KEEP YOUR HEART AND SPIRIT IN THE GAME. REWARDING GAINS, OR WINS, CAN TAKE SOME TIME. WE HAVE ONE FOR YOU NOW. IT’S SPIRIT UP TIME. MOMENTUM MATTERS. SO WHILE WE BUFFER AMID HEADWINDS, GRAB A SWEET CLEAN CLEAR WIN NOW, ONE ALL YOUR OWN. HERE’S HOW.
A Blue Bird day on the high sunny slopes of Copper can turn flat or dark without warning. Remind you of anything? Markets are like meadows full of wild flowers until they’re not. They’re not. Welcome to the future. We think climbing from here will be “technical.”
What are we saying? The long smooth blacktop is over for a while. Whole sectors will not surge. Far fewer companies will be rewarded by shareholders. Good quarters will pass with no love, and no price jump. Prices will creep, melt, ease, when rising. When descending they will drop like empties.
Our loved And Long Bull Is Taking A Powder. We Will Be Moving In Slower More Finicky Currents. No. Check The Price Action Of All The Big Banks, After Reporting Earnings. Shareholders Shrugged. Whatever.
Investors are like athletes, artists. Or perhaps it’s everyone. We work very hard and the going routinely gets rough. Thus, encouragement is good. Who doesn’t need some recognition for honest diligent work?
Harder markets make wins, harder, and fewer. Crazy is the belief that adults don’t become discouraged. We all do. At STOCKjAW we depend on it. We’ve been there. But nuts and bolts help is at hand. Really. Here it is.
Mortgages provide both a means to a home, and fantastic opportunity. You can profit from stock shares but you can’t live in them. You can live in a house, but its’ worth, and weight, fluctuate while the price remains the same. The bank doesn’t give mortgage breaks to borrowers when prices fall, even when ordered to by the feds. They’re fun that way.
Wins for investors come in multiple forms. Paying yourself first is a win, all day long. Increasing your mortgage punching power is a win, all day long, and that’s how often they compound you mortgage interest. Every single day the bank compounds the interest you must pay them. That’s not good for you. You can work with that. Here’s how.
Most mortgages allow principal only payments. Such payments completely dodge interest. Principal only payments are a compound win.
Principal only payments reduce your mortgage balance dollar for dollar. The price you pay is one-to-one. However the value returned is huge.
At year’s end all mortgage holders receive their annual summary. A quick look reveals the precise interest/principal paid breakdown. That’s the interest schedule. The monthly shift from interest to principal is glacial. You can change that schedule. Principal only payments escape the interest schedule, thus returning in value that interest.
One of our team members is doing just this. Her amortization schedule breaks down at 60% principal and 40% interest. Thus 40% or every dollar paid is wasted. Dollar minds register that as half, not 40%. Rip your dollar in half and ask yourself if you’re satisfied. So here’s her math.
Skipping interest is great. It should be done. Yet how you use this tool matters. Do the above in addition to contributing to investments–maybe substitute a bit if you like. Remain liquid. Enjoy. By the way-
Principal only payments also reduce the base upon which the bank compounds your interest. The entire curve shortens, and after all, it’s time you’re paying for.