Thread: Should I go full Dave Ramsey?
05-20-2024, 04:44 AM
#1
Should I go full Dave Ramsey?
Now that I have a 2nd kid on the way, going full dave is more and more tempting for the peace of mind. Might also live longer cuz I’d likely have almost zero stress when it comes to keeping my job as well. I’m completely aware it doesn’t result in the highest possible return, but it sure would be nice to not worry about anything happening ever.
Rate on current house is 7.3% and payment is just under $5k/month. If I sell the stocks in my taxable brokerage account and my other real estate, I’ll be able to completely pay off my primary residence. As of this instant, after closing costs and taxes, it would leave me with a fully paid off home worth $850k and about $300k in retirement accounts.
Or I just stay leveraged for max gainz. Maybe try to keep this going for 5 more years until I’m 40 then pay it off.
Wife is currently against paying it off and wants to stay leveraged. Wat do.
Rate on current house is 7.3% and payment is just under $5k/month. If I sell the stocks in my taxable brokerage account and my other real estate, I’ll be able to completely pay off my primary residence. As of this instant, after closing costs and taxes, it would leave me with a fully paid off home worth $850k and about $300k in retirement accounts.
Or I just stay leveraged for max gainz. Maybe try to keep this going for 5 more years until I’m 40 then pay it off.
Wife is currently against paying it off and wants to stay leveraged. Wat do.
See title.
Always Neg Back Crew.
Quote
05-20-2024, 04:47 AM
#2
At that interest rate I personally would pay it off. The opinion I've heard of people that have paid their mortgage off even if the numbers didn't make sense have overwhelmingly been glad they did
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05-20-2024, 05:21 AM
#3
YES!
(Coming from a debt-free, paid-mortgage millionaire who got here with Dave's advice).
"Max gains" happen when you can pour $5K+ into investing each month…
(Coming from a debt-free, paid-mortgage millionaire who got here with Dave's advice).
"Max gains" happen when you can pour $5K+ into investing each month…
05-20-2024, 05:23 AM
#4
You're not living if you aren't at least triple leveraged. Though that mortgage at 7.3% is crazy.
When it comes your time to die, be not like those whose hearts are filled with the fear of death, so that when their time comes they weep and pray for a little more time to live their lives over again in a different way. Sing your death song and die like a hero going home.
05-20-2024, 05:29 AM
#5
Not fair on the kid to feed it rice and beans
Nor to expect others to pay for its existence
Why did you get stung for such an expensive mortgage, 7 % is crazy
Nor to expect others to pay for its existence
Why did you get stung for such an expensive mortgage, 7 % is crazy
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05-20-2024, 05:44 AM
#6
Why did you take such a terrible loan?
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05-20-2024, 06:13 AM
#7
I went full dave ramsey for 2 years and my net worth us drastically up from day 1.
I recommend it for everyone.
I recommend it for everyone.
[My wife drank 9 Adios MFers in one night on a business trip with her boss]
05-20-2024, 06:40 AM
#8
In on low socioeconomic peasant cope thread.
How dafuq does one even get a mortgage over 7%?
How dafuq does one even get a mortgage over 7%?
05-20-2024, 06:41 AM
#9
At 7%, yeah, totally do it.
Hell, even at 5% I'd do it. The piece of mind is worth far more to me than the difference in return.
Hell, even at 5% I'd do it. The piece of mind is worth far more to me than the difference in return.
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05-20-2024, 06:44 AM
#10
go full oven
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05-20-2024, 06:47 AM
#11
Boomer Dave spews complete nonsense a lot of the times (especially on investment expectations) but his debt views are very solid. Pay it off and forget about it. Also, your phuking interest rate is awful. The jew put it on the jew when that mortgage was put together. Holy chit.
Sauce:
My primary residence is paid in full
My multiple rental properties are paid in full
Srs, vry srs.
Sauce:
My primary residence is paid in full
My multiple rental properties are paid in full
Srs, vry srs.
05-20-2024, 06:57 AM
#12
Why not consult a fee-only financial advisor to tell you? There may be major tax implications you're missing out on.
