It’s the dream of almost every hardworking family in America. It is one of those things that motivates you to work that overtime or skip that extra expense… so that “one day” that mortgage will be paid off early and you can ride off into the sunset! It seems to be a classic “no-brainer” right? We should all pay off our mortgages as fast as possible, but one leading financial expert says maybe not!
Ric Edleman has been a leading financial advisor for over 20 years and he says that most Americans are better served by carrying a big long mortgage! The thoery is simple. Should you take every extra penny you have and pay off a mortgage at 4-5% interest, all of which is tax deductible, or should you pay the minimum possible towards your mortgage and invest all those extra pennies? Ric, along with scores of other financial experts, obviously thinks you should do the later. I have a DVD called “10 Great Reasons to Carry a Big Long Mortgage” by Ric Edelman, and I would be happy to give you a FREE copy if you call me.
I am not writing this to say Ric is right or wrong because I truly believe that every person is unique. I will say that Ric’s math is sound and numbers don’t lie. Leveraging your extra cash over your working lifetime will almost always create more wealth than using all our money to pay-off your mortgage, but there are risks invloved and not everyone will stay disciplined and invest the money wisely. Then you end up with no money and a mortgage payment to pay in your 60’s and let’s face it, that’s no fun!
What I am trying to say is that conventional wisdom is not always right. In Fact, many times widely held beliefs originated from something that is no longer even relevant. Our grandparents felt it was vital to own your home free and clear because there was a time when banks could call your loan due and try to foreclose on your home even if you could make your payments… they can’t do that anymore! I think it is smarter to plan your financial future based on current advice from an expert rather than follow the herd and doing what “everyone knows” you are supposed to do. Don’t follow the herd because the average guy is broke. Ask questions and learn how to position your family in a better position than most… average is not a good goal!
I am not a financial advisor but I know a good one. If you would like someone to help you plan for your future, give Josh Garbert at Edward Jones a call. Josh can be reached at 704-541-4154 and has an office near mine in South Charlotte. You can also look Josh up on the web at www.edwardjones.com. Under “Find a Financial Advisor” simple type in Garbert and his information will be at the top. Josh specializes in retirement planning, estate planning and life insurance coverage. He can help you analyze where your money is going and where best to allocate it so your family is on solid ground in the future!