The Hidden Risks of Paying Off Your Mortgage Too Quickly
We take a comprehensive look at your financial landscape—considering both short- and long-term goals, family dynamics, and shifting priorities. Our dedicated team is here to guide you through every stage of the planning process and every major life milestone.
Restricted Access to Funds
If you chose to put extra money toward your mortgage and then faced a job loss or health crisis that left you without income for an extended period, which would you prefer? Quick access to cash with a simple phone call—or the risk of foreclosure?
This is the importance of liquidity. Having access to cash when life takes an unexpected turn can mean the difference between stability and financial disaster. See Doug’s story for a firsthand account of what a lack of liquidity ultimately cost him.
The Risk of Earning No Return
Every time you put extra cash into your property, you sacrifice the opportunity for that money to earn a return elsewhere. Yes, your equity may increase—but equity itself always delivers the same rate of return: zero.
At Risk of Foreclosure
Every advisor at United Financial Planning Group holds the prestigious CERTIFIED FINANCIAL PLANNER™ designation, a mark of trust and excellence in financial planning. This ensures that every recommendation we provide is made solely in your best interest. We are committed to transparency and integrity—never selling products or collecting commissions. Instead, our focus is on delivering truly unbiased guidance tailored to your unique goals.
Strengthen Your Financial Security with Strategic Equity Management
Side Fund = Smart Growth
Imagine paying 4% interest on your mortgage. Instead of sending extra payments to the bank, what if you redirected that money into a conservative side fund earning a 5–10% historical average rate of return? Over time, the difference could be substantial—potentially more than $100,000 in 10 years and $700,000 or more in 30 years.
This is the same type of strategy banks use to earn millions. For individuals, a properly structured, maximum-funded Indexed Universal Life (IUL) policy—what we call an IUL Legacy by Design Fund—can serve as that powerful side fund, offering both growth potential and long-term security.
Greater Flexibility & Security
Rather than sending extra principal payments to your mortgage lender, you can redirect that money into a financial vehicle designed to earn a 5%–10% historical average rate of return—without being subject to market volatility. This approach not only provides greater liquidity for unexpected emergencies but can also position you to pay off your home faster than traditional extra mortgage payments.
Stronger Security & Control
Banks generally prefer keeping homes occupied rather than vacant. For this reason, it’s not uncommon for lenders to work with homeowners who have little or no equity for months—sometimes even years—before moving toward foreclosure.”
The Advantage of a Higher Mortgage Balance
By maintaining a higher mortgage balance, you may actually reduce your risk of lawsuits. After all, who wants to go after someone with little to no home equity? This approach can serve as an added layer of asset protection.
At United, we believe homes are meant to house families—not store cash. Instead of sending extra principal payments to your lender, consider redirecting that money into a safe, conservative side fund. These strategies can offer competitive returns, protect your principal, and provide greater liquidity for life’s uncertainties. In some cases, advanced mortgage planning can even put idle equity to work, helping you build wealth more strategically.
Planning for retirement is essential to your long-term financial well-being. At Finovate, our experienced team collaborates with you to identify your retirement goals and crafts a tailored, comprehensive strategy to help you achieve them with confidence.
Your Goals, Our Commitment
We’ve helped countless successful individuals grow and protect their wealth with strategies designed for safety and predictability. With historical annual average returns of 5–10%—tax-free, our clients enjoy the confidence of knowing their money is working for them.
What does this mean in real life?
For every $1 million accumulated, you could generate $70,000–$100,000 in annual, tax-free retirement income—without ever touching your principal. That’s what true financial freedom looks like.
