554: Should I Pay Off My Mortgage or Invest? (We Did the Math)

BiggerPockets Money Podcast

Pay off your mortgage or invest? If you’re on the path to FIRE, you’ve probably asked yourself this question. Without a mortgage payment, you could put thousands more in your pocket every month, and your FIRE number would decrease significantly. On the other hand, investing all the money you could have spent on paying off your mortgage may allow you to build considerably more wealth and reach Fat FIRE with more assets to your name. So, which move do you make?

Mindy and Scott are coming on to debate this common investing question. On team “Don’t pay it off!” is Mindy, who just recently made a six-figure profit by NOT paying off her mortgage. How did she do it? Stick around to find out. Scott, who just bought his recent home in cash, is pro-paying off the mortgage (for some), as it may lead you to FIRE much faster than you thought.

In this episode, Scott and Mindy discuss WHO should pay off their mortgage early, the pros and cons of investing vs. going debt-free, and why one move may be MUCH better for those closer to FIRE. Want more money for your future retirement? Sick of your job and want to quit quickly and retire on your terms? We’ve got options for BOTH!

In This Episode We Cover

Whether you should pay off your mortgage early or invest instead

How Mindy made a six-figure stock profit by NOT paying off her home

Why paying off your low-interest rate mortgage may make sense EVEN in 2024

How those close to retirement can shave off a BIG portion of their FIRE number and retire now

Whether you should keep cash in a high-yield savings account instead of paying down a low-rate mortgage

Other BIG cost-saving benefits of paying off your mortgage early

And So Much More!

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BiggerPockets Money 543 - How the “Middle-Class Trap” Stops Your Early Retirement

00:00 Intro

01:27 Why You SHOULDN’T Pay It Off

05:35 Why You SHOULD Pay it Off

15:07 Keep Cash in the Bank?

20:54 Big Benefits of Paying it Off

27:51 What Would You Do?

29:29 Scared of Stock Performance?

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-554

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