Using home equity can make your richer, believe it or not. Yes, it’s a loan, but it’s the lowest cost loan you can get, thanks to the fact that it’s secured by real estate, your own property.
A home is the main personal asset of most people. The U.S. Census Bureau shows that home equity accounts for over half of the total net worth of couples between the ages of 35 and 54. Median home equity for an American in his or her mid-40s to mid-50s is between $70,000 and $97,000.
If used the right way, home equity can be an excellent financial tool. Let’s take a look at six ways in which you can put using home equity can make you richer in the long run.
Small-cap winners galoreThe big stock market winners share one common attribute: Near the beginning of the ascent of their shares, the companies offer revolutionary products or services, are market leaders in their respective industries, or both. Some big stock market winners that possessed the attributes outlined above are Netflix (NFLX), which we recommended to investors in October 2002; Intuitive Surgical (ISRG), which we bought and recommended in July 2004; Baidu.com (BIDU), which we bought and recommended in August 2006; and MercadoLibre (MELI), which we recommended to investors in October 2010. Get up-to-date small-cap stock picks from David Frazier, editor of Small-Cap Profit Confidential.
Smarter cryptocurrency investmentsThe stock market crash of 2008 was the catalyst for his journey into alternatives. And interestingly, it was the impetus behind the creation of Bitcoin and the blockchain technology behind it. Keene Little wasn’t ready to risk his money yet but he was very curious, so he began charting Bitcoin’s technical patterns. What finally convinced him to dip a toe into digital currencies was seeing that they followed familiar price patterns that could be analyzed and successfully acted on. Now he shares those insights with subscribers to the Crypto Wealth Protocol.