Canva: Yagi-Studio from Getti Images Signature and EricVega from Getti Images Signature Quick Read Withdrawing from a 401(k) before age 59.5 triggers a 10% penalty plus income tax on the distribution. The median U.S. home price reached $426K in September. That is 63% higher than a decade ago. 30-year mortgage rates now stand at 6.9% despite Federal Reserve rate cuts. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. R ...

President Donald Trump recently floated the idea of a 50-year mortgage as a way to lower monthly mortgage payments and make home ownership more affordable. Although the 50-year mortgage is not a new idea, it has taken on greater meaning in the current housing market. Home prices remain near all-time highs and even though mortgage rates have come down, they’re also much higher than only a few years ago, according to Macrotrends. See Next: I Asked ChatGPT How To Build Wealth for the Rest of Trump’s Term: He ...

Core Insights - A single father from Los Angeles, Dave, is struggling with $140,000 in credit card debt after a family crisis, emphasizing that he has no regrets about the choices made during that time [2][3] - His monthly income is approximately $8,400, with half going to mortgage payments, leaving no disposable income for emergencies [3] - The hosts of "The Ramsey Show" advised against using third-party debt negotiation services, labeling them as scams and suggesting that Dave should focus on increasing his income instead [5] Financial Situation - Dave's credit card debt includes individual balances of $22,000 and $32,000, with interest rates ranging from 25% to 32% [3] - His mortgage payment is temporarily inflated due to unpaid property taxes, but it is expected to decrease by $1,500 in March [4] Advice from Hosts - The hosts highlighted that there is no quick fix for debt and warned against shortcuts through debt relief firms [4] - They encouraged Dave to explore creative ways to increase his income rather than relying on third-party services [5]

Core Perspective - Personal finance commentator Dave Ramsey advises a caller to liquidate his stock portfolio to pay down a mortgage, despite the low interest rate of 2.875% [1][5]. Group 1: Caller’s Financial Situation - The caller, Nick, has a household budget deficit of $500 per month, with $30,000 in emergency savings, $100,000 in a high-yield money market account, and $150,000 invested in stocks [2]. - Nick and his wife have a mortgage of $329,000 [2]. Group 2: Ramsey's Advice - Ramsey suggests that holding onto stocks while having a mortgage is equivalent to taking a loan against the house to buy stocks, which he deems illogical [4]. - He recommends reducing the emergency fund to $30,000 and using the remaining $250,000 to pay down the mortgage, arguing that the family's total backup cash of $280,000 is excessive [4][5]. - Ramsey emphasizes prioritizing peace of mind and security over potential investment returns, contrasting with conventional financial advice that suggests investing excess cash due to low mortgage rates [5]. Group 3: Financial Philosophy - Ramsey cites research indicating that self-made millionaires often pay off their homes before aggressively funding retirement accounts, with an average millionaire having around $800,000 in paid-off real estate by their late 40s [6].