Episode 075:

Home Equity Fails Liquidity Test

In this episode, I’m going to begin to show you how home equity, paying off your mortgage, fails all four tests of a wise investment. It’s very popular and very comfortable to pay off your mortgage but compared to the alternative way of being debt-free it’s a terrible financial decision. The first test that home equity fails is the Liquidity Test… listen in to hear what I mean.

Included in this episode:

Four Tests of a Wise Investment

“How does it perform as an investment?”

Test 1: Liquidity

  • Liquidity = the ability to access your money when you need it the most
  • Is home equity liquid?
    • The real question is… When is home equity liquid and when is it not liquid?
  • What happens if you lose your job?
  • What happens if you lose your home?
  • Simply put, if you have to ask an insurance company for permission to have your own money, then your money is not liquid

Important links:


Charlie, your host:

CharlieMedium“Charlie Jewett is an Author, Speaker, Podcast Host, Consumer Advocate, and Investment Advisor from San Diego, Ca.  Charlie has spent the last eleven years trying to change the way the industry professionals and consumers think about Retirement.  Charlie provides education materials that help people to create their own financial plans and offers services to protect consumers from the bad guys in the Financial Services Industry.”  


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