Have a podcast in 30 days

Without headaches or hassles

Highlights from this episode include:

  • Why making your house a home destroys its value as an investment (4:38)
  • Is the Home Money Monster consuming your life savings? (5:19)
  • Is your mortgage robbing you of your wealth? (6:45)
  • Consider these stocks instead of home upgrades to get exponentially more bang for your buck (8:14)
  • Scientific evidence that emotional attachment to your home is costing you money (13:44)
  • Should you upgrade or remodel your home? You might enjoy doing this more… (16:41)
Read Full Transcript

Do you hate the thought of working past 55 or 60? Do you hate not being able to live the life you deserve today? Do you hate not knowing what your financial future looks like? It's time to stop doing what you hate, here's your host, Mr. Harold Green.

Welcome to the show everybody. This is Harold Green and it is time to stop doing what you hate. How's everybody doing today? Today's show, your house is a money monster. Now for the wealthy, owning a home is really not a problem. So I'm going to assume that my listeners are not wealthy yet, but you are on your way. So what's good in your hood as they like to say? In other words, what's it like where you live? Do you live in a super nice neighborhood with great neighbors? Do you live in one of these places where you can just walk out in your jammies and grab the paper without fear or worry?

00:58 Is it, is it a safe place? Is it comfortable? Is it cozy? And we're going to be talking about owning a home today and what is like owning a home and all that goes into that. But I want to take a minute and talk to you about my neighborhood. Now, I live in the beautiful state of Hawaii and I live in a condo and I want to talk to you a little bit about condo life because there are some pros and cons to living in a condo. And I'm sure some of you guys live in a condo, but I've, I've grown up living in condo style homes, town homes, you know, from an early age. And so I guess I'm just conditioned to living in a condo now. We live in a condo, it's a, you know, close to the ocean or whatnot. And actually right there on a Marina, I like that aspect of it because, you know, I can grab a cup of coffee and walk downstairs and sit in the gazebo and look out at the ocean, look out at the sun, and just really enjoy that.

01:59 And that's, that's one of the major perks. And along with the fact that I do not have to take off work to cut grass or trim trees or you know, deal with the neighbor and their trees and different things like that. And so I really liked that about the condo. My dislikes about the condo is, you know, you get neighbors and sometimes they're not the best of neighbors and so it's a little cramped in condos sometimes and, but I really liked the ability just to be able to drop everything, locked the door and my wife and I can take vacation, not have to worry about asking someone to check on the house. Now I, I believe that we all desire to live in a great place and we all want what's best for our families and our house is our home. But if you feel it's time for an upgrade and you're just not sure how to make that happen, then I got to tell you, you have to learn about rapid retire.

03:00 Now, rapid puts you in a position to retire seven to 10 years sooner than most people. And it can also help you achieve that desired dream home. If you don't mind, maybe pushing back some of your other goals and, and, and pushing back retirement just a little bit and we'll talk about rapid later. But I want to put the disclosure out there. And using rapid, there can be no guarantees made that you will be in a position to retire seven to 10 years sooner or any specific period. And results of the program will vary. We're going to talk about investments today. So past performance is no guarantee of future results. All investments, including real estate are speculative in nature and involve substantial risk of loss. We encourage our investors to invest carefully. We also encourage investors to get personal advice from their own professional investment advisors and to make an independent investigation before acting on any information that I share with you on my show.

03:58 But for most of you, your house is a money monster and I believe that because they, your houses eat a lot of money, they eat money and they eat lots of it. Okay. There's a popular argument out there that a lot of people bring up to me that their homes are an investment. And I have a little bit of a problem with that is true for some people but not for others. And the key word is home. So if you've made your house into a home, then more than likely you are not going to sell that house and take the profits you made out of it, right? Unless you're, you know, you're buying that house to flip it and then and, and sell it in so many years and take the money and do something different. Your house is really not an investment, right?

04:46 I say an investment generates a return and so if your home is not generating a return, then you really can't call that investment unless an investment unless you plan on selling it and moving out. Now this money monster has three heads. Now you guys remember that movie Godzilla where he's fighting with the, the three headed dragon and the, the dragon had a, the head in the middle. It was just huge and went on the, one of the trippy things I liked about that Godzilla movie is where, you know, he was injured and he, he was down in that cave or whatever it was, and they took the submersible down there and then they, they lit him up with a, a nuke bomb. Can you imagine that blowing up a, a monster? Well, the Nuke bomb and it actually gave him energy. But anyway, that monster that head in the middle was just huge.

