I’m On Track to be Debt-Free By 40! (Should I Invest Instead?)

January 25, 2023


JJ has a question about being more aggressive towards his mortgage and paying it off sooner or maxing out both his wife’s Roth and his Roth.

JJ is 32 years old and is on pace to be debt-free including his home by 40, which is an impressive feat. A great resource to check out is our wealth multiplier. You can find this at moneyguide.com. This deliverable shows how powerful your dollars can be. I would encourage JJ to think about the optimization of his financial life, whether he would be better served by putting that money to work for him earning a stated rate of return over the long term or satisfying debt.

I would worry when people are too excited about being completely debt-free because it might mean they’re prioritizing the mortgage more than their future self. Paying off a mortgage before 45 is just a cherry on top of the whipped cream of your financial Sunday, once you’ve already done all you have to do.

JJ should think about the long-term benefits of investing his money and the opportunity cost of paying off his mortgage early, especially with the current low-interest rates. He should also consider the peace of mind that comes with being debt-free and weigh the pros and cons before making a decision.

To learn more about our Wealth Multiplier resource, click here.



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