Conventional wisdom isn’t always so wise. Today we’re discussing a few examples where financial conventional wisdom might lead you astray.
Where will I stay?
There may be a few areas of your financial life where you’re following conventional wisdom. We’ll explain why that isn’t always so wise.
You can’t go wrong with real estate.
There are plenty of people who have had success with real estate investing. There are plenty of others who haven’t. We’re obviously living in a unique time right now where real estate prices have been insane for the last year or two, and it’s worked out extremely well for some people.
We met with a client last week that has 33 rental homes. But owning real estate isn’t always the home run that some people think it is—especially if you don’t have the temperament for it.
There’s good debt and bad debt—and a mortgage is good debt.
Almost anyone would agree that a mortgage is more attractive than credit card debt or a car loan. But that’s different from saying that it’s desirable to have a mortgage.
Mortgage debt is necessary for almost everyone if you want to be a homeowner, but there are plenty of folks who think it’s advantageous to keep it when they should really be getting rid of it sooner rather than later.
Retirement is a chance to relax after an exhausting career.
Most of us aren’t built to relax. Many of us get satisfaction from work. So a lot of people find that the relaxation they were looking forward to in retirement isn’t as gratifying as they expected.
A healthier approach for many people is to look at retirement as a chance to take on new challenges and activities, without worrying so much about whether or not they come with a paycheck.
Listen to the full episode or use the timestamps to jump to a specific section. Thanks for listening! We’ll be back for another show every other Thursday.
1:02 – Real estate
3:22 – Good debt and bad debt
5:33 – Relaxing in retirement
7:01 – Investments not doing well