Owning Your Own Home May Help You Retire Sooner
Millionaire's advice to Millennials - David Bach, A self-made millionaire who has written 9 consecutive New York Times bestsellers, was featured in an article in CNBC saying, "Buying a home is the escalator to wealth in America. Homeownership can also help you retire early, that is, if you pay your mortgage off."
Mr. Bach suggests that homebuyers should, "Take out a 30-year mortgage, but with the intention of paying it off in 25, 20 or ideally, 15 years."
Here is the secret on how to achieve this: Mr. Bach says, "if you were paying $1,000 a month, how you're going to make $1,100 payments eery month. Inform the bank that you are doing this and that you want the extra $100 to be applied to the principal (not the interest)."
What is the affect on your mortgage?
Bach further explains that, "if you keep this up, you'll wind up paying off your 30-year mortgage in about 25 years. Increase your monthly payment by 20 percent, and you'll have that mortgage retired in about 22 years."
People tend to listen very carefully whenever a well-respected millionaire offers free sound advice. This millionaire gave simple advice - buy a home and pay off your mortgage early so that you can retire sooner with the money you will have saved building up equity.
If you are a millennial (or not) and want to get a jump start on your retirement, call or text me today at 954.850.2397 about buying a home in Fort Lauderdale.
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Disclaimer:The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. John Sabia PA and Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. John Sabia PA and Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.