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The Refined Mortgage Lending Company & Home Loan Lenders

2021 savings

Apache is functioning normally

November 12, 2023 by Brett Tams

Lender Credit, HELOC, PPE, AI Tools; Wholesale and Correspondent News; Millennial Refi Interview

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Lender Credit, HELOC, PPE, AI Tools; Wholesale and Correspondent News; Millennial Refi Interview

By:
Rob Chrisman

Fri, Nov 10 2023, 11:47 AM

My cat Myrtle is enthralled with Artificial Intelligence (AI). Okay, I made that up. She’s only interested to the extent that it impacts the supply of Icelandic Sea Trout into her bowl. AI is a hot topic these days, and in fact today’s Mortgage Collaborative’s “Rundown” at noon PT, 3PM ET, features David Karandish, the CEO of Capacity, discussing that and other trends in mortgage tech. A trend continuing to rifle through the ranks is mergers and/or acquisitions as a handful of well-known residential lending companies crisscross the country in search of small institutions that fit their business models and are ready for a change. Sometimes discretion is the better part of valor in terms of staying in business: Unfortunately, yet another trend is a lack of profitability, especially among small and mid-sized lenders who have gone through their 2020/2021 savings and sold their servicing. Lastly, volume trends aren’t good either: According to Curinos, October 2023 funded mortgage volume decreased 19 percent YoY and 5 percent MoM. (Curinos sources a statistically significant data set directly from lenders to produce these benchmark figures. We drill into this data further here.) Today’s podcast can be found here, and this week is sponsored by nCino makers of the nCino Mortgage Suite. With three products tailored to the needs of the modern mortgage lender, nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics unite the people, systems, and stages of the mortgage process. Hear an interview with Millennial homebuyer Megan Sinclair on her lender choices behind her third time financing a residence.

Lender and Broker Software, Products, and Services

They’re back! Foreclosures are fast approaching their previous levels. Today’s market has changed significantly and doesn’t favor struggling homeowners. With trending interest rates well above those experienced over the past several years, relief for borrowers facing default will be significantly strained. Before thinking foreclosures are not an immediate concern, read Clarifire’s recent blog, “Foreclosures are Back!” to understand what’s happening, why this environment is different, and what servicers can do to stave off disruption. It’s time to experience the capabilities needed to manage borrower impact and your cost to service with CLARIFIRE®, truly BRIGHTER AUTOMATION®, delivering a better approach, better results, and better software, today!

Are you ready to take your lending operations to the next level? Join the live event on November 16th @ 2pm EST where we unravel the secrets to optimizing your processes, systems, and resources to achieve unparalleled productivity and cost-effectiveness. You’ll even learn how to save up 80 percent on several of your operations costs through specific automation and optimization strategies. Join industry leaders Taylor Stork, CMB of Developer’s Mortgage, Josh Friend, CEO of Insellerate, and Kirill Klokov, CEO of TRUV. They are ready to share proven strategies to ensure your operations and borrower interactions are optimized for success. Join now!

What’s better than the holidays? Never answering the same question twice. Give yourself (and your team) the gift of Capacity, so in 2024 you can spend less time struggling through the origination process and more time closing loans. Support internal teams, current borrowers, and prospects with secure integrations to over 150 systems, including Encompass and Total Expert. Capacity is designed to streamline lending as your personal assistant. On your behalf, it can read GSE guidelines, retrieve loan information, and assist current and prospective borrowers. Turn a costly, repetitive process into an affordable, scalable one. All you have to do? Ask Capacity. Don’t know where to start? Whether you’re an AI newbie or ready to join the mortgage AI revolution, we’re here to help. Reach out today to ask us about our AI Assessments, or book a demo.

In this market, hustle is everything. You can’t afford to waste a single deal, or a single minute. That’s why ReadyPrice has launched Shop, Lock, Deliver, an innovative platform designed to help independent mortgage brokers and their lenders save time and money. Now you can shop competitive loan offerings from multiple lenders, get rate lock guarantees in real time, receive underwriting findings, and deliver the borrower’s complete loan file to lenders, all on a single platform, at no cost to brokers. It’s already helping brokers around the country thrive and compete in the toughest market. Multiple lenders. One platform. Zero b.s. Come check us out today.

