Conventional wisdom would have us believe that when we save for some future event (a child’s college education, a wedding, a major home renovation), we should take the money we saved and use it to fund that event.
So the thousands of dollars that had been earning interest are spent, the monthly interest income plummets, and it’s time to start saving again.
In the 21st century, the volatility in interest rates makes the “starting over” in savings a depressing, potentially futile reality.
Instead of draining your savings to fund a major life expense, take control of your liquid assets and leverage them, instead of spending them.
Howard’s philosophy suggests:
- Instead of pouring money into your house (via a shorter-term mortgage or making extra payments), keep it accessible by saving it.
- Instead of funding traditional savings vehicles that must be spent for a specific purpose (a 529 college savings plan, for example), keep it accessible — and available for another purpose without penalty — by saving it another way.
- Instead of avoiding a whole life insurance policy, consider the benefit that comes from knowing the value of that policy is assured — no matter what happens to interest rates or tax brackets.
Take the uncertainty out of your saving strategy. Call Howard Silvermintz to see how this philosophy can let you fund your child’s education without emptying your savings to do it.