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Quit Listening to Those Idiots!

[Music] brought to you by the every dooll app start budgeting for free today Paul is with us in Minneapolis hey Paul welcome to the Ramsey Show hey Dave thanks for taking the call I have another should we pay off the house early out of our retirement question for you okay why is this one different um well we're my wife and I are both retired uhhuh I'm I'm 61 she's 58 we retired with the mortgage mhm and I've got a number of differing opinions from our financial guy I've Got Friends that work in the finance industry I worked for a banking 30 years and um I guess just looking for another opinion maybe one with a little bit more Credence than some of the others I guess okay so how much do you ow in your home uh so it's a $450,000 house we owe 170 and how much do you have in your nest what's that how much what's your net worth what do you have in your nest EG um net worth is about a million and a quarter we've got just over a million of that is uh investment and retirement if your house was paid off if your house was paid off why would you go borrow on it uh we would not then what's the difference I I gu it's just okay let me rephrase the question maybe a a better question is if we decide to do this is it a process over multiple years to ease a tax burden do we just bite the bullet and take the hit and do it once or how how would I do it I've been doing this 30 years I've never had anybody call me back and say they were pissed off because they paid off their house fair enough so one shot or would you uh I'd write a check today I'd be debt free I'd have been debt free yesterday if I were you and quit listening to all these idiots there's a lot of idiots out there running around with an opinion about your money and you're a millionaire what's your mortgage payment right I'll I'll go ahead what's your mortgage payment right now mortgage payment is what 1,200 okay you'd freay up most of that which then now you can invest so yes you'll lose some out of that investment account but you're going to still invest for the next 20 years dude you're just going to sleep so much better tomorrow I mean we're both retired so invest is rolling not necessarily additional you have almost zero risk in this situation because you could write a check at any minute and pay it off if you got in a pinch you don't really need the money in one way or the other it's all about you know what is your end goal when you're 85 do you want to have a mortgage you know why would you keep it there's no reason to keep it you wouldn't go borrow on a paid for house in order to have more money to invest and so write a check and sleep better tomorrow tonight tonight pay it off tonight hit the submit button and then when you go and you get the mortgage release in the mail make a copy of it take your shoes off walk into the backyard have a mortgage burning party and tell me that didn't feel good I mean there's just no there's just no downside to this um you know you're a millionaire you're going to you're going to be okay either way if you don't follow our advice if you follow those idiots advice but if I've got a financial person that's telling me to stay in debt I'm getting a new Financial person period because George we studied 10,167 millionaires the number of them that told us that they became wealthy because they borrowed on their home in order to invest was precisely zero none of them leveraged their personal residents to build their wealth none of them and so the idea that I continue to leverage my personal residence in the name of Building Wealth is asinine based on the millionaire data well we're seeing so much more of this because people have their record low mortgage rates they don't want to let go of Dave like why would I pay off my mortgage you know but I got your mortgage rate beat you know what my mortgage rate is zero I don't have one hello heck of a rate zero I got the best rate come on man so when go up and down you don't have to worry about them cuz you don't need debt anymore it's a great feeling instead of worrying about what the Market's doing so yes it hurts to write that check and lose that much money lose quote unquote but you never really had it if you owed it to the lender in the first place Paul pay it off son pay it off you you're there's a bunch of intangibles that you're not even considering in this decision you're still acting like it's primitive math um or at least the idiots advising you are so you you're going to sleep different your wife's going to look at you like a hero never never once have we had a wife said you know my husband borrowed deeply on our mortgage and he's my hero never came up I love the Kermit Vibes she had too there was great

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