Today, we're breaking down the "House-Rich, Cash-Poor" epidemic. In the United States, a large number of retirees have most of their wealth tied up in their primary residence, with very little left in liquid savings like 401(k)s, Roth IRAs, or brokerage accounts. A big part of the issue comes from financial gurus, like Dave Ramsey, preaching that paying off your home early is the key to optimizing wealth.
If you own a home, have a mortgage, and are looking for ways to truly optimize and build your wealth, you won't want to miss today's episode.
Key Topics:
- Introducing the Concept: the “House-Rich, Cash-Poor” Epidemic (00:00)
- Why is This Happening? Are Financial “Gurus” like Dave Ramsey and His 7 Baby Steps to Blame? (02:26)
- Case Study of the Two Scenarios: Rushing to Pay off Home (03:20)
- Case Study of the Two Scenarios: NOT Rushing to Pay off Home (05:16)
- The Data to Back it Up (06:19)
- The Same Principles Apply Regardless of Earnings (08:00)
- But What if I Already Paid off My Home?! (08:39)
This Episode is intended to be financial education only and is not intended to be specific tax, legal, or investment advice. Please consult a professional for specific advice. Subscribe to our weekly planning insights newsletter: https://mdrnwealth.com/blog/
If you need specific advice, you can contact us at Advice@mdrnwealth.com or at: https://www.mdrnwealth.com
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