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How about spending your golden years paying up your mortgage to have more money to play with your investments.
This once unheard of notion is gaining popularity with some seniors and their financial planners with more on this -- -- founder and CEO of real well network.
So caveat is is it such an interesting idea and you had.
Really if that's surprising thoughts on it because so many seniors.
Only want to do is pay off that mortgage but now that mortgage rates are in the toilet they are so -- it's almost like getting free money isn't it.
That's exactly what it's -- and first of all any investment anyone makes it always be well research so if somebody's going to take money out of their home and invest it.
It better be a good investment or otherwise you're stuck with that a big mortgage and and nothing else.
So so let's start there and -- ought to be educated before doing anything like that.
When he -- interesting points I thought is that if you own your house free and clear you're really offering people out there who might -- -- you a big target.
Have you seen that in your practice.
I do a lot of education on blogs and radio shows and so forth and I interview a lot of attorneys and the first thing they tell me is that they're gonna -- a lawsuit they want to know they can get money.
And the first thing they do -- -- title search to see if you have equity.
Wow so if you -- that house free and clear it's like putting a target on your back.
For people in that age category -- also say it's a good way to build diversification -- so.
Oh absolutely you know if you have all of your equity in one place how is that -- diversification.
And so often most people have most of their money in their home they've spent years paying it off.
Now they have a big bucket of money but it's just sitting by got -- -- that is sitting duck for others to may become slip and fall on your property.
Voted so that dangerous if you refinance.
First of all that he got alone on that property.
It's not as interesting to an attorney -- -- can't do anything with the equity it somewhere else maybe take.
A few 100000 out and you buy investment properties somewhere -- -- that in com helps to pay off the debt.
You can put those properties in an LLC.
Not in your name and is very difficult to track who owns those properties.
-- -- so basically what you're doing is as simple comparison.
The rate of interest that you would get on that Jumbo -- five maybe 3.5 percent somewhere around there three point 79 as the current level.
And what you could earn in another investment so if you know you can earn.
5% 6% 7%.
Yet that might make a lot of sense right.
Well it's exactly what the banks do the banks borrow money and they landed out for 3% more right now they're getting it for pretty much -- though.
-- -- -- -- -- -- -- -- -- -- -- -- So why why can't we do the same thing why can't we borrow from our homes and invested for more.
And you know a lot of people might say where am I gonna get six and a half percent there are a lot of places to get that kind of return you just need to know what you're doing it's -- to be able to find it.
-- what we're gonna have to have you back talk about where to make 6% clearly Kathy thanks for coming on the show tonight a pleasure having you here.
Thanks so much.
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