[Music] The next one is from Winnie defu. Oh man, you that's the first time I think I've heard that. That is awesome. Thought you would appreciate that. It says planning to retire early starting in about 10 years. We want to pay off our home before early retirement. Would it be smarter to pour all our money into investments and pay off the home at the end, or something else? Did Winnie defu give their age? Did not. But Winnie defu, if you're out there, if you'd like to give us your age to give us some more content or... I'm going to let you say 'cause I know what you're going to say, but I let me give the conservative... Let me give the conservative answer and then you can give the maximizer... Answer. I'm saying age is one of two variables we need to know. Well, it's... B picks on me because I do think duu. I love that name. That's why I keep saying it, but it's... There. I think

it is the right thing to try to be debt-free before you walk through that threshold of financial independence because there's already going to be some strange psychological things that happen the first time you leave your job. Stock market gets its teeth kicked in you're going to like whoa. It's not one of those things because we all cope in our own way but for most people who are working when the stock market gets beaten up they're like man I guess I'll just you know keep my head down. I'll keep working hard. It hits a a little differently once you're actually living off those assets and you see them go down 20% or even more so that that's the first thing. So I like you being debt-free because it really it kind of takes that pain out of that volatility to a lot of ways but I I've said and when I write when I when I did millionaire mission when I've talked about this on the show about the financial order of operations I do think there's a difference between people.

under age 45 because you're get wealthy behaviors versus people who are greater than 45 is stay wealthy behaviors. Because we all know the typical millionaire crosses that threshold around 49 years of age or saving an investing for 27 to 28 years, so it's right in that time. Plus when you overlay that with the wealth multiplier, if you go to money.com resource to see what every dollar has the potential to come become for you, you see that there is that balance between what money can do while you're young versus when you get older. It's just not as much of a tradeoff. Now what B is going to allude to, and this is something something we've talked about because I had my own Arbitrage situation M 25% mortgage and my cash is making 5%. B's like you should never pay that loan off and and here I am sending extra money so we we argue about this and I will tell you it's even gotten worse is because we own some

commercial real estate together. And I've told Bo, in 10 years, I want to have this loan paid off. And he's and I even negotiated with the bank to let us give them extra money every year so I could make that goal happen. But Bo, what's the rest of the story on what a maximizer does? What we recognize is that if you have a mortgage that's super super low interest, let's say that it's a 2 and a half, three, 3 and a half percent mortgage, it's very easy to go deploy your dollars elsewhere to earn more than that. Like every dollar you apply to that mortgage saves you that interest rate and interest. However, if I could go deploy that dollar and go earn 7 percent, 8 percent, 10 percent per year, there's a good chance that even if I wanted to be debt-free in 10 years, even if I wanted to write a check to pay for the mortgage, it would be a more optimal solution, a more efficient way to get there by investing those dollars to

grow and then once the account hits the size of the remaining mortgage, then pay it off. The one variable defu we don't know is what's your mortgage interest rate because my advice changes based on that 2 and a half 3%. I think it's really really hard to justify not building up like investing the dollars letting the pot of money grow up then having a check to write. If you are someone who bought the house recently or refinanced recently for some reason and you are at like a 6 and a half seven and a half, well now the mathematics becomes a lot more difficult. But for someone sitting in like a super super low interest mortgage, if your goal is to bet be debt free, I would argue that the most effective and efficient way to get to debt free would be to deploy those dollars elsewhere and then pay off the mortgage AG instead of paying it off through time. Fortunately, I have a business partner that loves math too and recognizes that's what makes sense on the commercial property B has convinced.

me the ability to be debt-free is just as good now. I just I do think it's a little different on the commercial, but I think for your primary mortgage, especially going through the threshold of being in the financial independence, meaning you're living off of your assets. It comes down to risk too, so don't don't discount that too much because we all know the say. I've said it many times, pigs get fat, Hogs get slaughtered. There is a threshold where you might be taking on too much risk, and it's not all about the mathematics. There's also emotions, and you have to know thyself to figure out what's the right decision for you.

What Is the Best Route to Take If I Want to Retire in 10 Years? (Invest or Pay Off the House?)

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