Do you want to build wealth? The way most Americans build wealth is no secret: Save. Invest. Repeat. Keeping your wealth is a different story. One way to keep it is to buy a home. If you want to buy a home, AND have liquid assets for retirement, you’ll need to work hard, take some risks, and have a plan that you actually follow. You may not become a millionaire until you are in your 40s, 50s or 60s, but these secrets work. Follow these guidelines and … then share them.
1. One spouse – People who get and stay married tend to be much wealthier than never-married singles.
2. One house – Every time you sell a house and buy another, you’re giving up a chunk of your wealth to realtor commissions, moving expenses, mortgage loan costs and possibly additional taxes.
Trading up also means staying in debt longer if you get a new 30-year mortgage loan. Each time you sell a home you are responsible for the realtor sales commissions of up to 6% of the sales price. Moving costs can add up too. If your home has substantially appreciated, you also may owe capital gains taxes on the sale. The first $250,000 of home sale profit is exempt for singles or $500,000 for couples. Instead, if you stay in your house, the property taxes will only increase slightly. Buying a new house that is twice the price of your old one will increase property taxes much more. STAY PUT.
3. Paying off a single mortgage – Paying off a loan over time can leave you with an incredible amount of equity and very low housing costs.
Approximately 20% of homeowners do not have a mortgage. Once retired, a reverse mortgage is an option to give you potentially thousands of dollars each month to spend as needed. STAY THE COURSE.
4. Refinancing to a shorter term or lower interest rate – It can leave you with more equity and lower monthly expenses, keeping more money in your pocket or savings account.
During the last 30 years interest rates have steadily fallen, so refinancing to secure a lower rate has been a big savings to most every homeowner. Take the opportunity to shorten the term to 15, 10, 7 or 5 years to pay it off sooner. Call 714-310-4162 or email the Mortgage Fee Coach for options. REFINANCE WISELY.
5. Widely diversified investment portfolio — Safe investments don’t build wealth. Millionaire portfolios tend to be widely diversified with investments in stocks funds, bonds, cash and real estate.
6. Education is a must – 9 out of 10 millionaires have a college degree and over 50% have a professional or graduate degree.
In the 2014 CNBC Millionaire Survey, 80% of the responders stated that wealth inequality was due in part to wealthier families’ greater access to education. If you are a parent, encourage your child to go to college. Also, you can offer to help pay for it, but not at the expense of your retirement! PROTECT YOUR RETIREMENT.
7. Hire a financial adviser – 7 out of 10 millionaires used financial advisers. Don’t do it yourself.
Financial advisers are far more likely to help you build your wealth than your own efforts to pick stocks, since most investors fail to beat the markets. You don’t need a room full of advisers, attorneys and tax professionals, but expert guidance is available by many companies and in many forms. Workplace 401K fund options and meeting with the financial adviser on how to invest is a great way to start. Automated withdrawals and investments from your paycheck is a perfect strategy. Keep a balanced portfolio and meet with an adviser every year to review your goals and dreams. SEEK HELP!.
8. Lower your taxes – By hiring a professional and experienced tax preparer, you can help decrease your taxable income by taking advantage of possible personal and business deductions.
9. Keep driving your existing car – Cars depreciate approximately 10% per year.
10. Hire Mortgage Fee Coach – By using the services of the Mortgage Fee Coach, you can save thousands in loan fees and hundreds in monthly payments.
The Mortgage Fee Coach can help you to achieve the lowest mortgage rates and fees possible. Call us at (949) 484-6332 OR email to email@example.com if you have questions. The first 15 minutes is FREE.