Protecting Your Home for Your Family

We all want to live the Great American Dream. We want the opportunity for prosperity and success, and an upward social mobility for our family and children, achieved through hard work in a society with few barriers.  And a big part of that dream has been to own a home free and clear, with no mortgage. Having a roof over our head is one of our most basic needs.  Plus, it gives us safety, security, and pride.  It would be a nightmare to lose it.  So, how do we safeguard our home for our family?

Most people believe the best way is to use a 15-year mortgage to pay off the home as soon as possible. Others say to put extra payments towards a 30-year mortgage.  The problem with both of these plans is that until you actually pay off the mortgage, they don’t protect your family against the loss of the home.

What happens if you become critically ill, suffer an accident, become disabled, or lose your job?  Where will you get the money to make your mortgage payments?

Consider, if you have been putting all of your money into paying off your home early, then isn’t all your savings tied up in the equity of the home? If you don’t have an income are the banks going to give you a loan to take equity out of your house? Of course not!  And the worst part is that it doesn’t matter if you owe $2,000 or $200,000 on your home, if you can’t make your monthly mortgage payments, they are going to foreclose, and take your home. If that happens, then all of those extra payments were for naught.  Nobody wants that!

Let me ask you, if you could have a tax write-off, how long do you want it?  As long as possible!  And, how big a tax write-off do you want? As big as you can get! What is one of your last big tax write-offs? Isn’t it the interest on your mortgage? Does it make sense to not take advantage of this big tax write-off?

What if you could put money in a separate account that would grow so you can pay off your home faster, while maintaining the tax write-off as long as possible? On top of that, what if your money would grow tax free, and had no government restrictions on how much you can contribute to it, or penalties for withdrawals.  What if that money could be used for other financial priorities like replacing lost income, funding your retirement, or funding your child’s education? Finally, what if it was a self-completing plan that would protect your family against death and disability?  Would that be a dream come true?