I realize nothing is guaranteed in the stock market, but I'm 34 so its no big deal to me if things take a hit like they did in 2008. I trust the stock market to give me at the very least a 7% return over the long run, probably better. I refinanced last spring at 3.5%, so while my emotions would LOVE to pay off the house, the logical side of me say's I should maximize my returns for retirement first.
I would consider this point carefully! yes I know all ibbotson data says that... but they always start those charts in 1929! after the crash! pull real numbers and 7% is only standard in long term bull markets... not trying to argue... just dispel false hoods.. like you can't burn pine in woodstove.. also pull a break down of your mortgage so you can see in early term a 50 dollar principal payment in year 2 lets say saves a mortgage payment at end then pull the rate of return that is more guaranteed on that 50 dollar investment... just so you know!
I know nothing is guaranteed, but for me I'm comfortable doing things this way. Believe me, I have several spreadsheets I've created with the loan amortization schedule and several "what if" scenarios that I constantly look at to see what my financial decisions cost me.
As long as you know glad you got the spread sheets and amortization tables... most just go by what some sales man tells them..
i am a Dave Ramsey follower. in my personal and business life. that has worked for me and the beautiful bride of 35 years today. Holy smokes were did the time go?
Well someone has earned a "Happy Anniversary!" That's great, Marty! 35 years- quite the accomplishment, sir! Hope y'all enjoyed the day/evening
Congrats on 35yrs I have to admit I was listening to Dave around the time I started on this mission. I've never read his books or gone to a class, some of his principles defy basic financial logic - but they are intended for an audience that has managed to get themselves into such financial trouble that the "snowball" affect can really work for people with a dozen or more monthly debts. It truly amazed me some of the folks that called in on his show with 10-25k in CC debt, couple car notes, student loans, and the inevitable medical bill - I didn't start in that kind of hole because I always disliked debt, but begrudgingly took it on. If it could just be drilled into folks heads that credit is a tool and not a way of life this country's economy would probably already be booming
Basod, When I say, I am a Dave Ramsey devotee, I mean I have not bought all his things that he says, " hook, line and sinker". For example, never purchase anything on credit that is worth less the next day after you purchase it. IE; cars, furniture, etc. But, I think it is appropriate to purchase things that appreciate in value or don't loose value the day after you purchase it. Debt leveraging on hard assets is not necessarily a bad thing. But, getting rid of that debt as soon as possible is the best option. Thanks all for they kinds remarks on my anniversary. When you think you can't find more love in your heart, you are reminded on a day like yesterday. Boy, did I get lucky. I won that lottery.
Congratulations basod and Minnesota Marty , you both have great accomplishments!!! I'm seven years out on a pay off on a 15 yr. loan @ 2.75%. I had paid off the original mortgage, but needed a new loan to bring a 1880 house up to date. Additions, roof, siding, plumbing, & wiring. The house has been in the family for four generations, we didn't have an indoor toilet until 1968. I don't miss the old two seater outhouse we used as a kid visiting my grandparents.
Several years ago I had enough US saving bonds accumulated to cash them in and pay off my house. It takes several hours to cash in saving bonds because you have to sign them in front of a witness and the bank has to sign them. After I got them cashed I told them I wanted to pay my house off. That's where the wheels fell off, because (evidently) they had never had a payoff where the person retained the house. They had to call the home office to find out how to process the paper work. It seems that the majority of houses are in a perpetual state of having a mortgage.
