Taking equity out of ones home, another thing you can't do here (and people wouldn't understand). Of course we saw in 2009 that it led to plenty of people losing their home...
You can't easily do it in Texas too because locals were burned on this before anyone else in US (in 1987) when people were mass-mailing the keys to their houses to lenders, apparently.
Typically, no cash-out refinancing. I know some people in CA that did multiple cash outs and now have a gigantic mortgage.
Still, there is some equity, but the cushion is much smaller that it should have been otherwise.
if you have a 700,000 home with 100% equity. You do not take out a loan on it.
Unless rates drop to 2-3%
My example is 2,000,000 wealth
700,000 home
400,000 bond driven 401 k gets 5%
100,000 gold, silver
that is 1,200,000 wealth
and you have 800,000 more wealth do do as you please.
that adds to 2,000,000 wealth
the 401k earns 20k a year
you have 7,000 take home in pensions. since I said you have pensions you have to use some of the 401k eventually maybe now so 20,000 is the juice it gets. pull 4,000 and that is 2,000 a month but it is taxable so pull 30,000 this means the 402k will last close to a lifetime and you actuall income after taxes is 9,000 a month
This person has the ability to fuck around with 800,000 anyway they want to. Stock ,bonds, btc shit coins what ever. But they are rare and they are dying every day as I type this out.
They can do an equity loan if rates drop to 2 or 3%. I said the chances are likely less than 1 in 25 Americans are in this spot.
They can have a mixed blend of what ever the they invest. They are rare.
Most Americans are paycheck to paycheck and will work way past retirement ages. 70 or later is common.For these people savings in a bank are meh at best. They need to do 3 or more different plays even if the plays are $25 a month for each month.
Poll
