How an interest only mortgage can help you
An interest only mortgage makes almost no sense to just about all CPA’s and financial planners I have talked to. The way to understand a good reason to pay for your house in this way is to see the whole picture. You want to get in a cash liquid position. The reason you want to be liquid is so that you never have to worry about finances and keep on trucking building your business and getting into opportunities.
By getting on a 30 year interest only home mortgage you get significant tax advantages. You can take these savings by deducting the yearly amount of taxes you send to the IRS each month. You will end up paying several hundred dollars less each month through this strategy and can send the savings over to an investment account that acts as your own bank.
You will always have a traditional bank account but the investment vehicle you use to move money from your home mortgage to an insurance plan will be the way you go super liquid with your money. This system allows you to get to your money tax free and tax deferred by taking loans out on your money. Because you are getting a loan on your own money it never goes on your income tax form.
The end result of this is to allow your money to grow through diversified investments while not paying taxes on it and allowing it to grow tax deferred. A great benefit to leaving it in a life insurance plan is that your family can receive without paying an inheritance tax or estate tax. Your family will love you and you will love you as you can borrow on this money whenever you need it.
In summary a good financial plan will not care about a depression era strategy of having your home paid off. The best strategy at this point in time is to have real liquid assets in appreciating assets that offer tax savings and good interest levels. By structuring your finances in smart way you never have to worry about your financial position.
This article is about how an interest only mortgage often creates substantial benefits for the investor looking to set up a long term investment account. In Texas financial planners set up a combination of an interest only mortgage with a life insurance policy to make compounded interest money from investments. This Texas electricity quick money building program works because it follows proven systems.
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