TPO Products for Brokers and Correspondents

Loan officers! You’ve likely heard that The Loan Store pays a whopping 200 bps per HELOC…but do you know HOW to sell a HELOC? You’re in luck: TLS is hosting the second of its 7-part HELOC Mastermind Series next week. This series features Loan Officers sharing their tips/experiences on how they’re using HELOCs to stay in front of clients and generate additional income. Next live event is Thursday, Nov. 16 at 1 p.m. EST. Register here to attend!

Do you need new affordable mortgage solutions in the communities you serve? Rocket Pro TPO’s Purchase Plus program offers first-time homebuyers in many low-income communities $5,250 in lender credits to use toward down payments and closing costs. The program is available in six metro areas: Atlanta, Baltimore, Chicago, Detroit, Memphis, and Philadelphia. Additionally, the introduction of ONE+ by Rocket Mortgage provides an incredible opportunity for Rocket Pro TPO partners and real estate professionals. With this product, eligible clients provide 1 percent toward the down payment and the other 2 percent down payment requirement is covered… Plus clients are not responsible for paying the mortgage insurance! Interested in learning more about a Broker or Non-Delegated Correspondent partnership? Contact Rocket Pro TPO to learn more.

Wholesaler and Correspondent News

As a quick aside, in news for any originator, Down Payment Resource is highlighting 61 down payment assistance (DPA) programs offering up to $120,000 in funds for Veterans and service members. In addition to these programs, Veterans and service members are also eligible for the other 2,256 DPA programs available nationwide.

Overall, the big are getting bigger, often at the expense of smaller companies. Inside Mortgage Finance reports that the top 25 mortgage producers in the second quarter generated $231.95 billion, a 33.2 percent sequential increase. In the second quarter “United Wholesale Mortgage reclaimed the top ranking, which it had lost by a narrow margin to PennyMac in the first quarter, with $31.85 billion in second-quarter production.” In terms of purchase biz, AmeriHome Mortgage and Guaranteed Rate were both up more than 50 percent from the first quarter. Chase nearly doubled its purchase-loan originations after assimilating First Republic Bank into its operations.

Reports show that Cenlar FSB, and Dovenmuehle ruled the roost in terms of subservicing, with $860 billion and $508 billion, respectively.

United Wholesale Mortgage came out with its third quarter results: Revenue of $677.1 million, with originations of $29.72 billion. (The 4th quarter production estimates run from $19-26 billion, which would put 2023 production at $103 to $110 billion range.)

Nations Direct Mortgage has just lowered its NonQM 2nd underwriting fee from $1499 to $995! In addition, Nations Direct Mortgage is pleased to announce their Veterans Special for the month of November! Honoring those who served with a $500 credit at closing on all VA loans submitted in November.

With Amendment No. 7 to DR-4724, issued on 10/13/2023, FEMA provided an Incident Period End Date of 9/30/2023, for a Hawaii county affected by wildfires and high winds from 8/8/2023 to 9/30/2023. See AmeriHome Mortgage announcement 20231006-CL for inspection requirements.

As part of its commitment to maintain the highest quality and security of its client’s data, Pennymac will begin to use Multi-Factor Authentication (MFA) technology to log into the P3 portal. In the coming days, all P3 users will receive an email to complete the pre-registration process. View the Pennymac Announcement 23-71 to review.

United Wholesale Mortgage, (UWM) announced eligibility expansion for its Investor Flex DSCR loan program by allowing borrowers to close in a Limited Liability Company (LLC). “This enhancement allows borrowers looking to expand their real estate portfolios an additional option to separate their personal properties and their investment properties while benefiting from the faster, cheaper, and easier experience of the wholesale channel. Investor Flex allows borrowers to qualify for investment properties based on perspective monthly rental income of the subject property rather than their current income. Investor Flex was later expanded in July 2023 with four additional DSCR loan options. Additional details on the Investor Flex program can be found here.”

Angel Oak Mortgage Solutions shared an innovative solution that could change the way you help your clients achieve homeownership dreams. Angel Oak non-QM Bank Statement Mortgage, tailored specifically for self-employed individuals and business owners, is now accepting Profit and Loss (P&L) statements as a valid form of income verification.

