Is it really smart to pay off your home early? Unfortunately, the answer is no.
Some financial gurus, including Dave Ramsay, will tell you that you need to pay off your home mortgage, for the sake of being out of debt. Unfortunately, if you're interested in building wealth, that's horrible advice. If you're self-employed and you're hoping to retire one day, paying down your mortgage with early principle payments is like putting money into a non-interest-bearing savings account that you can't get it back out of. Why would you do that???
In today's environment of the lowest interest rates in 5,000 years, the home mortgage has become an asset, NOT a liability. The bank is giving you money for less than the rate of inflation, meaning every year, in REAL terms, your payment is going down.
Today's episode is just about getting you comfortable with the fact that paying off your home (or your investment properties), is a bad idea. That is, if you want to retire...
Stay with me. I speak the truth!!
I want to answer your questions. Go to www.rogueretirementlounge.com and click the little microphone button on the bottom right side of the page to leave me a voicemail. I'll answer your retirement planning and investing questions on the show.
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