You may not be able to change many of life’s problems, but you can change how you face them. Imagine with me what life could be if you broke the mold of financial crisis in your family and left a legacy of financial wisdom instead.
I’ve already explained the differences between wise and unwise debt. Now, I want to talk more about debt — specifically home mortgages. Let’s discuss two beliefs about a home mortgage that could be detrimental to your financial health.
Budget: a word that causes stress and anxiety for some while helping others bring order to their lives. Do you wish you had something to help you get your finances in order but believe creating a budget would be impossible?
There are as many opinions about budgeting as there are about politics or religion. However, opinions are just that — opinions. Until you put your opinion to the test, you won’t know if it simply is a personal preference or something based on truth and facts.
What if you could use the magic of compound interest for decades (i.e., a child policy), yet never pay taxes above basis because you take distributions as a loan?
It is not deemed as income, is not subject to required minimum distributions, and will not affect taxation on social security if in a life insurance policy. Death benefits are tax-free as well.
As a parent or grandparent, you can leave a legacy by using the magic of compound interest.
