Comments about ‘Dave Ramsey says: Spending too much money for date night’

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Published: Monday, April 8 2013 12:30 p.m. MDT

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A Guy With A Brain
Enid, OK

What I'd like to ask Dave Ramsey is, is it ever a good idea to wipe out your IRAs in order to pay off your home early? I could do it and probably still keep $20,000 in the bank.

That might sound foolish but the way our country's morals and national debt are going, there's NO way our economy is going to remain strong....financial Armegeddon/hyper inflation is only a matter of time and when that happens, whatever massive nest egg anyone has developed will be worthless.

Why not pay off the home and own it outright AND be totally, 100% debt-free? I can do all this within 2 years but it would cost me wiping out my IRAs. I'd also still have a government pension in place of over $50,000 a year at the age of 50 and a wife with a HIGHLY marketable skill (a bachelor's degree in nursing starting out at $50-70K a year).

THAT'S what I'd like to ask Dave Ramsey.

Dave Ramsey seems to have faith in the long term economic survival of our country. I do not.


Mililani, HI

A Guy With A Brain,

What you're saying is true, regarding those with large nest eggs losing value if there's hyper inflation. Remember though that both your IRA and your mortgage are backed by US dollars. Both of them would be affected by the inflation, but having debt during times of inflation actually is desirable. You are locked into low interest rates and your payments are fixed while the costs of everything else is skyrocketing.

If there's hyper inflation your mortgage will be the one that you'd want to keep. Inflation would make your fixed monthly payments that was started before the hyper inflation, seem so small compared to the income you would be receiving from different sources. Also depending on where your money is in the IRA, your account could possibly grow/stay on par with the hyper inflation.

I would advise against taking out your IRA, especially if you're pulling all of that taxable income in one/two year(s). It's much better on your finances to pull it out slowly to keep your marginal tax bracket low.

Just my $.02

O-town, UT

Amen A Guy With A Brain,

Make getting your house paid off a priority. Getting out of all debt is a very good idea! Putting that much trust in those con artists on Wall Street is a bad idea. They speculate to drive up prices, purposely bundle bad assets and sell them, privatize profit and socialize risk (bailout), etc. They are criminals, but since they are in all levels of government and in both parties, they write the laws and never face any consequences. Do you want to put all your trust with your money with these clowns?

I think you are right in getting out of debt first and then getting highly involved in your investing by only putting money in responsible companies and safe bonds. I agree with Coug though, I wouldn't empty the IRA because you want to build on the balance with interest. Just put some money away to pay off the mortgage sooner. With rising health care prices and our benefits being pilfered, we will be working into our seventies anyway. GOOD TIMES!

Farmington, Utah

The wisdom of paying off your mortgage sooner depends on the value of your home and when you bought it. If you bought it when home prices were lower and it still is worth what you initially, then perhaps you should pay it off quickly, but not by decimating your retirement. We bought our last home when prices were high and felt that we did not want to keep putting money into a house that already had lost 25% of its value. We sold it, and will now buy low,
pay cash and have no mortgage. Whew!

Nashville, TN

Guy, I'm not sure about your logic here. You're basically talking about the collapse of the American economy - "financial Armegeddon" in your words - and yet, you think if this happens you'll still receive your fat government pension? Fat chance!

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