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Investing Books / The Millionaire Mind


Subject:  Re: Ordinary People...Extraordinary Wealth Date:  3/3/2001  3:40 PM
Author:  telegraph Number:  55 of 220

“Reverse mortgages typically allow owners and their spouses to remain in the home until death until they decide to move from the home. When the home is vacated…the mortgage and accumulated interest must be repaid, usually by the sale of the home or by a relative that inherits the home.”

Heirs inherit your estate. The estate will be responsible for handling any unfinished financial matters"

The estate pays debts from the estate. If the people die owing money, or live to the last day of the reverse mortgage, and die, and the house is worth less than the amount owed the bank, and there are no other assets, guess what...the bank loses. The heirs are not responsible for the estates debts. They don't have to cough up money.


You also confuse Stanley's statistics.

Bear in mind that the average value, repeat average value, of ALL the millionaire homes in his study, was $277,000. To assert that a large percent have a $300,000 mortgage is ludicrous. Impossible.

Those folks who have a $300,000 mortgage own a 1.4 million dollar house and typically HAVE A NET WORTH OF OVER 20 million dollars. That is not your typical or average by his statistics.

Only 21% of his study group had a mortgage balance of $300,000.

If you read his book, you will learn the average millionaire realizes 3.3% of his net worth as income, to live on. If that is the case, I find it incredbile to hear you assert they are making payments on $300,000 houses (payments of how many thousands a month) when the average net worth of his study group is about 2.938 million, meaning they are living on $110,000 a year.

You will also find he suggests most millionaires do not buy houses that cost more than twice their annual income.

Which ties in nicely to his statistic that they get $110,000 a year income, and live in house now worth $277,000.

Your interpretation of Stanley (I assume you have copies to read, and are not just taking pieces from here and there?) is astounding.

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