Sweet, congrats!

You would be better off to convert your real estate wealth into a stock portfolio

WAY TO GO!!!!!!!!!!!

​@@kevinwelsh7490and live where?

@@jolkraeremeark6949 houses are overrated. Just have a nice stock portfolio and live in a cardboard box under a bridge.

In today's economy our GenX generation will probably never retire 100%. I have two paid off houses in CA and FL (rental property). Their combined annual property tax burden is over $17,000 combined (excludes insurance) Wrap that around your head.

Exactly. A home is NOT an investment in a typical sense such as rental properties, stocks, bonds, gold, or a business. The huge difference is that a home is a NECESSITY. I NEED a home to live in, so I refuse to gamble and leverage my home...so I decided to pay it off. However, I DO NOT need any stocks. Stocks are great, but they aren't a necessity.

Really happy for you!

@@cdsersd2dshe now has her whole income to invest

You still being a slave of the IRS, state taxes, county taxes and the rest of the scam, if you want I to know who owns your house stop paying property taxes, you will find out who the owner is and it won’t be you for sure.

@@bracsimYes but with taxes come the benefit of living in a community and enjoying its services. Paying a bank serves one purpose: to make banks rich.

And how do you do that when money is precisely monetized debt?

@@bracsim boo-hoo, keep bitching boy. You can always leave the country.

@@dominicclark5342 simple. don't be a slave to your debt

Yep. Get your necessities paid off BEFORE you invest. A home is a necessity. There is nothing more nerve racking than having BOTH a mortgage AND losing money in an investment.

@@cdsersd2d people need to invest in a roth ira as soon as they start working. Do not wait until your home is paid off.

@@cdsersd2dim planning to sell one investment property to pay off my mortgage.. i have 3 investment properties and my own home. Do u think its a good idea?

That is great and I too look forward to the day I can say that. Let's be honest though. If you stop paying property taxes you'll find out quick who really owns your home.

@@mrniceguy423 Death and taxes. Two things you cannot avoid.

Well it’s yours and the governments.

@@mrniceguy423isn’t that incredible? Continuing to pay tax on an asset you’ve already paid in full…

I'd say maxing out a Roth IRA, if at all possible, is also one of the best things you can do. And you can put those funds into something safe, like an S&P 500 fund, which is probably at least as safe as the value of a house over the long term.

Invest the inheritance, you’ll come out far ahead.

@@MuzixMaker Yeah, unless he loses his job, or has health problems and can't work. If that happens and he can't make his payments he loses the home to the bank. Then he can watch his investment portfolio while he lives under a bridge.

@@robgrey6183 he can make the additional principal payments from the dividends and keep his inheritance, which will also grow faster than the home price over the next 15 years.

@@robgrey6183 why did you delete my response you coward

@@robgrey6183 Right. Owning a home outright gives a lot of security. "Home is your castle". I think even in case of catastrophic medical expenses, they can't take away your home, right?

Nooo... Property tax, maintenance, etc

​@@kbanghartProperty tax is miniscule compared to a mortgage.

@@sgtm7 depends on the property. In Texas, they tax property fairly high so you really have to watch out.

@@kbanghart The house I owned in the states was in Texas. So my statement is based on Texas. Even though the percentage is higher than many of the high cost places that have an income tax but lower property tax, because the property is cheaper, it is still miniscule compared to a mortgage.

@@sgtm7 cool. Also, I never said otherwise.

