ilmscore | Prediction Details
"the simple math is if your mortgage is costing you say 5% a year and you can get a 8% return on your investment you can invest your money get a better return pay off your mortgage and have some money in your pocket it's a no-brainer so if you can invest your money get a better return why would you not do that well because investing comes with risk versus paying after mortgage does not because when you pay off your mortgage you get a guaranteed 5% return on your money because now if you paid off a year early you get a guaranteed 5% return versus when you invest your money it comes with risk might go up might go down might go up might go down and so now the question again is what type of Life do you want to live do you want to say you know what I just don't want to have to worry about my mortgage payment I just want to be financially free never have to stress about money and just be okay then pay down the mortgage because now once you pay down the mortgage your biggest expense is gone you own your house free and clear you still got to pay property taxes but at least now the biggest expense is gone and you're going to breathe so much easier when you don't have a mortgage to pay but if you say you know what just breathe I want to live big I want to have the nice stuff I want to have the big things I want to be flashy nothing wrong with that like you I want to have it all okay that's fine then you don't want to be trying to get a 5% return you want to invest this money in the markets you want to invest it in your business you want to invest this in your education you want to invest this in yourself because now you can get a much better return is it riskier absolutely but your mindset is somewhere else right you want to get a different type of return and this is why you're investing into the things that can give you a better return because that's what you want right but you just have to understand that it comes with risk and if you're not comfortable with that then do the first"
By Minority Mindset | August 20, 2024 | Pending
From video
The System is Keeping You Poor - Here’s the Blueprint to Break Free 00:22:26 - 00:24:11
Interpreted Prediction
The decision to pay down a mortgage versus investing depends on individual financial goals and risk tolerance. If investment returns (e.g., 8%) are higher than mortgage interest rates (e.g., 5%), investing can be mathematically more beneficial. However, paying off a mortgage offers a guaranteed return and peace of mind, while investing carries risk. The choice hinges on whether one prioritizes financial freedom and security (pay off mortgage) or aggressive wealth accumulation and a larger lifestyle (invest).

Prediction Details

Topic
Mortgage Payoff vs. Investment Return

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