Importance Of A Mortgage
I was listening to this on http://www.mortgagemarketguide.com/ from Ed Conarchy. A lot of the information he states is from Ric Edelman who is the top Financial Advisor in the country. Here are the steps you need to follow:
- Max out your retirement
- Hang off the bad debts. Take care of high interest credit cards.
- Have 12 months of reserves, cash, when buying a home. Rainy day fund for emergencies.
- Invest for the future. Not just stocks and bonds, they have too much risk. Invest into stock funds and bond funds for diversification, real estate, commodities, etc.
- Invest for the long term. Not buying and selling.
If you have 60% of your equity in your home you are not diversified. This isn’t debt elimination it’s wealth creation. Susie Orman talks about being debt free but isn’t a homeless person debt free? Yes they are but they haven’t created wealth.