Financial Question Of The Day #1
December 13, 2007 by Erik Folgate
Filed under FAQs
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.
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.
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!