Thanks for sharing this amazing story. I look forward to doing the same

This is true, because most Americans don’t have a whole Lotta net worth, and most metrics are showing real estate as a portion of your net worth but we all know that the asset portion of the house that people have is just an best. Guess you can’t say that you will know the price of your house when you sell it as well as people don’t take consideration the portions of the house overtime that’s maintenance, that counts against the true asset value of the house because of all these unknowns I also do not put my house as part of my net worth. I think that this also flies in the face of if I want to sell my house to get into the asset portion of that again I would have to sell it and I don’t want to sell it so it is an asset to me or a liability and even when I pay it off, is it a asset or liability, I think in general I agree with her and people like the money guy Show it’s what you wanna do with your money and the end of the day I can buy and sell in the market and does not affect my actual life if I sell my house that affects my house my family, my everything therefore I don’t consider a house as an asset. You live in it when it changes is if you actually are investing in real estate, such as buying a property renting it out then I would include that in my net worth statement, but not the house that I live in. What you’re saying here is an opinion that is actually fact most people have very little net worth and so maybe that’s an issue in how we think of net worth as Americans if you consider that your house is worth 150 and you go to sell it and you only get 100,000 you’re ready Have negative net worth and you didn’t ever think about it at that point because you’ve always thought the asset was 150,000 this is a problem overall this is why I do not count it unless I can arbitrarily understand what the acid value is at? Any moment in time when I do want to go sell not what I think it is or what a real estate agent considers she could get for the housenot to mention all of the cost associated with buying and selling assets does make sense. I think this is something that has American people we need to wake up understand what true net worth is it’s not the house.

I agree! The Exception is the Few that do have a bunch of money in their 401K! Very few have more! Rental Houses A Business These are real possibilities though!

Speak for yourself

It's an asset. Why wouldn't they include it?

So what?

That's great. If you are planning to sell your home, improvements are a good idea. If you are planning to stay in your home for years to come...they are still a good idea in terms of your comfort and enjoyment, but not so much in a financial sense. Of course you want to make sure everything is in working order and clean, but if you are really looking to max out your moolah long term, start investing it instead. 10k on a granite counter will never outperform 10k in a conservative mutual fund.

I will 2nd that other response. A coworker just made 100k on his house. Meanwhile, a family member of mine will never be happy with her primary residence and has spent THOUSANDS over the years to redo the same things multiple times.

Do you have a job with variable income? Most people who own a home have a regular predictable income. If you budget properly there is no "stress" of coming up with a payment, it simply comes in for having worked.

I hear you. Unfortunately property taxes never go away and in some places can cost as much as rent. It’s insane. You never own anything. Always renting.

What state?

@@es330td It still sucks having a substantial amount coming out of your income consistently every month.

Nut?

Congratulations man, am on my way too

I couldn't even fathom trying to retire with a mortgage.

Yes it truly is part of networth when used to advantage

My rich great aunt and her husband are on their 3rd free $500,000. They buy homes near the beach.

A good point, but be careful depending on this in retirement. My father passed away suddenly and that deduction dropped to $250k for my mom. Life is uncertain.

@@blueblur1984 $250k for one person tax free is a rare thing.

not the only, since you are responsible for inside and outside of your house maintenance, which also includes appliances, etc.

Where I live that’s a thousand bucks a month.

That's more than your mortgage amount in some states.

​@@hanwagu9967 ur obviously not an adult

It's not priceless. It cost you😅

But having the feeling of no longer paying a mortgage is priceless

Freedom

The feeling is priceless DUH@@LRF49

You still have to pay property tax or you loss it.

Congrats on getting it paid off!!

Nice job Harry Balls!

Wow, in what state do you live? Is there a state that you think you might move to?

Moving from Colorado to Utah.@@galens2543

That's awesome. Since I was 25 I planned to be able to retire at 55 if I want to. I'll probably stick around until 60 because I still love what I do and it pays very well. It just means more retirement funds and maybe a few more toys to enjoy when I don't have to go to work everyday. I bought my home with the intention of being able to pay it off early, by 55 so I wouldn't carry a mortgage into retirement. I made that goal early by 2.5 years, so that's another $120k+ in large mortgage payments that I don't have to make for those next two years. Then another 5 years of extra income, while being rent free that I'll be able to save and invest.

