Should I Pay Down My Mortgage Or Buy Stocks?

"if you pay down your credit cards you're getting a 15 to 20 to 25% return because your credit card company is costing you 15 20 to 25% maybe even 28% nowadays on your credit card rate in which case you got to pay down the credit card debt before you start worrying about investing your money into stocks or real estate"

"same thing when it comes to your student loans or your auto loans those are liabilities that really are not producing any more value for you I mean hopefully your student loans got you a good career I don't know if I did or I didn't but hopefully it did and your car loan is for a car that's losing value each and every day so you want to pay those things off more aggressively and yeah even though you could potentially get a better return in the stock market than paying down these lower interest rates consumer debts at the end of the day that return in the stock market is not guaranteed versus getting that 6 to 7% return of paying down your auto loan or your student loans is a guaranteed return"

"when it comes to your mortgage it's a little bit different and the reason why is because when you pay down the mortgage you are building equity in your home and this one is still unique because I don't like to consider the home that I live in an investment"

"no wealthy person in the history of time talks about how they built wealth by paying off their mortgage they talk about how they built wealth by inves investing in the stock market or they talk about how they built wealth by investing in real estate that are rental properties not that they live in or they talk about how they built wealth by investing in their own business or other people's business ideas that's where people build wealth"

"if you're going out to buy a home make sure you can buy a home that you can afford that means you got to afford the down payment you got to afford the monthly payment and you got to be able to afford the monthly costs and still be able to keep continually invest your money into other assets because those other assets are what's going to make you rich"

"if you have a 2 and a half% mortgage or a 3% mortgage or a 3 and a half% mortgage it's a different thought process than somebody who has an 8% mortgage rate because now you have the ability to put your money into a highin savings account at the very least and at the time of we recording this video there are high interest savings accounts that are paying 4 and a half to 5% a year in interest so if you have extra money and you put into a high interest savings account that's paying you 5% interest and your mortgage is 3% well now the least risky option is to take that extra money put it into the high interest savings account let that spit out 5% and then you take that extra money and use it to pay down your 3% mortgage but this is where again now if you have a 7 or 8% mortgage now it's a different question"

"remember the historical stock market return has been 10% for the last century that doesn't mean that the stock market goes up by 10% every year that means some years the stock market will go up more than 10% some years the stock market will go up by 10% some years the stock market will go up by less than 10% and some years the stock market is going to fall and so now if you have a 7 or 8% mortgage and the average stock market return is just a little bit higher than that well now that risk to reward rate ratio becomes a little bit more slim because now you're taking on more Risk by investing your money into the stock market but that reward of the average 10% isn't that much bigger than paying down your mortgage of 7 or 8%"

"if you're saying I'm going to invest my money into my own business where I can get a 200% return well now you have a much bigger risk to reward ratio difference between that and paying down your six or seven or 8% mortgage"

"if you've never invested your money before and you have no experience about how to put your money in the stock market you don't even know how to open a stock brokerage account you don't know how to start investing your money in real estate you've never started a business before and now you're trying to decide well should I invest my money or pay down my mortgage well if you come to the conclusion that you would like to invest yourone money don't just go out and dump all of your extra money into Investments because you don't have any extra experience okay you can kind of do a blend here where you take the extra money you put some of it towards your Investments as you learn and get more comfortable with it and get more experience with it while you're taking the extra money and you're putting it into your mortgage that we can pay that off more aggressively"

"the way you become wealthy is not just by stacking cash that's good that you're saving cash that's good that you're stacking cash that's part one but now you want to do part two which is convert this cash into an asset that's actually going to pay you for owning it"