New information can lead to making new and different decisions!

• Jimmy replied, "Well, I'm not going to have to sell for some time since I only put a small amount down, I still have plenty leftover to buy food and pay my taxes. In fact, the extra that I invested has actually done quite well." (2:00)
• Paying off your mortgage was taught to us as a positive going back to the Great Depression kind of mentality. (02:41)
• For most people though their home is one of their biggest, if not the biggest, asset that they have. And when you have a home that's paid off, that's a lot of money that you can no longer touch. (02:49)

Quote for the episode: "And depending on mortgage rates at any specific time, the last few decades have shown historically low interest rates, so funds invested outside the home may have the opportunity to grow much more than the interest rate being paid out on the mortgage..." (03:35)

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Welcome to the Enjoy More 30s Family Finance

podcast. The only podcast dedicated to making life more

enjoyable for young families by hitting on the financial topics

that tend to weigh on us, stress us out, and distract our focus

from simply enjoying life.

Hello, and welcome back to the Enjoy More 30s

Family Finance podcast. Our series this time around is

called The Financial Parables of Your Life. So each week, I'm

coming out and talking to you about what may be a story you've

probably heard before, but maybe a somewhat altered version of

the story. Because stories are just an easier way to remember

things that are really important, whether it be

information about our family or finances. So as always, before I

begin, please share and like please leave reviews. I'd love

to reach and help as many young families out there just like you.

So today please join me for our story, The Two Houses on

Pleasantville Avenue. Identical twins Johnny and Jimmy Smith had

just sold their parent's home and received an equal share.

They were both about to move into identical houses on

Pleasantville Avenue, having both obtained identical jobs at

a factory just down the road. Johnny said to his brother,

"Isn't it fortunate we received just enough to buy our houses?"

Jimmy replied, "Well, I decided not to buy my home outright."

"Not buy your home outright? Ha! You must enjoy paying interest

for no reason. You always were the fool between us." As his

brother was clearly not looking for much of a discussion on the

matter, Jimmy simply replied, "You may be right. So we will

see." Some time passed and the factory was unexpectedly shut

down. Johnny and Jimmy both lost their jobs. "What are we going

to do?" shouted Johnny, "we can't buy any food, we can't pay

our taxes, we're going to have to sell our homes!" Jimmy

replied, "Well, I'm not going to have to sell for some time since

I only put a small amount down, I still have plenty leftover to

buy food and pay my taxes. In fact, the extra that I invested

has actually done quite well."

Most people out there make their decisions based upon the things

that they've learned up to this point in time in their lives.

Other ways you can make different types of decisions,

though, would be by learning something new. Now, there's a

lot to be said about creating a flexible situation financially.

Paying off your mortgage was taught to us as a positive going

back to the Great Depression kind of mentality. For most

people though their home is one of their biggest if not the

biggest asset that they have. And when you have a home that's

paid off, that's a lot of money that you can no longer touch.

Taking out a mortgage, which is obviously not wanted to begin

with in a situation where somebody tried to pay off their

house, and it's not even a possibility if you've lost your

job, or selling the home are the only ways of accessing the money

a mortgage or selling it. That's

it. So there's a lot to be said for then keeping assets outside

of the home. Maybe Jimmy from the story would eventually have

to sell his home but he would not be put into a forced duress

situation like his brother Johnny was. And depending on

mortgage rates at any specific time, the last few decades have

shown historically low interest rates, so funds invested outside

the home may have the opportunity to grow much more

than the interest rate being paid out on the mortgage,

especially if it's a tax deductible interest charge for

your situation. So I'm not saying this will 100% make sense

across the board for everyone but it also never hurts to maybe

learn something new.

So thanks for tuning in today and join us for next week's

story, The Crow and The Pitcher. I hope you enjoyed today's

story. Please remember to review and share for others. And if you

need any help, don't hesitate in reaching out. I probably have

helped someone just like you. Until next week. Thanks for

joining me today and I look forward to connecting with you

again soon.

The conversations on this show are

Joe's opinions and provided for general information purposes

only. They do not constitute accounting, legal, tax, or other

professional advice for your specific situation. You should

always seek appropriate advice from a financial advisor,

accountant, lawyer, or other professional before acting upon

any content or information found here first. Joe is affiliated

with New Horizons Wealth Management LLC, a branch office

of TFS Securities, Inc., and TFS Advisory Services an SEC

Registered Investment Advisor, Member FINRA/SIPC.