I was prior service Navy....and Army (because I apparently didn't learn my lesson), plus, I retired as an LMS 0346-13/07 at the end of '19. Free advice: do NOT file for SSN in the same year you retire. I'll bet you can guess how I know. Retired 31-Dec-19, filed for SS to start 02-Jan-20. In '21, SS sent me mail - lots and lots of mail, but among that mail, they said "you made $16,000.00 too much for 2020." The reason is, as it turns out, is that I took a buy-out in 2019. Guess when the paycheck hit the old bank? If you said "January of 2020," you would be correct. So, the IRS took 30% of my buyout, SS took 30% of the gross, and with the rest, I funded my 2020 Tundra....just before the 2 weeks to flatten the curve. Stay safe. I appreciate your service.

Good advice about the SS. I can’t take it until the following year so I should be fine. I’ll retire this spring as a GS-0856-13/07…. Thanks!

I’ve put investing into consideration also. What do you think is the best approach for someone who is just starting out?

Herman Jonas is the brain behind my success. I've gotten into a plethora of assets with $13k spread across stocks (options and futures) for the short term and Roth IRA, index funds, and ETFs, for the long term. Now I sit back, and just reinvest at intervals while I handle my other businesses.

Do not forget that when it comes to the stock market, prices can be erratic, rising and declining quickly, often in relation to companies' policies, which individual investors do not influence.

How can I reach him, please? I've seen good recommendations of his work elsewhere. I need help with investing in stocks. I'm ready to pay for his services.

Hermanw jonas (a Gma!L comm Is he taking commissions for his services? Yes, I’m I still making money in the process? Hell yes!

u still paying half in interest regardless, i have a 2.5 an still gonna pay off early. look at ur amortization schedule u still giving away plenty money

I've watched a bunch of retirement and pension videos and it all comes down to that.

Wow, that is AWESOME beyond words. I didn't even buy my home until I was 38 years old. Enjoy the peace of mind and much lower levels of stress this brings you.

900 hundred means u live in a high cost state and big house lol

I think this is bad advice. Inflation erodes the value of the debt of the mortgage. Also, the opportunity cost is too high. If the individual is disciplined in investing that money, they will have a far greater return then they will on their house.

Can't invest when you're in fear of being laid off and losing your home. We could have chosen to invest, but our home was something we weren't willing to lose. Been free of all debt for ten years now. We're in our late 40's and are looking to retire comfortably at 55. We're happy with our choices.@@tito4018

Good for you and your family.

Yep. Basically you'll never really have a home paid off completely because property tax and house insurance will always be there. It's such BS.

@@Westcoastguy Renters are also paying property tax and building insurance but just indirectly through their rent payment. I paid my house off 12 years ago and the cost of property tax and insurance is about $500 per month. Houses in my neighborhood similar to mine are renting for $3000 per month. Property maintenance isn't costing me the $2500 per month difference.

Yeah and for some it means a multi-millionaire!!

Keep in mind, we could all die tomorrow. That doesn’t mean you shouldn’t plan on living past then.

Owning them outright, we can charge a little below what the market will support for our units too. When prospective tenants ask us "what's the catch?" we say that what we want in turn for a little lower rent, is to never be late with it. We also don't want to get early am calls for simple fixes like light bulbs or if your kid put a hole in the wall. If you damaged it, you fix it promptly. Call us for the big stuff.

How much for homeowner's insurance?

The insurance is included in the hoa.@@AndrewJones-th3vi

@joshlowell3075 Yes! In the long run, homeownership usually pays off compared to renting. Especially once the mortgage is paid as you described in your situation.

Wow, interesting indeed! Currently I'm in need of investment ideas or tips. Earlier this year I hesitated and failed to take any action until now. However, I'm determined to try some new as I am very open to various investment ideas . I want to be retired in my forties or fifties. I really wish I can achieve what you have achieved and I believe it will happen

It's essential to comprehend the complexities of investing. Having a trustworthy support system, such as a financial adviser, who can advise you is crucial, especially when choosing assets.

Thank you for your advice, it's challenging to find a reliable investment advisor here. Seeing the success you have achieved through investing I would love to have access to your investment advisor.

