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Don't Pay Off Your Mortgage Early. Do This Instead To Create Real Financial Freedom...
"I'd sleep better at night if my mortgage wasn't hanging over my head every month."
A client told me this on a recent coaching call.
I get it. But I asked him: Do you have...
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Property taxes
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Insurance
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Maintenance
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Utilities
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HOA
Your mortgage is only one payment of many. So paying it off early doesn't give you freedom. It only takes you from 5 payments to 4.
Here's what I would do instead...
1. Build A Wealth Battery
Figure out what you really need every month. For easy math, let's say it's $8.3k, which is $100k/year.
And let's say you owe $1M on your home.
You can pay $1M as fast as possible. And then you're essentially back at zero. No more payment, but no liquidity either.
But what if you invested $1M at 10%/year? The asset pays your mortgage every month, and once it's payed off you're still making that 8$8.3k/mo forever.
Rather that locking all of your equity in your home, you charge up a "wealth battery" you can use to power your life. Then roll the compounding every month so the battery gets bigger and bigger.
2. Run Your Own Numbers... And Don't Get Discouraged
I've done this exercise with enough clients that I'm willing to bet your numbers won't be so clean.
A lot of times when I run the math with people they find they need $2M, $5M, even $10M invested. (Obviously we're talking about full lifestyle expenses.)
When they first hear the idea of building a wealth battery they get excited. But when they see how much they actually need to power their life, it can be discouraging.
What if instead of buying dividend stocks or cash flowing real estate, you unlocked liquidity instead?
3. Instead Of Stacking Dividends, Unlock Liquidity
What does that mean?
A cash flowing asset might pay 6-12%/year. Whereas Bitcoin has averaged 50-70% over the last 10 years.
So you could issue credit against your Bitcoin at a 10% rate. Now you can pay all of your bills and you're still making 40-60% on the base asset.
This is what I mean when I talk about giving every dollar multiple jobs. You get liquidity and appreciation at the same time.
The same dollar exists in multiple places and controls multiple assets at once.
4. "But How Will I Make The Payments???"
This is the #1 question I get whenever I teach this.
This assumes you're borrowing against your Bitcoin so you can quit your job and sit on a beach. But why would that be the case?
The people I work with are creative, industrious people. They don't issue credit so they never have to work again.
They do it to accelerate their wealth, create more opportunities for their families, and enjoy life.
So as long as you're still working and being productive, you have the income to cover the payments.
5. Optimize For The Right Thing
Bitcoiners ask me all the time how much STRC I own. They're excited that Michael Saylor has created a Bitcoin product that blows the competition out of the water.
I'm excited too. But I'm running multiple businesses right now and I don't need the income. So why would I give up 50-70% appreciation for 12% cash flow?
Some day that will change. In the back of my mind I'm thinking I'll take my foot of the gas around 2030. I'll keep working in some capacity but it will look different.
So at that point I can optimize for cash flow instead of appreciation. But then I'll have way more Bitcoin to transfer into STRC or something else.
The point is... you have to be clear on your own goals and needs and optimize accordingly.
So if paying off your mortgage sounds like a dream, the real question isn’t how to get rid of one payment...
It’s how to build a wealth battery so you can sleep at night knowing ALL of your payments are covered.
This obviously isn't meant as a step by step. This is just one example of my wealth engineering strategy.
If you want to learn how to build a strategy for your situation, check out my live event this Thursday. I'll be doing live Q&A so come with your questions and I'll help you specifically.
I'll also teach my "supercharger strategy" to speed this up. You can drastically increase your growth without having earn and invest a single dollar more.
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