What Direction Does Your Cash Flow?

Here is a very common question I get as an advisor, “Should I pay off my mortgage?” This is a difficult question to answer for two reasons: Most of the people asking have already come to their own conclusion, and they’d be hard-pressed to be convinced otherwise. They are looking for confirmation rather than insight. The answer to this question depends on the particulars of one’s situation, this is not a quick and easy, black and white, yes or no answer. Some significant discussion and financial planning needs to come first. Which makes this the perfect question to address on TOM. In today’s podcast, I’d encourage you to pay close attention to the step by step process for how we come to a conclusion. The greatest lesson from our discussion will not be the actual conclusion, but rather the thought process leading up to it. Learning to be a better “financial thinker” and how to better construct an assessment for these types of questions are the primary goals.