Jiyao Xu

CFP®
Personal Finance, Investing, Insurance
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“Jiyao Xu is the Co-Founder of X and Y Advisors, Inc., a fee-only financial planning firm providing comprehensive financial planning, investment management, tax preparation and accounting services to young Chinese professionals in the United States.”
Firm:

X and Y Advisors, Inc.

Job Title:

Co-Founder and President

Biography:

Jiyao Xu is a fee-only financial planner located in Los Angeles, CA and serving clients across the country via virtual meeting. He established X and Y Advisors, Inc. to make high-quality financial planning services available and affordable to young Chinese professionals living in the United States. 

After one year of experience with KPMG China, Jiyao realized that corporate finance is not his interest. In 2012, he came to Los Angeles to join his beloved wife, Vivianna, and study Personal Financial Planning. While taking different courses at UCLA, Jiyao managed to pass the CFP® exam and all three levels of CFA programs. He also went through the real estate broker education program and then worked for a local wealth management firm for several years. With what he has gone through, he understands the needs and concern of the young professionals living in the U.S. 

From his professional experience serving high-net-worth individuals, Jiyao realizes that there are so many financial planning strategies that could be applied and may even create relatively more value to young professionals. Therefore, he decided to establish X and Y Advisors, Inc. and share his knowledge to help more people and families.

CRD Number:

6407113

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April 2018
    Social Security, Retirement
last month
    International / Global, Taxes, Income Tax
January 2018
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    Insurance, Real Estate

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    Debt, Investing, Real Estate
Should I pay off my mortgage or use my liquid cash to invest?
36% of people found this answer helpful

The key to your question here is to understand how Amortization works. For a fixed 30-year mortgage, your mortgage payment consists of both interest payment and principal payment every month. Even though the total monthly payment amount is the same, the portion of the interest and principal payment are different each month. In general, the portion of the interest payment is the largest in the first month and then keeps decreasing over time. On the other hand, the portion of your principal payment is the smallest in the first month and then keeps increasing over time. There are many amortization calculators like this online. You could simply put your information in and find out how much interest you are currently paying from the amortization schedule.

The point here is that since you are in the 28th year of a 30 year mortgage, the interest portion of your monthly payment should be really small. The majority part of your payment now is paying back your principle. In other words, you should use your actual interest payment rather than the 4.05% interest rate when you compare it to other investments.

It is very hard to give you a definite answer without knowing your overall financial situation like income, expenses, other investments, and debts, etc. Based on the limited information here, you are probably better off to keep paying the regular mortgage payment and invest the additional cash into a well-diversified portfolio based on your risk tolerance and investment objectives. In addition, even though paying off the mortgage may not make sense from the financial perspective, you may feel a lot better emotionally when you are finally free of debts. You should make your decision based on your specific situation. And don't forget to keep enough money in your emergency fund. Hope it helps. 

 

 

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