Although you might not guess from the title, Douglas Andrew's latest bestseller, Millionaire By Thirty: The Quickest Path to Early Financial Independence, stresses the importance of real estate compared to the risks of the stock market for people dedicated to improving their financial situation. This book, which Mr. Andrew co-authored with his two newly-millionaire sons, Emron & Aaron, aims its stong financial advice at recent college graduates.
Several important ideas are discussed. First, not all debt is bad. Mortgage debt and student loans are desireable within reason. Credit card debt, on the other hand, is to be avoided. Second, once you build equity in your first home, that equity earns a zero rate-of-return. As a result, paying off your mortgage early is seldom the best way to increase your net worth. If you find a better opportunity for this equity (i.e. to finance a vacation home or investment property), you owe it to yourself to put this financial asset to work. This strategy of investing in real estate could work very well given our current real estate market!
You can listen to audio excerpts of this book by visiting www.MissedFortune.com/Millionaire-By-Thirty. Even for those of us over 30, there are compelling action plans.
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