Should You Pay Off Your Mortgage Early or Invest? | Financial Advisor Explains

What's your current mortgage rate and are you considering paying off your mortgage early or investing? PS: Be aware of the spam/scam comments in the below comment section. I just purged a bunch, but there will inevitably be more that pop up. If theres ever a comment with a lot of likes but they're referring you to some random person's name and promises of returns...its a scam.

I want to diversify my portfolio worth around $200k, i'll be buying some Tech stocks, what are some new gen stocks i can add to my portfolio to get reasonable increase and protect my future

I've kept much of my savings in cash for safety, but I'm unsure if it's right for retirement. Contemplating investing $400K in stocks, as I've heard investors can profit in tough times. Unsure about my next move.

I’m 35 and I have about $250k liquid in savings which I plan to put towards becoming a homeowner but based on the current high prices on real estate, do you suggest I hold from buying or do stocks for now?

Paid off my house in 2019 at 31 years old. Debt free ever since. Zero stress anymore

I started investing in stocks at 18, grew portfolio to $600k by 33. Recently, lost over 30% and want to mitigate risks. Also, plan to pay off my mortgage and want my portfolio to grow. What should I do for stable cashflow?

For me, the ultimate goal of wealth is freedom. In my mind, 5 million is the magic number that will allow me to worry-free at 65 years old. Is it better for me to save money or allocate a significant amount of my income to stocks in order to accomplish this goal?

Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market

The feeling of having no monthly rent or mortgage payment is AMAZING. It changes your entire outlook. That should be what retired life feels like.

I’m paying extra on my 2.99% mortgage to achieve my goal of no mortgage by the time my kid graduates high school. It’s fun to track progress on the amortization schedule.

My husband and I were fortunate enough to be able to pay off our mortgage early. We were both still working, and took the payment amount that we had been using to pay off our mortgage faster and we put it straight into investments. We were able to retire early because of almost 7 years of putting away what would have been our mortgage payment as well as maxing out our 401K/403B plans. Thankfully we were taught by both of our parents the value of living within our means. Thank you for your advice. I know it will help people. we are interested in investments that could set me up for retirement , I mean I've heard of people that netted hundreds of thousands during these crash, I listened to someone on a podcast who earned over $650K in less than a year, what's the strategy behind such returns?

I had initially planned to retire at 62, work part-time, and save money, but the impact of high prices on various goods and services has significantly disrupted my retirement plan. I'm worried about whether those who experienced the 2008 financial crisis had it easier than I currently am. The volatility of the stock market is a concern as my income has decreased, and I fear that I won't be able to contribute as much as before, potentially jeopardizing my retirement savings.

I was looking for someone to make this video and you read my mind. Thank you so much.

Max out 401K match and Roth IRA first. All remaining goes to mortgage principal. That’s my strategy with a 6% rate

I say do a bit of both. I’ve been maxing out my 401 for several years now while also working towards paying off our house. We paid off our 375K loan in 12 years with a 3% rate. Now I’m dumping a bunch of cash into a brokerage account, beefed up kids’ college investment fund, and also maxing out HSA (8,200 in 2024) and investing that too (I’ve been doing that for years too). I’m 42 and hubby is 45 so we still have plenty of years until retirement, although we’re shooting to retire within the next 15 years or so. We don’t own expensive cars, toys, second homes, or designer bags. We do travel though, that’s about the only thing I’ll go all out for. But we keep it to pretty much one big family trip per year.

Paid my house off in about 9.5 years dumping everything i could and renting out rooms for half of those years. Bought it FHA with 3% down with a 5.25% and a PMI, then refied to a 15 yr after about 2 years to a conventional at 4.35%. Opened my 1st 401k/stock account the next year and now trying to catch up there. Very glad i did it that way, the peace of mind is priceless and the flexibility to not need any other forms of debt will continue to make my dollars efficient.

Excellent! This is the best breakdown on YouTube!

I agree. The interest rate you have on your mortgage will largely determine if you should pay it off early. However since I work in tech field, the job isn't that stable, so I decided to pay my mortgage off early to gain "piece of mind" after I was able to accumulate enough in savings and retirement that I feel comfortable with

I got 6% interest, I’m definitely throwing all extra money at the principal

As a CFP I LOVED to see you bring into this conversation the effect the amortization schedule has on the interest savings for paying off a home early. No one ever talks about that and your example laid it out very clearly. Keep up the great work!