Next case
Menu
The Bottom Line (Year
30)Your
total
net wealth after 30 years — home equity plus investment portfolio value.
SCENARIO 1:
NET WEALTH
$5,944,580
Home equityThe portion of your home's value that you own
outright
— home value minus remaining mortgage balance.
$750,000
Invested (liquid)The value of
your
investment portfolio — money you can access without selling your
home.
$5,194,580
SCENARIO 2:
NET WEALTH
$7,690,467
Home equityThe portion of your home's value that you own
outright
— home value minus remaining mortgage balance.
$750,000
Invested (liquid)The value of
your
investment portfolio — money you can access without selling your
home.
$6,940,467
Monthly Cash Flow ComparisonHow your monthly spending breaks
down in each scenario. Both scenarios spend the same total amount each month.
Both scenarios cost the same each month
Scenario 1: Max Down
Mortgage P&IPrincipal & Interest
— the main monthly mortgage payment that goes toward paying down your loan
and its interest.$1,264
Property TaxMonthly property tax
— calculated from the annual rate divided by 12.$750
Insurance$100
Maintenance$625
Housing SubtotalTotal monthly housing costs — mortgage, taxes,
insurance, and maintenance combined.$2,739
Invested$2,528
Total$5,267
Scenario 2: Invest the Difference
Mortgage P&IPrincipal & Interest
— the main monthly mortgage payment that goes toward paying down your loan
and its interest.$3,792
Property TaxMonthly property tax
— calculated from the annual rate divided by 12.$750
Insurance$100
Maintenance$625
Housing SubtotalTotal monthly housing costs — mortgage, taxes,
insurance, and maintenance combined.$5,267
Invested$0
Total$5,267
📋 How It Works
Both scenarios invest! Scenario 1 has less upfront to invest but $2,528/month
available.
Scenario 2 starts with $400,000 to invest but only $0/month
available.
Net Wealth Over Time
Total assets (home equity + portfolio)
Liquidity Over Time
Cash you can access without selling your home
Why This Matters: Scenario 1 has $0 liquidity (all wealth is trapped in
home equity).
Scenario 2 gives you accessible cash for emergencies, opportunities, or early retirement.
Wealth Composition (Year 30)
How your wealth breaks down
| Year | S1 Loan | S1 Invested | S1 Net Wealth | S2 Loan | S2 Invested | S2 Net Wealth | S2 Advantage |
|---|
Save This Scenario
Get a clean breakdown of your numbers in your inbox — yours to revisit, share, or send to a partner.
✓ Sent! Check your inbox in the next minute or two.
Couldn't send right now — please try again in a moment.