August 24, 2017
when should you start investing

When Should You Start Investing?

One of my biggest pet peeves as a financial planner is debt. Debt is something I deal with on a consistent basis when it comes to my clients. The question that I get the most concerning debt many times is this: Should I pay off my debt before I start investing? I’m a huge proponent of paying off all your debts with the exception of your house and maybe a business loan before you actually begin investing and here is why. Most of the time, people are talking about car loans, boat loans or TV loans. I have even seen loans for washing machines! We are indebted people. Debt sucks plain and simple!! There’s no other way I can put it. So when you should start investing? 1. Pay off your basic consumer loans first. When you look at the amount of interest people pay on credit cards or car loans, it’s just ridiculous. That amount of money could be invested and putting money in your own pocket. Yet you’re paying it out to make someone else’s wallet fatter. With I’ve seen credit cards charge anywhere from 10% to 20%. That’s just mind-boggling to me. That’s more money than the […]
August 16, 2017
My Personal House

Do Extra Mortgage Payments Really Help?

When it comes to paying your mortgage everyone knows you can save money on the interest by shelling out a little more and applying it to the principal. That means additional principal payments benefit you later on, right? You may also view one dollar today as the same dollar tomorrow. However, that’s not technically true. It depends on how much and why you spend it. If that seems a little confusing, let me break it down a bit more for you.  That way you’ll know how much you really are or are not saving. Paying Extra on the Mortgage Let’s look at an example of what I’m trying to say. Here are some assumptions we’ll make. Joe Average secured a $300k mortgage for a 30-year term at 5%. He decided to pay an extra $30 each month to save himself in the long run. In doing so, Mr. Average shaves just over a year, 14 months actually, off his mortgage, thereby saving $13,458 in interest. Not bad. What if he doubled that $30 to $60? At that point, his home would be paid off just shy of 28 years. This time he’s saved $25,560 in interest. That’s almost double the […]
July 29, 2017
Debt Reduction

Pay my Mortgage Debt or Invest? Which Should I Do?

The thought of being debt free sounds like a dream come true for most of us. Many folks are wrapped up in credit card debt, car payments, mortgage payments, etc. However, there’s one debt that freeing yourself from could do more harm than good, from a mathematical standpoint. That is your mortgage debt. Honestly, it’s often not a good idea to pay it off or even pay extra on it before age 50. I know individuals in their 30s who received big inheritances, went out and paid cash for a house to avoid a mortgage payment. To them, it was a good idea. I also know individuals that decided they wanted to pay their home off as fast as possible. As a matter of fact, I have some friends that are also clients that ended up in this exact scenario. They bought a house in another state during the downturn of the market. Recently, they sold it and made $100k, to which they planned to pay off the mortgage on their current home making them debt free. I said to him, “You know that sounds good and I understand, but you‘re dealing with about a million dollar decision right now. […]
July 27, 2017
student loan debt

Student Loan Debt: Pay it Off Fast! – Financially Simple

Do you have mounds of student loan debt? If so then you can help knock it OUT quicker by following these seven financially simple tips!