BiggerPockets Money Podcast Should You Pay Off Your Mortgage or Invest? (Best Choice for FIRE)
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Nov 14, 2025 The debate of paying off a mortgage versus investing is explored, highlighting how a paid-off house can lower your FIRE number. A new mortgage calculator is introduced, analyzing various scenarios that show there's no universal answer. Listeners learn who should prioritize mortgage payoff and the emotional aspects of debt. Key insights are shared about tax benefits and risk tolerance, with tailored strategies for both imminent and distant retirement plans, making it a must-listen for anyone pursuing financial independence.
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Investing Often Wins Long-Term
- If you ignore taxes and noise, investing typically beats paying off a mortgage over long periods.
- Account for taxes and current valuations before choosing; raw math can mislead.
Taxes Create A Hidden Spread
- Mortgage interest is often nondeductible now because most people take the standard deduction.
- Investment gains are taxed, creating a tax spread that changes the invest-vs-payoff math.
Model Variable Returns And Taxes
- Plug realistic multi-year return scenarios into your analysis instead of assuming a flat 10% forever.
- Include taxes, different early/late return rates, and itemization effects when modeling choices.
