We're 46 and 41 years old, married, and currently working on step four of the financial order of operations. Our current mortgage is 7.62%, and we plan on refinancing. Should we worry more about investing or paying off the house once we finish step

four? Um, we're planning on refinancing. I want to know more about this planning on refinancing because that adds in a unique variable.  But even let's assume that refinancing is not something they're even thinking about, even at 7.62%. One of the questions

I have, Melissa, is at 46 and 41, if you're on step four, does that mean you're in the beginning phase of your financial journey? You've been working through the financial order of operations and you're just now getting to step four, meaning you haven't

really been building up or saving or investing for the future thus far, outside of just doing your employer match? If that's the case, I would argue at 46 and 41, you're still young; you still have time on your side. But it's different than someone who's in

their 20s and 30s. You likely have to make up some ground if you haven't been saving, if you haven't been building up a pot of assets that one day can hopefully provide for you and build and create a financially independent

living for you. So if that's your story, in my opinion, I think you really got to be focused on how can I save and invest and grow? And save and invest and grow? And save and invest and grow? Because there are likely going to be opportunities for you if interest rates

Continue to fall. You're at 7.6 right now. What was the stat you said, uh, this morning? That yeah, I read... and that's why I wouldn't take refinancing off the table, is because I read an article last week that we actually, for a

brief period of time now... you know how all markets are, they bob up and down a little bit, so you get some variability in it. But we went below 6% for a week or two on mortgage rates. So if you think about, you know, your 7.6, the

potential that you could drop it below six with a refinance... this is why I don't... I don't like people thinking that paying off your mortgage is a step three item. It's not, because I mean we've had more periods where, yes, rates are not going

back to 2.5%, but I also think they're going below 6% very easily, and you're at... some point, Melissa, you're going to need an army of dollars so you don't have to work so much with

your back, your brain, and your hands. So we've got to get the Roth built up, we've got to get the 401(k)s built up, because that is your army of dollars. I don't want you getting to retirement age and not having any investment assets. You can be debt

free, but you can't... you can't eat the house. I mean, it's... it's just one of those things; it doesn't pay the bills. So we have to get the army of dollar bills. So that's why, for me, I think that when you go from step four, which is emergency

Now, you're going to go immediately into step five, and you're going to look at the health savings account, the triple-tax advantage. You're going to look at the Roth IRA. Then, step six is going to be looking at maximizing retirement.

In the middle of all this, if you pay attention and rates have dropped—and we have a show coming out on how to deal with debt; it'll be coming out in the next month because I was reviewing some show notes this morning—

and this is one of the things we cover. We even have a refinance tool out there on the website right now that I would encourage people to use. It is out there right now. Right, absolutely.  m.com—I just see Megan talking, and when I...

Gosh, I've got a front-row seat! And I didn't mean to... We have to put a shade right there where he can't see her. But it is one of those things. I want you to go out there and use the tools we've put

for you. But you need to have dual functions going on: How do you get the mortgage paid down with a better rate, and then also make sure you're building assets in the background? But I would play the other side of the coin, so that

was one option that you had.  Not started building your assets; let's say perhaps this is something different. Maybe you have been doing all the stuff you're supposed to be doing, and you have been building up an army of dollar bills, and you have a pretty

a healthy asset base underneath you. Uh, but something happened; you had some sort of emergency and you had to dip into step four to address it, and now you're rebuilding step four. Well, if that's the case, and you're at age 46, you are at

that unique stage where, if you have been doing all the things you're supposed to be doing and your assets are built to a level where you're on the trajectory to reach financial independence, I think what you have to define is, "What is my number? What

is the thing that I'm working towards?" And have the steps that I've been taking thus far been moving me in a path to that end goal, to that finish line? If that's the case, and you've done the financial order of operations and once

you finish step four, you're going to be able to zoom right through steps five and six and get into step seven. Then, yeah, if one of your goals is being debt-free and you want to prioritize paying off that mortgage as you get into

step eight and step nine, there's nothing wrong with that. But you have to make sure that your financial foundation is solid enough that it makes sense for you to do that, and that's going to depend very much on what you've been doing thus far in your financial

How To Handle a High-Interest Mortgage

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Refinancing a Mortgage at 7.62% and Prioritizing Investing vs. Debt Payoff

Couple (46 and 41) is on step four of their financial order of operations and considering refinancing their 7.62% mortgage.

Refinancing adds a variable to the decision of investing vs. paying off the house.

Question raised about whether they are in the early stages of their financial journey at their age.

At 46 and 41, they still have time, but need to catch up if they haven't been saving/investing significantly.

Recommendation to focus on saving and investing aggressively, especially if interest rates continue to fall.

Analysis of Mortgage Refinancing and its Impact on Financial Planning

Mortgage rates potentially dropping below 6%, making refinancing attractive.

Paying off the mortgage shouldn't be a priority over building investment assets.

Need to build significant investment assets for retirement (army of dollars).

Focus on Roth and 401(k) to build investment assets for financial independence.

Being debt-free doesn't guarantee financial security; investments are crucial.

Next Steps in Financial Order of Operations and Utilizing Available Resources

Progress to steps five and six: health savings account, Roth IRA, and maximizing retirement.

Upcoming show on debt management and refinance tool available on the website.

Encouragement to use available tools for refinancing and asset building.

Emphasis on dual approach: mortgage payoff with better rates and simultaneous asset building.

Alternative Scenario:  Existing Asset Base and Defining Financial Goals

Scenario where assets are already built, but an emergency required using step four funds.

At age 46, focus shifts to defining financial independence goals and evaluating progress.

Determining if current steps align with long-term financial goals.

Defining the target number and assessing progress towards financial independence.

If on track, steps five, six, seven can be completed quickly.

Prioritizing Mortgage Payoff Based on Financial Foundation

Prioritizing mortgage payoff in steps eight and nine is acceptable if the financial foundation is strong.

Decision depends heavily on previous financial actions and current financial health.

How To Handle a High-Interest Mortgage

How To Handle a High-Interest Mortgage

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