Diversify Diversify Diversify... that's the mantra of today's Financial Planner. Many people disagree with that quote - big notable investors like Trump, Buffett etc...
But that's what we're taught... diversification reduces risk and increases return over the long term.
But ... when we're talking about our Primary Residences and diversification, are traditional Financial Advisors barking up the wrong tree??
Most traditional Financial Advisors are eager to get you on the path to owning your house outright. They have all sorts of ways to teach you how to scrimp and save so that when you are in your 50's and 60's you have paid off your house.
But... what exactly is the advantage of paying off your house?
If their mantra is "Diversify Diversify Diversify" yet in another breath they say, "No Mortgage, No Mortgage, No Mortgage" then aren't they contradicting themselves??
Let me tell you why they are!
Because they are essentially telling you that you need to take a large portion of your potential retirement funds... your nest egg... and sink those funds into an illiquid asset.
These are funds that should be there for you in retirement...but instead this large sum of money is funneled into your house where you cannot use it.
Think of it...sometime in the future when you need money for something big - like an emergency or to finally replace that old car that just passed away right before you could pass it on to your grandson... and you have worked a long time to make that money. Then you have to call someone like me and I have to tell you how much it will COST YOU to access your money!
To read the entire article, follow this link -o--> Florida Mortgage | Real Estate, Investment and your Primary Residence