading video brbrOr you know, go ahead and downvote me and don't believe me, go invest all your money instead and keep your debt(: Don't matter much to me Just hope that young people don't listen to this video, it will make you poorer
Comment from : @ronnieolivegaming

"principal", not "principle"!
Comment from : @nrqed

yes pay dept of as you get older
Comment from : @mark-se6ef

I'm doing both investing $25 weekly and paying an additional $100 monthly on our mortgage We're also building our emergency fund by $25 weekly We have well over $1,000 in the fund
Comment from : @danicegewiss862

What kind of debt? Low interest usual thing like a reasonable car loan or a mortgage? Nah invest lol brbrBad debt? Kill it ASAP
Comment from : @englishsteel-nz6im

A big yes ! to doing both ☝️
Comment from : @mattabouttrails

Everyone who followed this advice to NOT pay off debt last year and instead invest has lost that money However, the debt still exists If those people had focused on paying off debt, the debts would be smaller, or even gone Always ask yourself, "What would 10 years from me now think of me?"
Comment from : @jeffwhite6033

I'm doing a hybrid Paying of my house, saving for another and renting out this one
Comment from : @richsamuel2922

I am about 3-4 years into my investing journey if you asked me in my first 3 years I would have chosen to invest Now I am 100 sure i would pay off debt
Comment from : @ExplorationRandomDestination