Generally, investing requires higher knowledge. For this reason, it's important to have a solid support structure to guide you through especially in asset picking. I operate with (ALEX MARTIN TARLOR) an investment specialist who partners with a licensed wealth management firm. For the record, his experience has been the best for my finance

Wow, I'm surprised you know Alex martin tarlor He has been my financial advisor for over a year now and not only do I receive large passive income monthly I am able to achieve 4 out 5 financial goal I have for the year

I do the same. Don’t be house poor.

Glad it was helpful!

So are you saying that the immigrants are bad or good ?

@@bradbriggs5347 Bad. People can't afford families, because housing takes a working couple 30 years to pay off. One wage can't support a family of 5 to 7 children, like 100 years ago. The system is rigged. You replace what families once did, with government services. One of these services, replacing reproduction, with immigration. Other services like welfare dependency, has replaced what families used to do. Families used to be your pension in old age. Big government & high taxation is out of control. Remember income tax didn't even exist in the USA, Great Britain & Australia before the 1920's.

@@bradbriggs5347 I don't think anything was said about that one way or the other. Sydney has been growing like mad for decades now is the point. A colleague of mine at work came to the US from Sydney partly because home prices/values were so crazy he felt he was being priced out of the market and couldn't afford to live there any longer. This despite making what many would consider a really good income.

@paulfly3121 I felt it was a fair question, I live in a northside beach side Brisbane suburb and we have had a landslide of immigrants from nsw, I was wondering if it was a ultimately a good thing or a bad thing, sorry if you thought it was racist but that says more about you than it does me

@@bradbriggs5347 What's better, having your own family & a legacy. Or making housing unaffordable, so you can't afford a legacy. Low birthrates are a government policy. Immigration is a government policy. No such thing as low birthrates, before woman got the vote. When you have a section of society that overwhelmingly vote for provision & security, this is ultimately the result. Total & absolute demographic replacement.

Nice. I wish I bought in early 2010's... I got mine in 2018... if I stuck to my goal than it would be paid off next spring. But I'm about 3 years behind schedule. It is hard to stick to the plan for 8 years in a row. Hopefully I stay working for the next couple years, strap down and stick to the plan

Use that exact amount to invest for your future and sudden unexpected home repairs. Congratulations.

Actually some are going to be taxed out of their homes soon and without any extra income without working hours or worse

​@rockystaatz521 What's the percentage of people that get taxed out of their houses? I would say 99 percent less than those still have a mortgage.

There’s a person on my street that has a paid off home, however, over the years taxes have risen so much that the person is now paying more in taxes than the mortgage

@@auomi8762 so they have both, I’m saying if you have taxes only it’s better then a mortgage on top of it.

@@rossta3949 you are probably correct except for some fixed income , still have a mortgage because my money makes more than my mortgage but taxes have raised the payment to an unexpected amount with utilities going up at the same time. When the taxes quadruple in just 3 years that’s not something you can plan to cover in almost every range

So true Rod, I'll one better ya. Financial education starts at home long before school. I'm pushing 70 and was raised by parents who emphasized early the value of a dollar and the importance of saving and investing for the future. As kids we never went without but were never spoiled by the extras unless we earned them. Parents don't realize the problems they cause early in life when toddlers are pre conditioned to get what they want when they want it. Sounds silly, but allowing a child to take home a toy of their choice every time they go shopping vs giving them an allowance and purchasing a toy with their own money is a simple but educational lesson. My wife and her siblings were all spoiled as kids. Got almost anything they wanted and never took care of anything. All of them grew up as adults who lived paycheck to paycheck and were never out of debt. Two will work til the day they die, up to their eyeballs in debt. All the nieces and nephews, ditto. Fortunately I was able to convert my wife away from this instant gratification lifestyle and over time she has become savvyier than me at living debt free and making educated financial decisions. Both of us retired in our late 50s, haven't had a mortgage or any debt in 20 years. Pay cash or CC off immediately. Review our investments once a year and trust in our advisors long term strategies. Wealth accumulation is a slow life long process. Anyone who tells you differently is full of it or likely has an ulterior motive.