05-20-2024, 07:22 AM
#13
Didn’t you have a mortgage in the 2-3%? Why would you sell that property or pay that off early?
Big oof on the 7%, I thought your people looked out for each other
Big oof on the 7%, I thought your people looked out for each other
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05-20-2024, 07:40 AM
#14
Originally Posted By Lefticle⏩
Now that I have a 2nd kid on the way, going full dave is more and more tempting for the peace of mind. Might also live longer cuz I’d likely have almost zero stress when it comes to keeping my job as well. I’m completely aware it doesn’t result in the highest possible return, but it sure would be nice to not worry about anything happening ever.
Rate on current house is 7.3% and payment is just under $5k/month. If I sell the stocks in my taxable brokerage account and my other real estate, I’ll be able to completely pay off my primary residence. As of this instant, after closing costs and taxes, it would leave me with a fully paid off home worth $850k and about $300k in retirement accounts.
Or I just stay leveraged for max gainz. Maybe try to keep this going for 5 more years until I’m 40 then pay it off.
Wife is currently against paying it off and wants to stay leveraged. Wat do.
Rate on current house is 7.3% and payment is just under $5k/month. If I sell the stocks in my taxable brokerage account and my other real estate, I’ll be able to completely pay off my primary residence. As of this instant, after closing costs and taxes, it would leave me with a fully paid off home worth $850k and about $300k in retirement accounts.
Or I just stay leveraged for max gainz. Maybe try to keep this going for 5 more years until I’m 40 then pay it off.
Wife is currently against paying it off and wants to stay leveraged. Wat do.
Keeping a 7% mortgage is absolutely fcking retarded
Even if you get a 10% growth on stock market, you have to pay what? 20-30% taxes? So it's coming out to the same thing
It's literally like saying no to a guaranteed 7-8% growth to opt for a chance at a 7-8% growth with a risk of losing the same percentage
leveraging makes sense when you have a 2% rate. These current mortgage rates of 6-8% makes zero sense to not pay cash for a house
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05-20-2024, 07:41 AM
#15
Originally Posted By cavillac⏩
At that interest rate I personally would pay it off. The opinion I've heard of people that have paid their mortgage off even if the numbers didn't make sense have overwhelmingly been glad they did
nobody ever considers that stock market gains are taxed…
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05-20-2024, 07:45 AM
#16
Originally Posted By nutsy54⏩
I already invest way more than that each month. HHI is around $450k.
YES!
(Coming from a debt-free, paid-mortgage millionaire who got here with Dave's advice).
"Max gains" happen when you can pour $5K+ into investing each month…
(Coming from a debt-free, paid-mortgage millionaire who got here with Dave's advice).
"Max gains" happen when you can pour $5K+ into investing each month…
Originally Posted By r32gojirra⏩
Not fair on the kid to feed it rice and beans
Nor to expect others to pay for its existence
Why did you get stung for such an expensive mortgage, 7 % is crazy
Nor to expect others to pay for its existence
Why did you get stung for such an expensive mortgage, 7 % is crazy
Originally Posted By IPoopStandingUp⏩
Great deal on the house. Family growing. Can always refinance out of it.
Why did you take such a terrible loan?
Originally Posted By JackyChin⏩
The rental is great for write offs.
Why not consult a fee-only financial advisor to tell you? There may be major tax implications you're missing out on.
Originally Posted By IlChosenOne⏩
Yeah that's another house which is now a rental. Could sell it and throw the equity at the new house.
Didn’t you have a mortgage in the 2-3%? Why would you sell that property or pay that off early?
Big oof on the 7%, I thought your people looked out for each other
Big oof on the 7%, I thought your people looked out for each other
See title.
Always Neg Back Crew.
05-20-2024, 07:55 AM
#17
currently maxing my registered investments
anything in excess i throw it at the mortgage
some will tell you you are missing out on greater returns but i think i will never regret having my property paid
it's a personal choice
consulting a financial advisor who you trust would be a wise decision too
anything in excess i throw it at the mortgage
some will tell you you are missing out on greater returns but i think i will never regret having my property paid
it's a personal choice
consulting a financial advisor who you trust would be a wise decision too
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05-20-2024, 07:56 AM
#18
I'm a huge fan of no debt. Even on the off chance your vested capital is returning more than 7.3, for me, the decreased stress of no mortgage is usually always worth it.
