Core Insights - The strategy of borrowing against a home for tax write-offs is outdated and often financially unwise, as the cost of debt typically outweighs the tax savings [1][3][4] Group 1: Financial Advisor's Recommendation - A financial advisor suggested a $260,000 Home Equity Line of Credit (HELOC) against a fully paid-off home for tax deduction purposes, despite the limited value of such deductions post-2017 tax reforms [2][6] - The couple, with a combined income of $225,000 and $1.6 million in retirement accounts, is also managing $150,000 in debt, including a $50,000 student loan [2][5] Group 2: Critique of Financial Strategy - The recommendation to use a HELOC for tax deductions is criticized as a misalignment of financial priorities, where real costs are incurred to save theoretical tax dollars [3][4] - The couple's financial strategy of contributing $50,000 annually to retirement while carrying consumer debt is seen as flawed, as it prioritizes uncertain future returns over eliminating guaranteed costs [5][6]

There’s one video that was making rounds on social media platforms a couple of years ago, which caught the attention of personal finance experts Dave Ramsey and Rachel Cruze during a past episode of “The Ramsey Show.” The clip featured a father proudly filming his teenage daughter, claiming she was buying her first car using a loan and investing her savings into an Airbnb to cover the payments. The Math And Morals Don't Add Up “It just drips in arrogance,” Ramsey said after watching the clip, adding, “Y ...