I disagree with Dave. There is absolutely nothing wrong with getting a low mortgage rate and putting that money in the market. I'd do it on a 10-year mortgage and a rate under 3%. Its not as bad or far-fetched as Dave is making it soumd. Lol
Here's some advice. If you're a new home buyer, DO save at least 20% for a down payment. That PMI is a killer. Also, I'm not going to tell my recent college grad daughter she needs to pay cash for her first house. I'd like to see her move out before she's 40. LOL!
I’m a millionaire and I have a mortgage at 2.75% so I guess I’m an outlier to Dave’s “airtight” research. Dave is doing what most people do with statistics. He’s using them incorrectly to manipulate people into believing his narrative. He didn’t say no millionaires had mortgages, he said they didn’t identify that as being the primary mechanism that caused them to be millionaires.
Yeah, Dave argues against his own logic. If you save 15% into mutual funds in baby step 4, that's essentially "borrowing against your house to invest" by his logic. So... probably almost everyone in his study did that.
He said the vast majority of millionaires, not everyone. What he said is that people like you would be millionaires regardless of your home or not. You didn’t leverage the 3% difference into wealth. Paying 2.75% on interest to a 300k mortgage vs gaining $12,000 on a 10% return a year. Is like $3000 gain in a year. Not taking risk and tolerance into account. Obviously there are outliers that instead of paying for home cash they use those $500k to start a business and they become millionaires like that sure. But most people are working 9 to 5 and investing on retirement accounts etc.
yeah. his study doesn't tell the story he's telling. Anyone who is a millionaire strictly off their "well funded" 401k is likely 50+. Probably 60 or even 70+ years of age. I'd surmise that most of those people in his study were 50-90 years old and had a mortgage and either made all the payments or maybe got it down pretty low balance and then paid it off.
I disagree with Dave. There is absolutely nothing wrong with getting a low mortgage rate and putting that money in the market. I'd do it on a 10-year mortgage and a rate under 3%. Its not as bad or far-fetched as Dave is making it soumd. Lol
People can buy their house in cash and then the additional money that they make, that can use that to invest! Why don't people think of that?
Here's some advice. If you're a new home buyer, DO save at least 20% for a down payment. That PMI is a killer. Also, I'm not going to tell my recent college grad daughter she needs to pay cash for her first house. I'd like to see her move out before she's 40. LOL!
A house (personal residence) is a liability, not an asset. It's not a business debt.
Robert Kiyosaki fan? His definition of asset is wrong. An asset is something that has value, not something that generates income.
I’m a millionaire and I have a mortgage at 2.75% so I guess I’m an outlier to Dave’s “airtight” research. Dave is doing what most people do with statistics. He’s using them incorrectly to manipulate people into believing his narrative. He didn’t say no millionaires had mortgages, he said they didn’t identify that as being the primary mechanism that caused them to be millionaires.
Yeah, Dave argues against his own logic. If you save 15% into mutual funds in baby step 4, that's essentially "borrowing against your house to invest" by his logic. So... probably almost everyone in his study did that.
You're way past Dave Ramsey's demographic. You've gratuated and can recognize the limits in his point of view.
He said the vast majority of millionaires, not everyone. What he said is that people like you would be millionaires regardless of your home or not. You didn’t leverage the 3% difference into wealth. Paying 2.75% on interest to a 300k mortgage vs gaining $12,000 on a 10% return a year. Is like $3000 gain in a year. Not taking risk and tolerance into account.
Obviously there are outliers that instead of paying for home cash they use those $500k to start a business and they become millionaires like that sure. But most people are working 9 to 5 and investing on retirement accounts etc.
@@patienceisalphafacts
yeah. his study doesn't tell the story he's telling. Anyone who is a millionaire strictly off their "well funded" 401k is likely 50+. Probably 60 or even 70+ years of age. I'd surmise that most of those people in his study were 50-90 years old and had a mortgage and either made all the payments or maybe got it down pretty low balance and then paid it off.