Day/ Post 9
Right Place Wrong Time, as a Boomer, many of you have been in the Right Place at the Wrong Time.
Great Example was Buying Your First Home in the 1970s
Buying our first home in the early nineteen seventies, a 5 Year Fixed Mortgage was around 9.5%, “okay Millennials” you read that right and by 1980 and 1981, 5 years fixed over 18%.
The good news is if you bought a home in almost any city in Canada in the early 70s and kept this home 30 to 40 years, you built your retirement nest egg.
Notice the amount of TV advertising from Reverse Mortgage Companies who are operating a profitable business by convincing anyone over 55 years of age to grab tax-free cash and make no payments until you sell your home.
Are you leaving your financial legacy to them?
Not everyone is going to leave all this equity to big finance companies; some of you have been in the right place and waited for the right time to catch up.
I have friends who bought their first home two doors down from us and even though we have gone to own four more homes during that time. They stayed put and paid off their home, renovated it several times, and when the subprime crisis hit, they watched the Canadian Dollar soar pass the American Dollar.
They had no mortgage balance on their home and saw the prices of real estate crash in the Sunshine Belt of the USA. They bought a vacation home that needed some TLC. (Tender Loving Care)
Their TLC costs more than their vacation house, and they now have two homes, no mortgages. Their home value is still considerably higher than when they first bought, and anyone who lives in the American Sunbelt knows the values of real estate bounced back from the subprime days of 2008/9.
In these years, I have seen folks build an investment portfolio from equity growth and a low-interest environment that will not be ending anytime soon.
Does living in the coronavirus pandemic feel like the wrong time?
If you have been watching North America and many other countries over the last number of weeks or months, Bending the Coronavirus Curve seems like a reality.
Are you taking advantage of the Right Place (solace, safety and security of your home)?
Wrong Time, the value of your retirement portfolio and the importance of healthy, viable companies stock prices driving down similar to those of the subprime days, 2008/9?
Or are you moving away from the opportunities, sitting on the couch and watching the drama unfold, keeping track of the new cases and the deaths?
The challenge for you today is to turn off the Squawk Box (Smart Phone, Tablet, Computer, TV) and decide if you are in the Right Place at the Wrong Time and how you can reap the rewards of putting your time to work.
From Our Happy Place to Yours, Find Solace, Safety and Security in Your Home Until Our Next Post
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