Rich Habits Podcast Q&A: Assuming a 2.5% Mortgage, Stock Lending, & Buying vs Leasing
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Mar 27, 2025 The hosts dive into the complexities of assumable mortgages, offering strategies for those struggling with high payments. They emphasize responsible financial planning and the impact of housing costs on financial health. The advantages of Fannie Mae loans are explored, particularly for new investors. The conversation shifts to the importance of insurance in protecting assets, especially in high-risk areas. Listeners gain valuable insights into the implications of education choices in today's job market, and a lively Q&A wraps up the discussion!
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Affordability over Borrowing Power
- Don't buy a house based on what you can borrow, buy based on what you can afford.
- Prioritize finding a home with a monthly payment that fits comfortably within your budget, including upkeep and HOA fees.
Retirement and Career Transition Planning
- Prioritize maximizing Roth IRA and 401k contributions early in your career.
- Build a bridge account with accessible funds for career transitions.
Stock Lending vs. Long-Term Investing
- Stock lending involves letting others borrow your shares for a fee, taxed as ordinary income.
- While potentially lucrative, consistent long-term S&P 500 investing remains the most reliable wealth-building strategy.