I'm not a big Suze fan, but she's 100% right on Debt for the AVERAGE person. If you're in debt, you're WORSE than "Broke" and that's no way to be approaching retirement. Broke means you're at $0, but having Debt means you own MORE than you haven't even earned yet, so you're WORSE than broke. The idea that you can "invest at 10% and have a 3% mortgage let you "earn" 7% more" is an ABSOLUTE LIE!!! The ONLY time that "formulate" actually works is if you have the CASH to pay off the house and you invest that lump sum while also taking out a mortgage. OTHERWISE, your 'pittance" of a monthly investment "at 10%" is earning a little bit of money. But your mortgage bank is calculating your monthly interest (loss) based on the entire outstanding mortgage balance, even if it's at 3%. So while you're excited about earning $5-$100 a month at 10%, the mortgage company is charging you $600-$700 a month, even if it's "only 3% interest"... 3% on a HUGE number. Any "financial advisor" who tells me to keep your mortgage and "invest the difference" is getting fired immediately.
Suze's schtick has gotten old. Out of touch... Save $20,000,000 and retire at 90. She plays to the mis-informed... She used to be fun, but now she just ain't happening. I do agree that spending down assets is scary...
Good video
I'm not a big Suze fan, but she's 100% right on Debt for the AVERAGE person. If you're in debt, you're WORSE than "Broke" and that's no way to be approaching retirement. Broke means you're at $0, but having Debt means you own MORE than you haven't even earned yet, so you're WORSE than broke.
The idea that you can "invest at 10% and have a 3% mortgage let you "earn" 7% more" is an ABSOLUTE LIE!!! The ONLY time that "formulate" actually works is if you have the CASH to pay off the house and you invest that lump sum while also taking out a mortgage. OTHERWISE, your 'pittance" of a monthly investment "at 10%" is earning a little bit of money. But your mortgage bank is calculating your monthly interest (loss) based on the entire outstanding mortgage balance, even if it's at 3%. So while you're excited about earning $5-$100 a month at 10%, the mortgage company is charging you $600-$700 a month, even if it's "only 3% interest"... 3% on a HUGE number.
Any "financial advisor" who tells me to keep your mortgage and "invest the difference" is getting fired immediately.
Suze's schtick has gotten old. Out of touch... Save $20,000,000 and retire at 90. She plays to the mis-informed...
She used to be fun, but now she just ain't happening.
I do agree that spending down assets is scary...
The arbitrage opportunities are few and her audience is not the rich