05-20-2024, 08:05 AM
#19
Originally Posted By Aleister_White⏩
My FA recommends I stay leveraged.
currently maxing my registered investments
anything in excess i throw it at the mortgage
some will tell you you are missing out on greater returns but i think i will never regret having my property paid
it's a personal choice
consulting a financial advisor who you trust would be a wise decision too
anything in excess i throw it at the mortgage
some will tell you you are missing out on greater returns but i think i will never regret having my property paid
it's a personal choice
consulting a financial advisor who you trust would be a wise decision too
Originally Posted By Victarion⏩
I hear that. I will absolutely make more thant 7.3% if I stay leveraged and nothing catastrophic happens. Maybe even if something catastrophic happens. But I feel there is something to be said for the psychological benefit of being debt free.
I'm a huge fan of no debt. Even on the off chance your vested capital is returning more than 7.3, for me, the decreased stress of no mortgage is usually always worth it.
See title.
Always Neg Back Crew.
05-20-2024, 08:13 AM
#20
Originally Posted By Lefticle⏩
I hear that. I will absolutely make more thant 7.3% if I stay leveraged and nothing catastrophic happens. Maybe even if something catastrophic happens. But I feel there is something to be said for the psychological benefit of being debt free.
You're not considering taxes. 10% growth in stock market after taxes is same thing as 7%
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05-20-2024, 08:30 AM
#21
Thats a tough one bro. 7% interest is high man. I am of the camp that says I will borrow as much money as I can sub 2%. And borrow as little as I can (none) over 5%.
I assume that 5k per month includes PPI and taxes? If not, thats a high mortgage on a property that is sub $1M.
I assume that 5k per month includes PPI and taxes? If not, thats a high mortgage on a property that is sub $1M.
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05-20-2024, 08:31 AM
#22
Originally Posted By CosmicGate0289⏩
No. You're assuming all of my gains are realized each year, which is not the case.
You're not considering taxes. 10% growth in stock market after taxes is same thing as 7%
See title.
Always Neg Back Crew.
05-20-2024, 08:33 AM
#23
Originally Posted By lockdev⏩
Lots or people saying "piece of mind". What actual piece of mind is everyone talking about? Having money in the bank is way more piece of mind for me. If the chit hits the fan, you are still on the hook for property taxes and if you dont pay those…………….
At 7%, yeah, totally do it.
Hell, even at 5% I'd do it. The piece of mind is worth far more to me than the difference in return.
Hell, even at 5% I'd do it. The piece of mind is worth far more to me than the difference in return.
The piece of mind is all a figment of your imagination. Real piece of mind comes from making great decisions, living below your means and having high liquidity.
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05-20-2024, 08:33 AM
#24
Originally Posted By donblaximus⏩
I like this idea.
Thats a tough one bro. 7% interest is high man. I am of the camp that says I will borrow as much money as I can sub 2%. And borrow as little as I can (none) over 5%.
I assume that 5k per month includes PPI and taxes? If not, thats a high mortgage on a property that is sub $1M.
I assume that 5k per month includes PPI and taxes? If not, thats a high mortgage on a property that is sub $1M.
And yes, it's about $4900 and that includes taxes and insurance.
Originally Posted By donblaximus⏩
This is another good point that's tough for me to get around. I could hang on to the extra ~$600k and keep it invested and have it if I need it. If SHTF, I can survive for a long time off of that, even with the current mortgage.
Lots or people saying "piece of mind". What actual piece of mind is everyone talking about? Having money in the bank is way more piece of mind for me. If the chit hits the fan, you are still on the hook for property taxes and if you dont pay those…………….
The piece of mind is all a figment of your imagination. Real piece of mind comes from making great decisions, living below your means and having high liquidity.
The piece of mind is all a figment of your imagination. Real piece of mind comes from making great decisions, living below your means and having high liquidity.
See title.
Always Neg Back Crew.