Capital Markets

Why do markets still seem to underestimate the Fed’s resolve? U.S. Federal Reserve Chair Jerome Powell said yesterday in prepared remarks that the central bank will continue to move carefully but won’t hesitate to tighten policy further to finish off inflation. Fed Governor Bowman said that she would support another rate hike in the event of stalling progress on inflation, and Atlanta Fed President Bostic said that the road to 2 percent will still include some “bumps along the way.” Conversely, Richmond Fed President Barkin said that in aggregate, we are still not seeing the full effects of policy.

Even with policymakers trying to cool expectations for rate cuts as the market underestimates their resolve on inflation, Fed funds futures are currently pricing in a less than 10 percent chance of a rate hike in December, and nearly a 20 percent chance of a rate cut at the March meeting. And that is with bond markets seemingly in a “sell any rally” position. Before Fed Chair Powell expressed doubts that policy rates were “sufficiently restrictive,” Treasury yields spiked after an auction of $24 billion in 30-year bonds met much weaker demand than sales of 3-year and 10-year notes over the past two days

On the housing front, NAR reported that single-family existing-home sales prices rose in 82 percent of measured metro areas (182 of 221 areas across the nation) in the third quarter, up from 58 percent in the previous quarter. The national median single-family existing-home price grew 2.2 percent from one year ago to $406,900, while the monthly mortgage payment on a typical, existing single-family home with a 20 percent down payment was up 19.2 percent from a year ago to $2,192. Twenty-five markets, or 11 percent of all markets, experienced double-digit annual price appreciation (up from 5 percent in the prior quarter).

Today’s economic calendar begins later this morning with preliminary November Michigan sentiment where inflation expectations will be closely scrutinized. Two Fed speakers are currently scheduled: Dallas President Logan and Atlanta President Bostic. We begin Friday with Agency MBS prices worse a few ticks (32nds) from Thursday’s close and the 10-year yielding 4.64 after closing yesterday at 4.63 percent.

Employment, Companies Wanted, and Transitions

Kind Lending is seeking a candidate for the position of Director of Non-QM. As Director, you will be responsible for spearheading the growth of our non-QM division. The ideal candidate will have a deep understanding of non-QM lending, and a proven track record of success in the industry. In this role, you will be responsible for program pricing for multiple channels, loan sales, trading, and hedging, overseeing analytics and pricing engines, as well as margin management and reporting for non-QM production. “At Kind Lending, we pride ourselves on providing our partners and customers with the best possible mortgage lending experience. As the Director of Non-QM, you will play a key role in achieving this goal. If you are a motivated and experienced professional looking for a new opportunity, we encourage you to apply today: Click here to learn more about this opportunity!

“Independent Mortgage Banker owners: If you are uncertain how you will survive this winter if rates remain higher, please call me direct to discuss a win-win opportunity. Equity Resources, Inc. is an established mortgage banking company that has been successfully in business for 30 years. We are privately owned and continue to look at growth opportunities. We offer a full marketing team and a media production team to provide best-in-class support to our loan officers and partners. Our history and culture are exceptionally important so let’s have a conversation to see if we may be a fit. We are large enough to offer exceptionally sharp pricing and products, yet we have a boutique feel where you may talk to the owner of the company at any time. We have a successful history of incorporating other companies into our model. Please contact Tom Piecenski, EVP of Sales.”

Mortgage Machine Services, an industry leader in digital origination technology to residential mortgage lenders, announced that Crystal Stanton will manage customer success and onboarding. “Crystal will onboard new Mortgage Machine customers, leveraging a success-centric approach with a commitment to white glove service to ensure a smooth experience and productive outcome.”

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Source: mortgagenewsdaily.com

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Apache is functioning normally

May 25, 2023 by Brett Tams
Table of Contents
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I started the Best Interest on December 16, 2018. It’s been two years! And this also marks two years since I’ve been tracking every single expense in my budget. E-v-e-r-y-t-h-i-n-g. Today’s post will be a year-in-review for both the blog and for my personal finances. There will be lots of fun numbers. And I’ll show you how my preaching works in practice.

To get your bearings, here’s the Year 1 Review.

