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Financial Question Of The Day #1

Erik Folgate

Would you rather retire with a million dollars in the bank and a mortgage on a $100,000 house, or would rather retire with a million dollar house that is paid off and no money in the bank?

Answer the question and explain why you choose that option.

Categories: FAQs

Erik Folgate
Erik and his wife, Lindzee, live in Orlando, Florida with a baby boy on the way. Erik works as an account manager for a marketing company, and considers counseling friends, family and the readers of Money Crashers his personal ministry to others. Erik became passionate about personal finance and helping others make wise financial decisions after racking up over $20k in credit card and student loan debt within the first two years of college.

Learn more - including co-founders Andrew Schrage and Gyutae Park.

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Comments

  • http://expat.savagenet.com Robert

    That’s pretty easy. With the second option you have nothing in the bank and no option other than to sell the house or unretire. If you sell, you have to pay taxes, losing even more.

    • Heatherbug265

      Yes, but selling the house in a good housing market or when the economy is back to normal may be better than the $1 mil cash. They say real estate is the 2nd most profitable investment besides education.

  • Minimum Wage

    I would rather retire with mortgage on a $100,000 house and a million dollars evenly distributed in a dozen banks. Don’t forget FDIC insurance limits!

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