Recently, we met with a 50 year old doctor who, like many other doctors, desired to “get out of debt as soon as possible.” He’d recently built a new professional office building, with the substantial mortgage debt financed using a 20-year loan at a 5% interest rate. In order to get out debt faster, he was prepaying the mortgage by $3,000 a month.
Given his 40% combined federal and state marginal income tax bracket, I recommended that…
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