Thursday, February 23, 2006

Have Your Cake and Eat It Too
It's been almost one month since my last post, I'm going to try to post at least weekly with my goal to post daily.

Anyway, my last post concerning whether to pay down your mortgage or not is still in my mind. In all fairness, if you took the time to read the article you'll note that at the end of the article Don Taylor says "If you're fairly conservative with your investments and don't want to look outside savings accounts for investment choices, then paying down the mortgage isn't a bad idea. If you're taking a bigger-picture view of investing for the future, it's not as likely to make sense"(I added the emphasis)With that being said, I guess I agree with him but not in the methods he might use. Missed Fortune 101 is all about the big picture.

The concepts revealed in MF101 are about properly positioning your largest asset, your house and it's underlying equity and leveraging that by separating the equity from your house and using that to create a return that can and should beat what your paying in mortgage interest. If your interest rate is 6% and your tax bracket is 34%, your effectively paying less than 4% after accounting for the mortgage deduction. MF101 suggests using products that will guarantee a minimum return yet also perform well when the markets are in a bull market phase. If you're guaranteed a 1-2% return when the bears are in control, yet take advantage of the market upside when it's the bulls turn, can you see why this is something that although has been around for 100 years, never has it been accessible to the average person.


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