Thank you!

Thank you. Yes, you. Thank you for reading, and thank you to my generous patrons.

I don’t write here because of financial gain (see the Sankey diagram in the Budgeting section). I write here because you’re reading. And because it’s incredibly fun and you readers make it rewarding.

I was recently asked about my mission statement. It’s just in draft, but:

I value helping and teaching. At my core, I want to help people improve their lives by teaching them valuable skills & knowledge. I think personal finance is a tangible, vital, and universal skill set.

Improving personal finance == improving lives. 

Sharing with you is my mission. And you sharing your attention with me is a privilege that I don’t take for granted.

Every small compliment you’ve given me is extremely meaningful. I love answering your questions, your Tweets, and your Reddit comments. So again, thank you for being here.

Some Stats

Who doesn’t like statistics? Here’s what 2020 looked like on the Best Interest.

Back in 2019, about 19,000 people visited the blog. I was ecstatic.

In 2020, over 160,000 readers visited. I’m over the moon. In 2021, I’d like to hit 500,000.

Early 2019–nobody here. Recent months–25K+ readers per month. Thank YOU!

As of this publication, about 210,000 words over 82 articles have been published in 2020. About 70% of those are my own, and the other 30% I can attribute to the wonderful bloggers I work with at the Money Mix.

The Money Mix is a group of like-minded writers, bloggers, and internet nerds. We share lessons learned, tips & tricks, and even share one another’s best written work. I’ve learned a ton since joining in April and attribute much of the Best Interest’s growth to learning from TMM.

The blog’s subscriber base grew by about 400% this year. If you haven’t joined, I send out a quick newsletter every week and include all new Best Interest articles.

Never miss another Best Interest post—subscribe here.

And lastly, the blog cost ~$2800 to operate and improve (notice the sweet logo?!), plus the hundreds of hours of writing and site maintenance. The mission makes it worthwhile. But if you’d like to support the cause, please join the patronage. I truly appreciate it. The more this site pays for itself, the more time I can devote to the mission.

Budgeting

Another year, another streak of tracking every single dollar using YNAB. If you’re looking for a smart Christmas present, YNAB is a great idea.

Note: you and I both get a free month of YNAB if you end up signing yourself (or someone else) up with the link above. No extra cost to anyone involved. You get a 34-day trial, and then an additional free month. That’s two months to figure out if you like it!

Below, you can see a snapshot of my YNAB journey from November 2018 until now. During this 2+ year period, I’ve used YNAB to budget and track every dollar that I earn and spend.

My YNAB journey from November ’18 until now. Debt in RED, Assets in BLUE.

Is it overkill? Yes, tracking every dollar is overkill for most people. But I highly recommend that you run a budget, and I even interviewed some other experts for alternative budgeting ideas. Find the right budget for you.

Where the Money Goes

As for where my money actually goes, the Sankey diagram below is a terrific visualization.

Sankey Diagram of my 2020 Income Flow

I’ve normalized this diagram against 100% of my salary. Why? Because it helps visualize what percentage of my income goes where.

For example, 23.4% of my income went to taxes before I ever saw it. Only 59.42% of my income ever came to my bank account via paychecks and, therefore, was budgeted. Of that 59.4%, I spent about half and saved/invested the other half.

The bottom of the Sankey diagram shows how previous years’ investments grew, and shows the free money that comes from my employer’s 401(k) matching. If the stock market had gone down, the “Investment Interest” section could have been negative.

But as it sits, 2020 stock market returns added the equivalent of 25.44% of my salary to my portfolio. And my employer’s 401(k) match was equivalent to 6% of my salary (that’s free money, by the way). The Investments section below has more detail on those individual investments.

Between budgeted savings (Roth IRA, taxable brokerage account, emergency fund) and pre-tax savings (401k, HSA), about 45% of my salary went towards savings and investments. Add in the “extra” savings (investment returns, 401k match), and the equivalent of 76% of my salary went towards savings and investments.

Your results may vary. But this is how my preaching looks in practice.


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Investing

After plenty of questioning, I wrote an article in October that provided every detail of how I invest.

