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Exercising smart financial saving and planning is certainly one of the best ways to prepare for retirement, but not necessarily the only way here in Utah. Contributing a percentage of your salary to a 401(k) and learning about pension plans offered by your employer are just a few of many ways to build up a cushy retirement.
One method that seems to be rapidly increasing in popularity is real estate investments and other such similar entrepreneurial opportunities provided by companies that offer different seminars and training for individuals looking to ensure financial stability and freedom. The training tools offered teach different methods and programs on how to achieve this. One such, very simple, program does just that using mortgages. Read on to find out how.
In the simplest of terms, here is how this particular program works. Most people still have mortgages and owe money on their current home. A majority of those individuals regularly pay more than the required monthly payment each month for the mortgage, in hopes of paying off the house quicker. Your home is going to be worth the same amount of money at the end of the mortgage, regardless of how much you paid each month; paying more than your monthly minimum payment does not increase the value of the home. The idea behind the program is to pay just the monthly minimum and invest any additional money instead of putting it towards the mortgage. For example, if your monthly minimum mortgage payment is $1500 and you plan on paying $2000, take the additional $500 and invest it.
The theory is that regardless of how much you pay monthly, your house is worth the same at the end of your mortgage; paying more than the minimum payment does not increase the value of the home. Therefore, why not invest the additional money? So at the end of a 30 year mortgage, whether you paid the monthly minimum or more than that, your house is still worth only $250,000. Now if you had invested that additional money, you theoretically could now have a home worth $250,000 plus $50,000 in investments.
Obviously, one should thoroughly research and be informed of any and all options before making any long-term ontario pension. The assets you incur will only be as conclusive and reliable as the investments you make.
Senate Finance