Many smart, successful savers make the mistake of believing that their home is an asset. But that isn’t always true.
Hi, I’m Bradford Ferguson of Halter Ferguson Financial. Several years ago we had a client who, like many people, looked forward to the day they would no longer have a mortgage. We’ll call them the Mason’s.
The Mason’s probably broke out the champagne after writing their last check to the mortgage company. One of their life-long goals had been realized. They finally owned their home free and clear.
The problem came in when their retirement saving accounts started to dwindle. They were in danger of running out of money and thought they would need to make deep cuts to prevent reaching the bottom of their accounts.
Now the Mason’s had a very expensive asset, their three-hundred thousand dollar home. But it was tied up as an il-liquid asset.
See, if the Mason’s were running short on money, and needed a little extra to cover the electric bill or get new tires for their car, they couldn’t exactly chip a brick off their house and trade it for cash.
They had a tremendous portion of their assets tied up in something that did them no good when money was short.
On our advice, the Mason’s remortgaged their home, refilling their savings accounts and giving them much needed breathing room.
The Mason’s went from having thirteen years of runway and a cliff at the end to having thirty years of spending. They learned that the dream of owning their home free and clear wasn’t all that it was cracked up to be compared to having a full bank account.
While the Mason’s case may not be yours, a financial advisor can bring a second opinion, and often an overlooked opportunity to your specific situation.
If this resonates with you, I welcome you to have a quick call with me. Everyone has something that holds them back, there are many misconceptions out there. Let’s talk about them. Go to my website where you can fill in your contact information and schedule a 15-minute call with us. once you do we’ll be in touch to help you on the path to financial freedom.