So You Want To Pay Off Your Mortgage?

Jessica Lanning — Mon, 01 Feb 2010 15:00:15 +0000

Paying off one’s mortgage can be a very viable financial planning goal. Just do it the smartest, fastest, safest way possible. People often say, “Well, I’m conservative. I want to pay my mortgage off.” My response to that is, “Conservative to me means that I have the financial wherewithal to meet any financial challenge I may have and to take advantage of any financial opportunity that may come my way.” That means having cold, hard cash available—not tying up so much of my net worth in real estate, which is not very liquid.

Look For New Ideas

There are many innovators out there, creating products that are going to help the American consumer pay off their homes and save for retirement. There are mortgage products and strategies, that when used consistently will have you pay off your mortgage in half the time without increasing the amount of money you pay on your mortgage. By simply by taking advantage of daily crediting strategies and the “free float” on credit lines, you can achieve home-ownership quickly. Because you are not paying extra money on your mortgage to make this happen, you can then put that money toward an investment plan that will provide for you in retirement (or for college educations or any other expense that you might have). I can teach you how to do this. It’s not magic. It’s just math.

The post So You Want To Pay Off Your Mortgage? first appeared on Lanning Financial.

The Downside of Owning Too Much Real Estate Equity

Jessica Lanning — Mon, 25 Jan 2010 15:00:21 +0000

For whatever reason, I’ve been working with several clients lately that have an inordinate percentage of their net worth tied up in real estate or other illiquid assets. This is threatening their retirement income plans and their estate plans. Don’t get me wrong. I love real estate and I love real estate investing and investments. Just make sure you’re planning along the way. Your financial life is not about The Plan—it’s about planning.

Remember, Cash is King

So far, it is still impossible to take your ATM card and stick into the side of your home or your investment properties and pull out cash. If you are in the habit of accelerating your mortgage pay-off, stop. Review what you’re doing and why. Just because that seemed like a good idea years ago doesn’t mean it’s a good idea now. It’s hard to get that money back once you’ve put it in your house, especially in this lending environment. Often, you’re better off keeping the mortgage, getting the mortgage interest deduction, taking the money you would have used to pay off that mortgage, having that money make money for you, and in the future be at choice as to whether to pay off the mortgage or keep it going. The potential upside is more retirement income and more liquid assets available to you. To me, that equals financial security. Having to sell a piece of real estate in a potentially down market to generate cash for retirement or other needs is terrible. Often it results in lower sales prices and less proceeds in the seller’s hands. What I want for my clients is options. Keep your options open. Keep your assets balanced.

The post The Downside of Owning Too Much Real Estate Equity first appeared on Lanning Financial.

net worth | Lanning Financial

So You Want To Pay Off Your Mortgage?

Look For New Ideas

The Downside of Owning Too Much Real Estate Equity

Remember, Cash is King