One of the nice things—for both you and I—is that it’s fairly easy to track my portfolio over time. There are four assets:

  • Large U.S. stock index fund (ex: Fidelity’s S&P 500 index fund, FXIAX)
  • Mid and small U.S. stock index fund (ex: Fidelity’s Russell 2000 index fund, FSSNX)
  • Bond index fund (ex: Fidelity’s Total Bond Fund, FTBFX)
  • International stocks fund (ex: Fidelity’s Total International Stock Fund, FTIHX)

As of 12/16/20, these assets have performed as follows in 2020:

  • S&P 500 Index = +13.3%
  • Russell 2000 Index = +17.6%
  • Bond Index = +3.6%
  • International Stock Index = +6.2%

For the 2019 year, these indices’ performances were:

  • S&P 500 Index = +28.9%
  • Russell 2000 Index = +23.72%
  • Bond Index = +9.9%
  • International Stock Index = +21.5%

What are the takeaways? 2019 performance was blistering, and 2020 performance feels oddly optimistic given current events. I don’t expect every year to be as “good” as the past two.

Nevertheless, I’m trying to leave my emotion at the door and stick with my plan. Specifically, I invest the same dollar amount every month, whether the market is up or down. If you want to learn why I’m confident in that plan (despite current events), I wrote all about it this past autumn:

Even if the markets are at all-time highs and it feels like a crash is coming, my outlook is long-term. I have faith the the long-term (10, 20, 30+ years) economic outlook is good.

Favorite Blogs Posts

I’m proud that my writing is highly regarded. I was featured this year on MSN, Grow/CNBC, the Ladders, the Good Men Project, SoFi, Budgets are $exy, the Plutus Awards Showcase, and elsewhere. Woohoo!

If you think my writing is worthy of someone else’s attention, I’d love for you to share it with them. Post a link on Facebook, Reddit, Twitter, etc. Send your Uncle Dave the article I wrote about him. If you found a post particularly useful, let your tribe know about it. Simple grassroots sharing.

Here are some of the best posts from 2020:

January—The 2010’s Will Happen Again—If you’re worried that the 2010’s were a “once in a lifetime” investing decade, this article will show you how that’s not quite true.

February—Index Fund Bubble: Arguments For and Against—I invest solely in index funds. So when well-known investors warned of a bubble, I wanted to understand for myself.

March—Viral Stock Market Strategies—Lots of Twitter experts discussed their personal investing techniques during the early days of COVID-19. So I wrote a MATLAB script to back-test all their best laid plans. Spoiler—the simplest approaches always fare best.

April—The Biggest Lesson from COVID-19—Slack. Safety net. Margin. Out of the many lessons from COVID-19, this article discusses the biggest one: how building slack in our systems—personal finance, business, hospitals, even hiking—is a life-and-death issue.

May—Jeff Bezos and the Meritocracy Kings—Jeff Bezos, resource allocation, Vonnegut, meritocracy, survivorship bias, systemic flaws, and quarantine kings.

June—Simple Financial Goals—a two-minute punch-list to start you down the path to better personal finances.

July—Do you know Dave?—a funny story about a man you know, and the perilous personal finance circumstances he finds himself in.

August—Long Term Investing Takes Faith—I returned from a camping trip rejuvenated. But memories of the rolling waves reminded me of slow, steady, long-term investing.

September—Amazing People Everywhere—inspired by Tim Ferriss’s Tools of Titans, I interviewed some amazing people in my own life, and asked them what lessons they’ve learned in their unique journeys.

October—The True Cost of Car Ownership—a detailed analysis of car costs, answering the important questions like:

  • How should I compare time owned vs. miles driven?
  • What’s the full-life true cost of owning a car?
  • How much does a car’s value depreciate over time?
  • How do I place value on the utility of my car (e.g. a work truck vs. a compact sedan)?
  • When is a used car purchase smarter than a new car?
  • How does leasing compare to owning?
  • Should I sink more money into an old beater? Or just get a new car?

November—Your Retirement Savings Goal for 2021—my first dabble into coding my own calculators. If you’re looking for an easy 2021 resolution, start by calculating your 2021 savings goal.

December—Curses, Miracles, and the Best Interest Student Loan Solution—The status quo is a haunting curse. The proposed solution is a divine miracle. I propose a middle-ground solution. And the math backs me up.

