I recommend not paying down a mortgage unless you can pay off the entire thing—and even then, I'd think long and hard about whether that makes sense in your overall financial plan. Remember, the rate of return on paying down debt is exactly equal to the after-tax cost of that debt.

Type Examples Sources Impact Oppressive debt Payday loans, credit card balances Loan sharks, credit card companies Oppresses debt holders and makes them continually poorer Working debt Mortgages, small business loans, low-cost student debt Mortgage lenders, SBA loans Has a real cost but enables things that might not otherwise be possible Enriching

From my experience, new house or old house, you should anticipate 2 percent to 3 percent of the building value in expenses.

I don't understand why Americans seem to hate cash. They rush to pay down debt at the expense of building up cash reserves, putting themselves at real risk. And what do they get for paying down a big chunk of principal on an amortized loan? A back rub? A free Starbucks latte? They get another bill the next month. This is particularly notable in the

LOWER YOUR DEBT RATIO BY BUILDING UP ASSETS While you are in Phase 2, I strongly suggest you reduce your debt ratio by building up your assets rather than paying down your debt. This gives you a larger base of resources, which will increase your liquidity and flexibility and potentially enable you to capture the spread or earn a rate of return on y

To build wealth and mitigate risk, divide your investment assets into three buckets: Conservative, Core, and Aggressive.

THE DIFFERENCE BETWEEN SAVING AND INVESTING Savings and investing are not the same things. When you save, you set aside money for a specific goal within a specific time period. When you invest, you have longer-term objectives and may or may not need the money along the way. It

I consider these foundational facts for your financial journey, the boundaries to keep us on course: All debt is not equal: There are different types of debt. Your rate of return for paying down debt is exactly equal to your after-tax cost of debt. Sh*t happens—Value liquidity.

If some assets in your Core portfolio aren't losing money, then: