Every high-net-worth family we work with hits the same question eventually: pay cash for the big purchase, or finance it? The house, the second home, the business outlay. For fifteen years the answer was easy—money was nearly free, so you financed and kept your cash working.
That math flipped. With the Fed holding rates at 3.5%–3.75% and cash finally paying a real yield, financing isn’t automatic anymore—and neither is paying cash.
Here’s what we’d tell any client: the interest rate is only half the decision. The other half is what your cash could earn if you kept it invested, whether the interest is deductible, and what the debt is secured against. Sometimes financing at 7% while your capital stays invested is the smarter move. Sometimes the peace of mind of owning it outright wins—and that counts too.
We don’t guess at that. We run the numbers—your liquidity, your tax picture, your portfolio’s expected return—and let the data make the call. That’s the point of a systematic process: it doesn’t get seduced by a low rate or spooked by a high one.
If you’ve got a big purchase or a refinance on the horizon, this is exactly the kind of decision worth an hour before you sign anything. Give us a call.
For informational and educational purposes only. Not investment, tax, or legal advice. Lake Hills Wealth Management is an SEC-registered investment advisor. Registration with the SEC does not imply a certain level of skill or training.