If you are already retired, have no other debt (besides the mortgage), and have a full Emergency Fund in place, put the extra money toward the mortgage, not in a brokerage account.
Here's why: When retired, a paid-for home is one of the greatest gifts you can give yourself. It slashes your monthly expenses and eliminates the risk of carrying debt on a fixed income.
A paid-for house means you need far less income each month to live comfortably. That security is worth more than the potential gains from a brokerage account.
The math might seem to favor investing (especially if your mortgage rate is low), but Ramsey's approach is behavior-first. The guaranteed return of eliminating a mortgage payment is powerful, and the peace of mind is priceless.
The plan:
- Attack the mortgage with every extra dollar you can
- Once it's paid off, you can redirect that former mortgage payment into investments to build wealth
If you want professional guidance on how to structure your retirement income and investments around this goal, a financial advisor who knows Ramsey principles can help you build a specific plan. Connect with a SmartVestor Pro to find someone who leads with the heart of a teacher and values serving over selling.