05-20-2024, 08:34 AM
#25
Originally Posted By Lefticle⏩
No. You're assuming all of my gains are realized each year, which is not the case.
you will pay taxes on it at some point is my point
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05-20-2024, 08:35 AM
#26
Originally Posted By Lefticle⏩
Your FA recommends you stay leveraged at 7%?? Fire him/her. They are looking out for their best interest since they are more than likely charging you an AUM fee which goes down if you take your investments out of the market and put it towards the house.
My FA recommends I stay leveraged.
I hear that. I will absolutely make more thant 7.3% if I stay leveraged and nothing catastrophic happens. Maybe even if something catastrophic happens. But I feel there is something to be said for the psychological benefit of being debt free.
I hear that. I will absolutely make more thant 7.3% if I stay leveraged and nothing catastrophic happens. Maybe even if something catastrophic happens. But I feel there is something to be said for the psychological benefit of being debt free.
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05-20-2024, 08:36 AM
#27
Originally Posted By donblaximus⏩
about to say same thing
Your FA recommends you stay leveraged at 7%?? Fire him/her. They are looking out for their best interest since they are more than likely charging you an AUM fee which goes down if you take your investments out of the market and put it towards the house.
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05-20-2024, 08:37 AM
#28
Originally Posted By Lefticle⏩
I would try to refinance out of that 7% ASAP. Also need to model out the tax implications of selling parts of your portfolio to pay off home. A fiduciary could model that out.
I like this idea.
And yes, it's about $4900 and that includes taxes and insurance.
This is another good point that's tough for me to get around. I could hang on to the extra ~$600k and keep it invested and have it if I need it. If SHTF, I can survive for a long time off of that, even with the current mortgage.
And yes, it's about $4900 and that includes taxes and insurance.
This is another good point that's tough for me to get around. I could hang on to the extra ~$600k and keep it invested and have it if I need it. If SHTF, I can survive for a long time off of that, even with the current mortgage.
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05-20-2024, 08:43 AM
#29
Originally Posted By donblaximus⏩
I hear you. Its a little more complicated than that.
Your FA recommends you stay leveraged at 7%?? Fire him/her. They are looking out for their best interest since they are more than likely charging you an AUM fee which goes down if you take your investments out of the market and put it towards the house.
a) He believes rates will drop and I should just hold out for now and refinance in a bit. The 7.3% rate mortgage is still a fairly small percentage of my monthly income. It depends on the month, but it's less than 15% of my gross income on average. In the meantime, I should just bite down and pay the higher rate and my investments will still outperform. My mortgage broker buddy is even telling me to hold out for at least 6 months.
b) I won't get into details, but we currently have an agreement and I'm not paying him anything at the moment. So he has no financial interest in this until further down the road. I can leave at any time with no penalty.
See title.
Always Neg Back Crew.
05-20-2024, 08:47 AM
#30
Originally Posted By Lefticle⏩
Yeah makes sense. Time will tell you what to do and when.
I hear you. Its a little more complicated than that.
a) He believes rates will drop and I should just hold out for now and refinance in a bit. The 7.3% rate mortgage is still a fairly small percentage of my monthly income. It depends on the month, but it's less than 15% of my gross income on average. In the meantime, I should just bite down and pay the higher rate and my investments will still outperform.
b) I won't get into details, but we currently have an agreement and I'm not paying him anything at the moment. So he has no financial interest in this until further down the road. I can leave at any time with no penalty.
a) He believes rates will drop and I should just hold out for now and refinance in a bit. The 7.3% rate mortgage is still a fairly small percentage of my monthly income. It depends on the month, but it's less than 15% of my gross income on average. In the meantime, I should just bite down and pay the higher rate and my investments will still outperform.
b) I won't get into details, but we currently have an agreement and I'm not paying him anything at the moment. So he has no financial interest in this until further down the road. I can leave at any time with no penalty.
For FA…..Ive realized what I wanted was a fiduciary and also someone in which I am their smallest client…..not their largest. Same as real estate. I want the cheapest house in the best neighborhood. not the other way around. So if I am in a $2M home, I want my neighbors to be $3-5M.
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