Mortgage Killer Accelerator

Strategy 86 of 107 · new for the five-year plan

Get paid to grow and keep forest carbon

Depends on markets or variable ratesFrom new cash flow, not your paycheckFive-year size: helps at the margin

What it is

Forest owners with enough acres can enroll in a carbon program that pays each year for practices that store more carbon.

Steps

  1. Forest owners with enough acres can enroll in a carbon program that pays each year for practices that store more carbon.
  2. Read the contract term and the harvest limits.
  3. Send the payments to principal.

Repeat: Yearly, for the contract term.

Measure: Yearly payment.

Try it in the calculator Enter its amount in "Yearly amount to principal". Add a payoff goal of 5 years to see what is still needed.

Risks

  • Limits timber harvests for years.
  • Payments depend on programs and buyers.

Who it fits

Grandmas and grandpas (62 and over), Married couples, Higher net worth, with assets

Needs

Owns acreage or a large lot

How predictable

Depends on markets or variable rates

A worked example (hypothetical, not guaranteed)

Picture a hypothetical household (grandmas and grandpas (62 and over)). They owe $300,000 at 6.5% with 30 years left. The required payment is $1,896 a month, and that payment, which comes from income, never changes in this example.

They follow the steps: forest owners with enough acres can enroll in a carbon program that pays each year for practices that store more carbon.

Suppose it brings $1,500 once a year on principal. The loan would be paid off in 25 years 4 months instead of 30 years, saving about $70,138 in interest. To finish in five years, they would still need about $3,852 a month more from other strategies. That is why the five-year sequences stack several at once.

The amount above is chosen only to show the arithmetic. It is not an estimate of what this strategy will produce for anyone. Put real numbers from the fact finder into the calculator.

Sources and more information

Where to get help

Related strategies

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