My parents married in 1932, poor as church mice. I inherited my basic money management techniques from them, as well as the example of my mom's stepmother, who could pinch pennies until they screamed (and was the nicest person in the world). And don't believe that legendary nonsense about "The Roaring Twenties;" although there were some rich people, for most the 1920's were plenty rough.

Buy when others are fearful!

If I made $60K per year and had $1100 payments in retirement income, that would leave me about $2800 net per month after paying mortgage. That's reasonably comfortable for me, and in your situation, I probably wouldn't pay off the mortgage either. However, in many other situations, I think paying off the mortgage makes tons of sense.

Goals 👏

Same, except my house isn't paid off. As I said above, my mortgage is half what an apartment (or some houses) go for. My 3 year old Tundra is paid off, and other than utilities, I could live off just Social Insecurity. It would be tough, but thankfully, I have an annuity, plus income from investments. Although I lost money (around $30K) in 2020, I'm still not doing badly, since most of those investments aren't in the stock market.

Disagree partially. Your living situation should reflect your lifestyle needs. My wife and I travel a lot, so having a lot of home maintenance would be a pain. So, we rent and will rent for the foreseeable future.

being house rich is not security.

So you are assuming the Republikkkans aren’t going to gut your SS entitlements?

Live in a cardboard box assett,$$$$it folds neatly everyday.

Of course it is an asset because it eliminates the cost of rent. If your rent is 2000 a month then you have paid $24,000 at the end of the year but if you own the home you pay no rent so you have made $24,000 a year.

Haha, here in New Zealand, if you live in a weather prone area “everyone’s” insurance goes up to pay for it! The North Island has been hit really hard in the last year or do, with cyclones, flooding etc, yet all our home insurance premium payments went up because of it, and I live in the lower half of the South Island where the weather’s more stable!

Just having property taxes and insurance a great spot to be in.

We are completely debt free as well! Feels great Have a great day 😊

My wife and I have very comparable circumstances. She is a great partner in this. Slightlty sad is it took us until our early 50s to get there. Sooner would have been better.

@@De-Centralized Better late than never. My late wife left us in debt via a couple of credit cards and some other stuff. It could have been much worse, however. I started that debt-free journey late in life (2010), and I was still at almost a half million by the time I retired at the end of 2019. Took a hit in 2020, but I'm still in good shape. Sooner WOULD have been better, but it is what it is.

​@@billfunk3168 property taxes, utilities, groceries, and an unlimited bus pass...

networth isn't correlated to reduction of expenses or income stream. Plus, your home may appreciate 4.5% over time, but that is reduced by inflation over time and you have no flexiblity with home equity.

@@hanwagu9967 I disagree net worth is totally coordinated with reduction in expenses or increases in income

Except property taxes.

@@dariogomez8721 In many jurisdictions, some people are exempt from property tax. Senior citizens and military veterans of certain tax brackets are exempt. Also, if you do pay property taxes, it's usually less less than the increased worth of your home year over year in the long run. Now, maintenance cost will definitely decrease your networth. Writing a $20k check for a new roof or major repairs will put some dents in the networth

​@@hanwagu9967homes and people's situations are all unique. You can't just say home ownership is a bad investment. I put 0% down, my home has appreciated 50% in 3 years. And I can rent it out currently for ~140% of my mortgage. It's an investment that will pay for itself. As long as I put the extra rent into an account to pay for expenses on the house, I will never have to pay out of pocket for it while renting.

cash is a dpreciating asset

@mra95662 - So are houses and guess what, rich people can deduct their investment home as a depreciating asset therefore reducing their taxes and you pay rent to help them pay their mortgage! You can only realize your gains on your home (If you're not underwater) by selling it and its not as liquid as cash and you still have to find a place to live. How do you buy food? Cash or credit card. You work for a paycheck that you can easily withdraw from your bank right? Many got into trouble thinking the government will take care of them with social security but I got news for you, DON'T be fooled. Average SS benefits $1,700. How much is rent these days on average. Think of ways to get ahead to make more money, we will always have inflation so one of the ways to get ahead is make more $, save and invest. The rich get richer cause of their friends in the white house, not us. Ever thought of why a company stock price goes up celebrating after a layoff, let that sink in. Can you eat your house. No.

