In Moment Of Brutal Candor, Dave Ramsey Goes Off "Your financial planner's full of crap is the problem,"

"The planner's logic is called mortgage arbitrage: borrow at a low fixed rate, invest at a higher expected return, pocket the difference. On paper, it holds up."

"The problem is that the long-run average return is not a guarantee for any given year. Ramsey put it directly: the planner 'didn't adjust for taxes and he didn't adjust for risk.'"

"The VIX, Wall Street's primary measure of expected market volatility, sits at 26.78, placing it in the elevated uncertainty range. It has surged 37% over the past month alone."

"The arbitrage trade looks clean in a spreadsheet. It looks different when your portfolio drops significantly in a bad year while your mortgage payment stays exactly the same."

Mortgage arbitrage suggests borrowing at a low rate to invest at a higher return. While it appears beneficial on paper, actual returns depend on individual tax rates and market performance. The long-term average return is not guaranteed annually, and risk adjustments are crucial. Current market volatility, indicated by the VIX, shows significant uncertainty, making the strategy less appealing when considering potential portfolio declines against fixed mortgage payments.

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