05:37 But anyway, I'm going to share it with you. Why is it that your house is a money monster? Sorry to ramble about that, but are you guys ready? All right. One, two, three. Let's get it now. This three headed monster is the very first thing I look for when I interview new clients. Because if I can't get that monster to work in clients favor, then we're, we're pretty much done. But if I can get that monster to work and my clients favor, then we pretty much got it beat from early on. I can tell you what kind of client they're going to be and whether or not we're going to be successful based on how they're handling the issue of their home. All right, so money monster, number one. The first one is the mortgage monster. All right? Are there a lot of different types of mortgages out there?

06:21 But most of the time I find people in the wrong mortgage. Okay. So people will come in and sometimes they're in a 10 year mortgage when they should be in a 30 year mortgage based on their dreams and their goals. Sometimes they're in a 30 a mortgage and they should be in a 15 year mortgage. And so a lot of times they take on mortgages based on how they feel or what they're being sold or you know, quite frankly what they're being told to do. And I think that's a very bad thing. So if you're other amounts of refinance your house to take on a mortgage, you really have to sit down with your financial advisor and make sure that your, the mortgage that you are taking a fits into your long term financial plan. So you all know about the 30 year mortgage, the 20th mortgage, the 15 year mortgage, and the 10 year mortgage.

07:08 Those are all pretty popular. But some of the mortgages out there, many people don't think about our adjustable rate mortgages. Now, some of them are good, some of them are bad. It just kinda depends on what your goals are. But later on I'm going to have a followup to this show. I'm going to have my buddy on, I call him mortgage Matt, and he's going to help us dissect mortgages in a lot greater detail in a future show and basically give us some advice as to if our goals are ABC what type of mortgage we should actually be N. Okay, that's the later show money monster. Number two, I call it the maintenance monsters. So I already put the disclosure out there, but home maintenance is a very big deal and people are spending billions upon billions of dollars growing the company stocks of stores that, you know, help people remodel their homes, do maintenance on their homes and so on and so forth.

08:10 So I want to talk to you a little bit about some of the stocks that are out there, and I'm not saying go out and buy these stocks. That is not what I'm saying. I'm just putting this information out there to prove a point to you. So home Depot stock is up about 148% over the last five years. That's a lot of buying equipment and different things like that. For your home, low stock, it's up about 96.5% some of the other stock that relate to home security systems and things like that are up a whopping 549% if you were to put $100,000 in there, you would be a 500 grand in five years. Because of the way consumers are going about managing and addressing their homes. Okay? People really want to take care of the homes, and I'll get into more about that later, but one more stock out there, home advisor or whatnot, they're up about 368% okay.

09:18 Now based on a little research I did buy [inaudible] property management.com and it's, you know, just check out the website yourself. $394 billion was spent and home improvement cells and the United States and 2018 that's a lot of money. Therefore, casting the revenue for do it yourself, home improvement markets in 2025 $680 billion, 5.5% growth in U S home improvement industry in 2019 so it's going to grow a little bit where some people out there are saying that, you know, 2020 is going to be a flat year, maybe for some industries. But for the home improvement industry, it looks like they're going to be rowing by about 5.5% so go do that research, check it out yourself before you decide to invest stocks in those companies. And basically 68% of consumers who visit home improvement stores, they visit the websites. Okay. So as a planner, here's one of the things that are, it's one of my biggest pet peeves.

10:21 I really hate seeing people house-rich and cash-poor. They have a lot of their money tied up in their homes and they can't get that money out unless they do a couple of different things. They take loans on the house, okay. Or they sell their homes. But here's one of the major issues that's hurting retirement. Retirees have over 66% of their net worth taught up in their homes. And you know why? It's because of money. Monster number three, the mindset monster, it's head is in the middle and there is a big vein that goes from its brain directly to its heart. And here's, and here's the thing, how do you feel about your home? I'll talk to you about how I feel about mine, but do you love it? Do you, do you love where you live? Do, do you, do you have that house just the way you want it?

11:18 I mean, you got all the upgrades and such and you got your furniture and it's just, it's just your Oasis or, or do you hate it? Are there some things that you really wish you could fix or take care of it? Today, right now I will admit that I'm a little bit torn and my kids are out of the house and it's just, it's just me and my wife. And so right now we are considering some upgrades, but in Hawaii they are going to be quite costly. So it's going to cost us about $150,000 to, to redo our place. And so when you walk into our condo, it's pretty big. It's about 1600 square feet, two bedroom condo. We have a huge Lanai, we have about nine, 10 foot ceilings. It's just a, it's a really nice place. And so you walk in, there's marble floor and so if you're going to remodel, you probably have to tear up that marble floor.

