Mortgage Calculator

Mortgage brokers may try to sell you the loan that makes them the most money, not the loan that makes you the most money.

Freakonomics made me think about my business and all the people that I interact with on a daily basis from clients to home offices. Economics is a funny thing in that not a lot of people understand it. It is especially alarming to me that the financial advisors and planning industry is terribly misinforming the general public about what they should be doing financially. Most financial planners, much like stock brokers, real estate agents, life insurance agents, mortgage brokers and countless other “professionals” are misleading their clients in ways that are seriously detrimental to their financial health. There is so much garbage out there that is flat out wrong that it is no wonder there is so much consumer debt and lack of education out there. Unfortunately there just isn’t time right now to dispel some of the myths of traditional financial planning, but I will begin to illustrate, from an economic point of view, so of the fallacies that are hurting the American public. Some of the problems that I have in mind are taxable compound interest, “Buy Term and Invest the Difference”, Credit Card Debt, Term and Permanent Insurance, Dollar Cost Averaging, 15 year Mortgage’s just to name a few.

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