The Two Houses on Pleasantville Avenue | Series 8.5 - Enjoy More 30s: Family Finance

Episode 5

The Two Houses on Pleasantville Avenue | Series 8.5

Published on: 13th June, 2022

New information can lead to making new and different decisions!

  • Jimmy replied, "Well, I'm not going to have to sell for some time since I only put a small amount down, I still have plenty leftover to buy food and pay my taxes. In fact, the extra that I invested has actually done quite well." (2:00)
  • Paying off your mortgage was taught to us as a positive going back to the Great Depression kind of mentality. (02:41)
  • For most people though their home is one of their biggest, if not the biggest, asset that they have. And when you have a home that's paid off, that's a lot of money that you can no longer touch. (02:49)

Quote for the episode: "And depending on mortgage rates at any specific time, the last few decades have shown historically low interest rates, so funds invested outside the home may have the opportunity to grow much more than the interest rate being paid out on the mortgage..." (03:35)

Securities offered through TFS Securities, Inc., and Advisory Services through TFS Advisory Services, an SEC Registered Investment Advisor Member FINRA/SIPC. TFS Securities, Inc., is located at 437 Newman Springs Road, Lincroft, NJ 07738 (732) 758-9300.

Transcript
Voiceover Audio:

Welcome to the Enjoy More 30s Family Finance

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podcast. The only podcast dedicated to making life more

Voiceover Audio:

enjoyable for young families by hitting on the financial topics

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that tend to weigh on us, stress us out, and distract our focus

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from simply enjoying life.

Joseph Okaly:

Hello, and welcome back to the Enjoy More 30s

Joseph Okaly:

Family Finance podcast. Our series this time around is

Joseph Okaly:

called The Financial Parables of Your Life. So each week, I'm

Joseph Okaly:

coming out and talking to you about what may be a story you've

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probably heard before, but maybe a somewhat altered version of

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the story. Because stories are just an easier way to remember

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things that are really important, whether it be

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information about our family or finances. So as always, before I

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begin, please share and like please leave reviews. I'd love

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to reach and help as many young families out there just like you.

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So today please join me for our story, The Two Houses on

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Pleasantville Avenue. Identical twins Johnny and Jimmy Smith had

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just sold their parent's home and received an equal share.

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They were both about to move into identical houses on

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Pleasantville Avenue, having both obtained identical jobs at

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a factory just down the road. Johnny said to his brother,

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"Isn't it fortunate we received just enough to buy our houses?"

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Jimmy replied, "Well, I decided not to buy my home outright."

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"Not buy your home outright? Ha! You must enjoy paying interest

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for no reason. You always were the fool between us." As his

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brother was clearly not looking for much of a discussion on the

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matter, Jimmy simply replied, "You may be right. So we will

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see." Some time passed and the factory was unexpectedly shut

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down. Johnny and Jimmy both lost their jobs. "What are we going

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to do?" shouted Johnny, "we can't buy any food, we can't pay

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our taxes, we're going to have to sell our homes!" Jimmy

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replied, "Well, I'm not going to have to sell for some time since

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I only put a small amount down, I still have plenty leftover to

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buy food and pay my taxes. In fact, the extra that I invested

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has actually done quite well."

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Most people out there make their decisions based upon the things

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that they've learned up to this point in time in their lives.

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Other ways you can make different types of decisions,

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though, would be by learning something new. Now, there's a

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lot to be said about creating a flexible situation financially.

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Paying off your mortgage was taught to us as a positive going

Joseph Okaly:

back to the Great Depression kind of mentality. For most

Joseph Okaly:

people though their home is one of their biggest if not the

Joseph Okaly:

biggest asset that they have. And when you have a home that's

Joseph Okaly:

paid off, that's a lot of money that you can no longer touch.

Joseph Okaly:

Taking out a mortgage, which is obviously not wanted to begin

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with in a situation where somebody tried to pay off their

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house, and it's not even a possibility if you've lost your

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job, or selling the home are the only ways of accessing the money

when the home is paid off:

a mortgage or selling it. That's

when the home is paid off:

it. So there's a lot to be said for then keeping assets outside

when the home is paid off:

of the home. Maybe Jimmy from the story would eventually have

when the home is paid off:

to sell his home but he would not be put into a forced duress

when the home is paid off:

situation like his brother Johnny was. And depending on

when the home is paid off:

mortgage rates at any specific time, the last few decades have

when the home is paid off:

shown historically low interest rates, so funds invested outside

when the home is paid off:

the home may have the opportunity to grow much more

when the home is paid off:

than the interest rate being paid out on the mortgage,

when the home is paid off:

especially if it's a tax deductible interest charge for

when the home is paid off:

your situation. So I'm not saying this will 100% make sense

when the home is paid off:

across the board for everyone but it also never hurts to maybe

when the home is paid off:

learn something new.

when the home is paid off:

So thanks for tuning in today and join us for next week's

when the home is paid off:

story, The Crow and The Pitcher. I hope you enjoyed today's

when the home is paid off:

story. Please remember to review and share for others. And if you

when the home is paid off:

need any help, don't hesitate in reaching out. I probably have

when the home is paid off:

helped someone just like you. Until next week. Thanks for

when the home is paid off:

joining me today and I look forward to connecting with you

when the home is paid off:

again soon.

Voiceover Audio:

The conversations on this show are

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Joe's opinions and provided for general information purposes

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only. They do not constitute accounting, legal, tax, or other

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professional advice for your specific situation. You should

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always seek appropriate advice from a financial advisor,

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accountant, lawyer, or other professional before acting upon

Voiceover Audio:

any content or information found here first. Joe is affiliated

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with New Horizons Wealth Management LLC, a branch office

Voiceover Audio:

of TFS Securities, Inc., and TFS Advisory Services an SEC

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Registered Investment Advisor, Member FINRA/SIPC.

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About the Podcast

Enjoy More 30s: Family Finance
Family Finance for Young Professionals.
Young families receive little to no personal finance help. We all grow up to have jobs and money, yet our education system focuses on Shakespeare and Algebra. Even professional advice can be hard to come by, with the majority of the industry chasing retirees and existing wealth.

Joe Okaly's podcast is aiming to change this, providing personal financial advice geared specifically to professionals with young families. This podcast is dedicated to making life more enjoyable for young families, by hitting on the financial topics that tend to weigh on us, stress us out, and distract our focus from simply enjoying life.

Joseph P Okaly is a CFP Certified Financial Advisor who fits directly in with who this podcast is focused on - a young professional with a family. With over a decade of experience as an advisor, there is passion and knowledge to make a difference.

Securities offered through TFS Securities, Inc., Advisory Services through TFS Advisory Services, a SEC Registered Investment Advisor Member FINRA / SIPC. TFS Securities, Inc. located at 437 Newman Springs Road, Lincroft, NJ 07738 (732) 758-9300.