12:14 And you know, if you're going to put in flooring and different things like that. So, you know, we've got some quotes and it's going to be very, very expensive. And so the question I've been asking myself is, do we sell the condo and move to a house? And then, you know, use those funds towards that place. Or do we keep the place that we have now and do the upgrades? And I'll tell you a little bit later on what I decided to do but according to house beautiful.com, our house is more than just four walls and a place to eat and sleep. One of the tricky things about this is that there was an article that I read and it talks about a, a study that was done. And so what they did was they put these people under the EEG cap and they were stimulated to think about a given topic for three and a half minutes.

13:07 And then every 10 seconds a word or a phrase on the topic, happy home, homesickness, friends and pets and home technology would be played over loud speakers to monitor their emotional responses. And so it says, participants experienced the same strong positive emotions about their home as they do towards their beloved pets, close friends, and then scientifically validating the attachment and happiness we feel towards our homes. Now, this is interesting for the, for the, for the people with smart home technology, higher levels of brain activity and positive emotions were recorded when thinking about their home than those without any form of smart home system at all. So it's kind of like Alexa, you know, where did I, where did I put those peas or Alexa, how do I make a some bang and beef stew? To be honest, I think, you know, we all want to protect what, what makes us happy, right?

14:06 We want to protect our kids, protect our spouses, you know, protect maybe our cars or whatever it might be, but we want to take care of the things that make us happy. And so when we think of the memories that we made and our homes, it takes us to a happy place. And most of us still have the videos I do when my kids were opening up Christmas presents, you know, when they're young and you know, it's just an awesome time. And you know, we've had some get-togethers at our place. Not a lot because my wife and I were very, you know, I work a lot and so I'm always with people and so we, we tend to go out with our friends and things like that. But think about all the get-togethers you've had at your place, all the celebrations and the, the holiday get togethers and you know, the poker night and some of the big things like baby first steps and so on and so forth.

14:54 And most of us are super connected emotionally to our homes. And quite frankly, some of us are even over connected. And here's why. Being overconnected can be a big problem now somewhere in life you're going to have to make some financial sacrifices. You're going to have to make some financial sacrifices in order to move on to the next phase of life. And when you're young, one of those things you may want to do is you may want to upgrade your, your neighborhood and get a different home and it's going to require letting go when you're older. You may have to downsize and move elsewhere and you know what, this can be really, really tough. I seen a lot of single senior citizens struggle with that fact. So here's, here's my home buying experience. I've, I've rented, I've owned, I bought, I've sold at one point I own this place.

15:48 And so we simply sold it just for a cash flow. And what it did was it, it saved us a tremendous amount of money that I turned around and reinvest it in something different. I also ended up one, one time short, selling a property for a better opportunity and we can get into the dynamics of dynamics of that later. But I took that money, invested in a business opportunity and that allowed me to pretty much send the kids to college wherever they wanted to go. So sometimes we, we, we have to make those decisions. And had I held onto that place, I'm not sure where I'd be today. So I've decided for now not to do any upgrades on my place or buy a new house. You know, why? Because I want to travel a little bit. You know, I want to take some time and we've built up the company and we're doing some different things now, but I want to settle things down a little bit and travel.

16:38 And you know when I call that, I call that making moves and sometimes we have to be bold to make the kind of moves that we have to make these moves. They can and will move us closer. It's our goal of being financially independent, right? Isn't that what we are all out for is to be financially independent. And the best move I can tell you right now that you can make is the move to create a financial plan if you have not done so. Now I'm not talking about any kind of financial plan, but I am talking about a step by step plan that is going to allow you to make the monsters and your finances work for you and not against you. And yes, I can help you with that. You know how, go to my website, retirenowretirewell.com download the rapid retire brochure. Fill out that game, Tinder foreman, send it in and I'm going to be in touch with you to help you stop doing what you hate. So if you're not quite happy with your neighborhood and you want to upgrade, I can help you with that. If you have a home and it's in your desire neighborhood, and maybe you just want to remodel and things like that, fill out that form, send it in and I'll see what I can do

17:50 To help you. And so until next time, one, two, three, let's get it.

This is ThePodcastFactory.com

Have a podcast in 30 days

Without headaches or hassles


Copyright Marketing 2.0 16877 E.Colonial Dr #203 Orlando, FL 32820