IS YOUR HOME AN INVESTMENT, or a place to live?

The answer may surprise you.

For as long as I can remember, I have memories of parents, relatives, Grandparents… all talking joyously of the day when their home is paid for. Many families were, for a long long time, singularly focused on having a home that was paid for. I remember the day my parents had their "loan burning party". Those were the good old days.

In today’s world, most people have some type of investments. Whether it be college funds, retirement funds or personal investments, most people have at least some level of exposure in the stock market or mutual funds, or bonds. But many of those same people have either paid off their home, or are focusing substantial resources towards paying off that home.

But what if you can’t pay off your home and grow your nest egg at the same time? What do you do? Well there is no right answer that is the same for every situation, but what you CAN do is be proactive. Look at your options. Make informed decisions. And just like most things in life, moderation may be the key.

Would you be happy with your investments if they were earning 0% for you? Well if you pay off your house that’s almost what you’re doing. If you have completed a financial statement recently you’ll note that your home is probably a pretty good chunk of your "worth". Now lets not forget that even a house that’s paid for is still earning a rate of return equal to appreciation in your area, but it’s a good idea to talk with a qualified, trusted financial planner to decide what’s best for you. Usually the answer is somewhere in the middle, much like any good stock portfolio. If you don’t have a financial planner that you trust, ask one of our Mortgage Planners for a referral, we’ll certainly connect you with someone that can cater a financial plan that works for you.