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Missed the boat?

A short time ago, maybe 15 or 30 years ago, a young family juggled the idea of buying a home or simply just staying put in there 3 bedroom cozy apartment in the Bay Area. They thought about how expensive the home was at the time and how much more affordable the rental was in comparison. Some time had passed and they finally made the decision to accept the 10% rate with about 5% down. The husband was in disbelief over the whole process, he could not stomach the idea of buying a home at todays cost. The family begin to grow and blossom into the typical American dream, both husband and wife adjusted their spending habits and made it work. Together they realized better credit, better insurance rates, some tax benefit and most importantly they had staved off inflation. Their mortgage was the same today as it was 10 years ago. The young family watched the cost of homes soar in disbelief, they watched evictions and hyper rental increases happen to people that had lived in their apartments for decades, most importantly the young family beat the system, it is now 2000, but they were paying a mortgage from 1990.

A Little more time had passed and both the kids were of college age, the next hurdle would be how they would stay afloat while the tuition bills came in. The wife was also dealing with some health issues and may require Long Term Healthcare,

Fortunately ,this duo had paid their mortgage onetime and sometimes extra when times were good. They paid all utilities wth about 10% more, maximized their 401k contributions, selected group insurance from work and selected a small family life insurance policy.

They had equity, tons of it, the family took out a line for 100k which resulted in an interest only payment of $350 per month for 10 years.

The family leveraged their hard work to pay off smaller high interest debt, some tuition, and cushion for an emergency. As it turns out this investment was the focal point of their families survival. Some years have passed and the family was considering down sizing their current home. They home is now valued at about 5 times more than what they paid some 20 years ago. The home sold easily as it was well kept and updated frequently. The family bought their dream home and helped both of their daughters buy their own homes.

Generational wealth has began here, somberly scarifies provide comfort,security, peace of mind. And yes 20 years ago, that home of 110k was a lot to them, but means much more today. Getting focused and realizing your dreams is simply just possible. Preparing for the future started yesterday.

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