2020: Year of the Dog

We fostered nine sweet dogs in 2020. No dog goals for 2021, other than to keep fostering. There are lots of great dogs that just need a home. If you’re looking for a dog, consider adopting through a shelter or foster organization.

But because it’s fun and funny, here are the 2020 dog power rankings.

  • Starting at #9: Josie. She was one of Sadie’s puppies. And man, was she mean. Clearly, Josie learned that the meanest puppy always gets fed, and she would absolutely torment poor Oscar. If you’ve ever seen Tasmanian devils fighting on the National Geographic channel, that’s how Josie was at feeding time. Bad girl! But she’s a sweetheart now as a young adult 🙂
  • Next at #8, Ranger. While Ranger was a good boy, he chewed on too many things. Most dogs are athletes. Not Ranger. He was a happy, dopey, skittish, and unathletic dog.
  • Louis a.k.a. Mr. Bones a.k.a. Louie Long Legs comes in at #7. Not the cutest pup, and one of the only dogs that legitimately drew blood from his playful bites and claws. But he was just a pup, so you can’t hold it against him!
  • Jules is our current foster, and she comes in at #6. She’s a little whiny and took a poop behind the Christmas tree. Is she super cute? Sure. But a cute face only gets you so far on the Best Interest.
  • #5 is Raven, a solid puppy. The most athletic of Sadie’s puppies, there was nothing to dislike about Raven. If she has stayed around longer, she could have competed for the top 3. But she got adopted quickly and didn’t have much time to rise to the top of the heap.
  • Esther—coming in at #4—was one of two recent moms to come through our home. And poor Esther definitely missed her puppies, making multiple escape attempts over our fence. She was a sweetie. Not much is cuter than hearing a 25-pound part-Huskie give out a “big” wolf howl.
  • Sadie’s third-and-final puppy, Oscar, comes in at #3. This little guy was everyone’s favorite of Sadie’s three puppies. While we figured, “Ahh. Dad must have been a Blue Heeler,” we actually found out that Sadie is 55% Blue Heeler. Her recessive traits are expressed in her more slender physique and black color. Oscar’s phenotype, however, is very much the stocky, mottled grey Blue Heeler.
  • Scooby, the cutest bloodhound puppy around, is #2. Not only did Scooby have stellar looks, but he had the personality to match. He was playful, mostly potty-trained, and slept through the night from Day 1. He was wise beyond his weeks. The “Doobie Brother” was a very good boy.
  • Coming in at numero uno, it’s got to be Sadie. I’m a big softie for Sadie. She was our first foster and probably the only one who arrived at our door significantly unhealthy. She had been homeless in Houston, scrounging for nutrition to support herself and her three puppies (Josie, Raven, and Oscar). Sadie was only 27 pounds when she showed up. But we nourished her, fell for her, and adopted her ourselves! She’s now a sturdy 42 pounds and has been a great friend to all the other fosters to come through our house. She’s also kinda famous in the blogging world.

2021 and Beyond

In 2021, I’d love to help half-a-million (or more!) readers.

Monetization of the blog is something I’ve considered before. Right now, a few generous Patrons donate to the blog, and I don’t run ads (here’s why). But if the income from running ads allowed me to further the blog’s mission without interfering with that mission…would that be worthwhile? I’m interested in what you think about that idea. Do ads bother you?

Content-wise, I’m always looking for useful questions to answer. My own confusion inspired my Explaining the “Big Short” post. The many new parents in my life inspired this guide to 529 plans. If you want to learn something, let me know.

I’m excited for 2021! And I hope you are too.

Thank you for reading! If you enjoyed this article, join 6000+ subscribers who read my 2-minute weekly email, where I send you links to the smartest financial content I find online every week.

-Jesse

Want to learn more about The Best Interest’s back story? Read here.

If you prefer to listen, check out The Best Interest Podcast.

Source: bestinterest.blog

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The Future is Now: What Years Will Your 2021 Savings Pay For?

February 13, 2023 by Brett Tams

My 2021 savings will pay for my lifestyle in 2040, 2059, and 2078 (if I’m lucky). And your 2021 savings will pay for your entire lifestyle in future years. This article will show you the math.

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