The Two Advice Paths Of Finance

Here's a little tidbit of importance to know about finance. It's true almost no matter what your question might be. Further, almost no one in the industry will tell you this. Really.

To make it easier, we'll say your question is "should I pay off my mortgage"? Remember, no matter what the question, there's two answers at least. It's not waffling on my part, it relates to what makes you comfortable.

In the mortgage case, you should think of 7% as a good minimum AVERAGE return across all the things you can choose, and remember I help you pick from a wide variety of good choices that a broker could never offer.

If your mortgage rate is 7% or higher, which is almost completely unlikely right now, then yes, pay it off, and the sooner the better.

If your rate is less than that, then you can do better by investing instead of paying it off.

BUT, and here's the two-answer part, THAT'S JUST THE MATH.

If you understand the math, but would still sleep better with it paid off, then you should do that, provided you're okay with figuring out where to find more money, like Bob and Sandy want us all to learn how to do anyway.

This is a win-win, in my book.