Tim & Tim discuss whether to pay off your mortgage early or invest, breaking down math, mindset, and goals for 2025's financial landscape.

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Episode Summary

In this episode of the YFP podcast, co-hosts Tim Ulbrich, PharmD, and Tim Baker, CFP®, RICP®, RLP® revisit the frequently asked question: 'Should I pay off my mortgage early or invest the difference?' They discuss how the changing financial landscape, including rising interest rates, market volatility, and inflation, impacts this decision in 2025. They explore the math, emotional factors, and personal financial goals to provide a balanced approach.

What you'll learn in this episode:

• How to evaluate whether paying off your mortgage early or investing the difference makes more sense in today's higher-rate environment.
• Why the math (interest rates, investment returns, tax impact) and the emotion (stress, freedom, flexibility) both matter when making this decision.
• How shifts in interest rates, inflation, and cash flow pressures since 2018 change the calculus for pharmacists in 2025.
• The role of discipline and behavior—why "investing the difference" only works if you actually do it.
• How a financial planner helps balance data and emotion to build a plan that aligns with your goals, values, and risk tolerance.

Mentioned on the Show

• Your Financial Pharmacist
• Book a Free Discovery Call with YFP
• YFP Episode 49 "Should I Pay Off My House Early of Invest?"
• YFP Episode 68 "Pros/Cons of the Dave Ramsey 7 Baby Steps"
• YFP Episode 427: "Passive vs Active Investing: Is the Debate Over"
• YFP Episode 274: "Risk Tolerance vs Risk Capacity (Retirement Planning)"