You dont include your principal residence as apart of your net worth? Net worth is assets minus liabilities.. your house should be included in that

@raze5346 That's their definition. Not mine. You believe inflation is at 4%? Up to you. The government changed the definition of recession when we had 2 quarters of consecutive negative GDP. The way I see it, anything which does not generate money and isn't liquid, I won't add it. Unless you do a reverse mortgage "selling" your house to the bank and get monthly payments which im not interested in. Other than that, homes are meant to be lived in especially a primary home. It takes time to sell and make your profit but you still have to live somewhere. Even if you are mortgage free, property taxes, insurance and maintenance still apply.

In my opinion taking out a home equity line of credit is a bad idea but some people might disagree with that.

@@josephkelleher8820 I did that for home improvements, except I borrowed against my 401K. Even though there was interest, I was paying myself back from borrowing my own money.

​@@josephkelleher8820those people would be wrong and broke.

Thanks 🙏 so much! Welcome to the channel!

nobody? Seems to me my tenants for the past three years must not be the nobodys you mention, because that is exactly what they do. Given all the applicants we had wanting to rent our house and going into a rent bidding war, I'd say your assessment about nobody is wrong. Plus, people spend ridiculous amounts on rent all the time, even multi-million dollar homes and paying $20k/mo.

@@hanwagu9967 The word 'nobody' obviously was a poor choice of words as it is an absolute. Better said, would be that, typically people on average don't buy a 1.6M house and rent it out, but I'm sure that it does happen.

Why is it a false sense of security? If at retirement, they need money they can always sell

@@KZfaqrkt True, but not ideal if one has to start renting when the house was payed off.

@@mcarlo52 they would have been doing that regardless if they didn’t own that home. This is only a problem if the house didnt appreciate much and/or the alternate opportunity cost of that investment was high

@@KZfaqrkt I meant it this way: if one owns their home with no mortgage and it’s worth, say, $200k and they have $50k in saving their net worth is $250k. If they need $10k additional to live on, they may think they could last 25 years. Even if they sell the house, they can’t go that long because they’ll have to use some of that for rent. That’s what I meant by a false sense of security.

I hold similar beliefs to you. I don't think SS will be there for most of us who did the responsible thing and saved for our own retirement. As bad as government spending and debt is today, I plan on seeing both my SS and my Medicare being means tested and limited based on having my own retirement income.

Social Security will always be there as long as there is a dedicated funding for it with the FICA payroll tax. It might come up a little short but they will fix that when the time comes.

@@ws775You put a lot more faith in our government to make good on their promises than I do.

Depends on how much of a nest egg you have left and how much income it can produce.

I have an entire second floor I could rent out. 3 bedrooms and a full bath. I just can't bring myself to do it. Having strangers coming and going... there's no kitchen up there so they would have to eat out or have deliveries all the time which results in more trash, etc. Glad I don't need the income. If I had the income, I would probably use it to buy a rental house.

Back in the day, my Mum would rent to a friend ( usually temporary). Some people called them boarders. It helped both parties out.

I think you're going to see a lot of that in next generation's retired folks, but it's going to be out of financial necessity rather than social benefits.

It is part of your net worth. You can always sell and downgrade to a less expensive property.

@@user-tb7rn1il3q , Sure, having to sell your home because you failed to invest and have no income is a great position to be in... said no one ever! It doesn't produce income unless leveraged or sold. It was explained that we all know it's part of the true definition of net worth. Did you come here to highlight something we already stated?

"100% agree on not including your home in your investible assets - it doesn't generate income." Fixed that for you. Your home equity belongs in your net worth just like the value of that can of soup in your pantry is part of your net worth.

@@danh2716 yes it is. In the dystopian future how much will the can of soup go for? Maybe more than gold or your money making investments

@@greggpurviance7252 This is peak paranoia. And if money making investments are worthless, then no one will need to collect on debts because our money would be worthless. So that's not really relevant