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Getting Good Debt Gone | Series 9.8
Episode 83rd October 2022 • Enjoy More 30s: Family Finance • Joseph P. Okaly
00:00:00 00:04:03

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Shownotes

If you had the option to either save 4% or make 7%, which would you choose?

  • Certain debts are regarded as good and so getting rid of something good would have to then generally be regarded as a bad thing to do. (01:07)
  • If you had the option to save 4% or make 7%, the best answer for those who do not want to be a millionaire would be to save 4%. Saving 4% is obviously much less than making 7. (01:24)
  • This can apply to things such as lower interest student loans, or even just switching to a 15 year mortgage instead of a 30 year, forcing you to commit to paying back more money more quickly into a perhaps very low or even potentially tax deductible, good debt like a mortgage. (01:57)

Quote for the episode: "So paying off a 4% mortgage for example, early with extra payments, instead of taking that same exact money and putting it into a well diversified investment that may make 7% for example long term is a great strategy to not be a millionaire." (01:39)

Securities offered through TFS Securities, Inc., and Advisory Services through TFS Advisory Services, an SEC Registered Investment Advisor Member FINRA/SIPC. TFS Securities, Inc., is located at 437 Newman Springs Road, Lincroft, NJ 07738 (732) 758-9300.

Transcripts

Voiceover Audio:

Welcome to the Enjoy More 30s Family Finance

Voiceover Audio:

podcast. The only podcast dedicated to making life more

Voiceover Audio:

enjoyable for young families by hitting on the financial topics

Voiceover Audio:

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

Voiceover Audio:

from simply enjoying life.

Joseph Okaly:

Hello, and welcome to the Enjoy More 30s Family

Joseph Okaly:

Finance podcast. For all those people out there trying their

Joseph Okaly:

best to avoid being financially secure, we have our series 10

Joseph Okaly:

Ways To Not Be a Millionaire. Now if you actually do want to

Joseph Okaly:

be a millionaire not to worry, this series isn't just for those

Joseph Okaly:

people who may be looking for financial ruin. If you avoid

Joseph Okaly:

doing these 10 things and you could be well on your way to

Joseph Okaly:

millionaire-hood as well. Each week I'll share a quick step in

Joseph Okaly:

this how to not be a millionaire process so you know what to do

Joseph Okaly:

or hopefully what to avoid. As always, before I begin, please

Joseph Okaly:

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

Joseph Okaly:

help as many young families out there just like you.

Joseph Okaly:

Today's great tip on how to not be a millionaire is Getting Good

Joseph Okaly:

Debt Gone. Certain debts are regarded as good and so getting

Joseph Okaly:

rid of something good would have to then generally be regarded as

Joseph Okaly:

a bad thing to do. And as you know, doing something bad for

Joseph Okaly:

your finances is a great way to not be a millionaire. If you had

Joseph Okaly:

the option to save 4% or make 7%, the best answer for those

Joseph Okaly:

who do not want to be a millionaire would be to save 4%.

Joseph Okaly:

Saving 4% is obviously much less than making 7. So paying off a

Joseph Okaly:

4% mortgage for example, early with extra payments, instead of

Joseph Okaly:

taking that same exact money and putting it into a well

Joseph Okaly:

diversified investment that may make 7% for example long term is

Joseph Okaly:

a great strategy to not be a millionaire. This can apply to

Joseph Okaly:

things such as lower interest student loans, or even just

Joseph Okaly:

switching to a 15 year mortgage instead of a 30 year, forcing

Joseph Okaly:

you to commit to paying back more money more quickly into a

Joseph Okaly:

perhaps very low or even potentially tax deductible, good

Joseph Okaly:

debt like a mortgage. Furthermore, you lock more funds

Joseph Okaly:

into your home in that example, creating less liquidity and

Joseph Okaly:

potentially forcing yourself to have to sell your home if you

Joseph Okaly:

were to wind up in financial distress. If you do want to be a

Joseph Okaly:

millionaire, then you may want to consider doing the exact

Joseph Okaly:

opposite of this. If for example, you took those same

Joseph Okaly:

funds and invested them in our example, you could potentially

Joseph Okaly:

be making 7% vs saving that 4%. Additionally, if you had a

Joseph Okaly:

financial distress situation, you may not have to be

Joseph Okaly:

immediately going to selling your house because you would

Joseph Okaly:

have more money available to you outside of your home to

Joseph Okaly:

potentially hold you over. Overall I think it is more than

Joseph Okaly:

clear, getting good debt gone is a fantastic way to not be a millionaire.

Joseph Okaly:

Thanks for tuning in today and join us for next week's episode

Joseph Okaly:

on how to not be a millionaire, Saving For School Over

Joseph Okaly:

Retirement. As always, please remember to review and share for

Joseph Okaly:

others. And if you need any help, don't hesitate in reaching

Joseph Okaly:

out. I probably have helped someone just like you. Until

Joseph Okaly:

next week. Thanks for joining me today, and I look forward to

Joseph Okaly:

connecting with you again soon.

Voiceover Audio:

The conversations on this show are

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Joe's opinions and provided for general information purposes

Voiceover Audio:

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

Voiceover Audio:

professional advice for your specific situation. You should

Voiceover Audio:

always seek appropriate advice from a financial advisor,

Voiceover Audio:

accountant, lawyer, or other professional before acting upon

Voiceover Audio:

any content or information found here first. Joe is affiliated

Voiceover Audio:

with New Horizons Wealth Management LLC, a branch office

Voiceover Audio:

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

Voiceover Audio:

Registered Investment Advisor, Member FINRA/SIPC.

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