jollystomper
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Apr 16, 2012
- Messages
- 6,196
The field of Behavioral Economics addresses why people make financial decisions that don't make sense if you look strictly at the numbers. Much of what Ramsey teaches recognizes this. One might even say (cough, cough) that people who insist on having a paid-off home in retirement even though their investments are yielding twice the mortgage interest rate they'd be paying are behaving irrationally.
I know of at least one well-known financial talk show host who agrees with this, saying you should maintain the largest mortgage payment you can afford, your money can be put to better uses than paying off the house.