Thanks for your comments, as well

@totaltransformation – Risking $1,000 a month on a possible 8% return instead of a guaranteed after-tax ROI of 5% by paying down mortgage debt is NOT such a “Duh” decision. If you do get 8% you must pay taxes, and if you live in a state like CA, then after taxes you’re about even. Plus you have slippage… transactional fees etc for the investment / trade. So risking your $1,000 a month on 8% instead of a guaranteed after tax return of 5% is not always so smart, and a bad example.

People with double-digit interest rates on credit card debt, especially the many folks paying 20-30%+ interest, are not likely to find a better investment opportunity in their entire life than inside their own liability column. Every dollar in debt paid off is a guaranteed after tax ROI of 20-30%. Warren Buffet, Peter Lynch and Sir John Templeton would all agree and even George Soros couldn’t produce a better ROI over time. What makes you think someone in debt could pull off such a stunt?

I think Dave Ramsey provides sound advice for most people, and while I think it’s better to expand your means and increase your income instead of living like a popper, his advice has proven to help many hundreds of thousands of people to stop paying interest and start earning interest, and that’s the key.

If you’re carrying debt and it buys you an asset that truly pays the interest for you when you account for taxes and expenses, then no one can argue with your financial intelligence. Good debt can make you wealthy. Look at Donald Trump!

But if you are paying interest on debt and it’s even questionable that you’re money is doing better somewhere else instead of paying off the debt, then you’re probably only fooling yourself.

BTW – I have made my living in the stock market trading stocks and options. In fact, I’ve made more money doing that than anything else, but I also know I am a RARE bird. 95% of the people who go into the market get their head chopped off and lose, period. If you are messing around thinking you will get rich fast, then I wish you luck and offer one solid piece of advice: BUY, STUDY & IMPLEMENT the book “Trading for a Living” by Dr. Alexander Elder. The man is a great teacher (I trained under him myself) and the book is priceless. Forget about buying all the fancy trainings, seminar, videos etc, and just buy the book for $20. After spending over $50k on my own training, I can say the most important lessons are inside that one single book. Best wishes!

Last but not least, if you’re guilty of carrying high interest credit card debt, then be a smart investor and invest for the highest, most probable ROI: In your balance sheet, on the right side… and Get Out of Debt FAST! [link removed]

STOP Paying Interest & START Earning Interest ASAP!

to each their own. In my parents case it was wise for them to pay off their mortgage because they have no knowlege of stocks and investments.

In my case it maybe be wise. Some people just like the simple no risk life. Younger people tend to take more risk because time is on their side.

Unless more people are educated about the market, many will go the debt free route because it take no risk