I’d like to share a conversation that began while I was developing my practice as a financial advisor in the early 90s. I found during a period of 1990-1992, as lower interest rates moved us into our first trillion-dollar mortgage market, that the consumers we worked with had a lot of questions about how they should manage their cash and cash flow relative to their liabilities (borrowing).
Their questions seemed simple enough - “Should I refinance from a 30 year to a 15-year mortgage? Should I pay off my debt now or should I save more? Should I take money out of my house to fund college education expenses?” “Should I pay cash for my house?” “Should I do a bi-weekly mortgage?”