445-Should we Keep Paying off Our House with Gazelle Intensity or Switch to Saving 15% for Retirement?
Today, we cover this question:
Joshua,
My husband and I love your show and would LOVE IT if you could help us answer a question from your point-of-view.
Facts:
- We're completely debt-free except for our house.
- We make around $130,000 per year.
- We're currently investing 10% for retirement.
- We are dead-set on paying off the house in the next 2.5 to 3 years.
The DILEMMA:
Dave Ramsey suggests saving 15% for retirement for someone in our position. We can do this..but that'll slow down our house payment goal quite substantially (or, in my mind it's substantial, as I want this house paid off TOMORROW!)
The goal after the house repayment is to throw everything we can spare towards investing in retirement funds.
THE QUESTION:
Should we stay strong on our course to pay off the house in 3 years tops only saving about 10% for retirement or do we bump up retirement savings? Ultimately how do I figure out the opportunity cost in each scenario?
Thanks so much!
Taliah
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