I made my last 438 k mortgage payment just now. My bank doesn't seem happy.

Quote from DrPepper:

The main group I hear encouraging people to not pay off their mortgage are financial advisors who want you to dollar cost average your available funds into the market every month. They say that it is much wiser to get the historical 8% stock market return rather than pay off a mortgage that only costs 2-3% after the tax deduction. Of course, the financial advisor benefits financially when you invest more money rather than paying off your mortgage.

If the stock market only goes up, financial advisors are correct. However, recent history has shown that dramatic declines are also possible. Unless your mortgage is severely underwater and you plan to walk away, paying off all of your debts including your mortgage is a very wise decision.
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I have a serious problem with advice to common mom and pops to Gamble in the market.

Banks replaced word "gamble" with "invest".

I as a trader know full well just how inadequate this advice is for average person.
Thanks for explaining it in detail. Telling people to not pay off mortgage and invest/gamble into mutual funds is a predatory advice.
 
Quote from Calculator2:

So I make my last payment and bank that never made a mistake on how much I owe them suddenly starts making mistakes on last few payments. (mistake to their benefit)

I was always polite and patient in correcting these mistakes no matter how long I have to be on the phone. Because I knew I was gonna pay it off soon and wouldn't let it bother me.

Not even a congratulations on my last payment. Not even Thank you It was a pleasure doing business with you for the last 8 years.

Why do I get the feeling that my bank doesn't like people that pay mortgage on time and over the set payment whenever possible. I get the feeling they would be more polite to a deadbeat.
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What is the name of your Bank so i can focus my disgust on a particular bank...

Crike they can't even be nice to you...
 
Quote from DrPepper:

The main group I hear encouraging people to not pay off their mortgage are financial advisors who want you to dollar cost average your available funds into the market every month. They say that it is much wiser to get the historical 8% stock market return rather than pay off a mortgage that only costs 2-3% after the tax deduction. Of course, the financial advisor benefits financially when you invest more money rather than paying off your mortgage.

If the stock market only goes up, financial advisors are correct. However, recent history has shown that dramatic declines are also possible. Unless your mortgage is severely underwater and you plan to walk away, paying off all of your debts including your mortgage is a very wise decision.
More...

My dad is a CFP/CRPC and I have never heard him utter anything like that. Sounds like you have received bad advice from someone looking to take advantage of you unfortunately.
 
Quote from EdgeHunter:

What is the name of your Bank so i can focus my disgust on a particular bank...

Crike they can't even be nice to you...
More...

Citibank :mad:

I could be wrong. Maybe the new business model is to be "robots".

Maybe they teach these new managers "be a robot". The new way of business, be a robot
 
Quote from Calculator2:

Citibank :mad:

I could be wrong. Maybe the new business model is to be "robots".

Maybe they teach these new managers "be a robot". The new way of business, be a robot
More...
Yepper... They have all the Employees listen to this song 8 hours a day on headphones while dealing with customers... worked out REALLY well for CitiBank over the last 3 years... :eek:

http://www.youtube.com/watch?v=rcCS8AK6csg
 
Quote from Algo_Design_Kid:

My dad is a CFP/CRPC and I have never heard him utter anything like that. Sounds like you have received bad advice from someone looking to take advantage of you unfortunately.
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I am sure that there are many ethical financial advisors--I apologize if I insulted anyone. A small minority of the best financial advisors are paid solely for their advice and have no inherent conflict of interest.

However, I believe that the majority are either paid commissions for selling securities or receive a percentage based upon the dollar amount of your funds under management. Unfortunately, they have a financial incentive to encourage you to invest your funds rather than pay off your mortgage.
 
Quote from Calculator2:

I have a serious problem with advice to common mom and pops to Gamble in the market.

Banks replaced word "gamble" with "invest".

I as a trader know full well just how inadequate this advice is for average person.
Thanks for explaining it in detail. Telling people to not pay off mortgage and invest/gamble into mutual funds is a predatory advice.
More...

I don't think the advice is too terrible, because governments tend to want to inflate their currency. You can't realistically save your earnings anymore, so you -have- to take risk. If Congress wanted to control speculation, they'd have to respect the purchasing power of our currency. They don't, and that's why it still makes sense to speculate heavy and hard, and to avoid being "house poor."
 
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