I have this teeny weeny apartment. It is old - of course, not old as me. But old nevertheless. And it does fetch me some rental income, which covers about half my monthly expenses (without considering any provisions). And it also rescues me from many financial debacles. If you are wondering how, let me tell you. Everytime I find I am short of funds for any big and unplanned expense, I just have to walk to the bank and the banker obliges me with that additional mortgage on it. I bought it for 2.55 and today it is worth about 16. I owe the bank about 4.00 on it as of date. And I am not in hurry to pay up the mortgage. Ah! so you do know that equated monthly installments have that interest and principal component, and these can be reduced from the annual income. And you also know that the EMI at a later date will be of little value to me. In all probability, I wouldnt even be able to pay my utility bill out of it. That is the discounting for inflation, for those of you who didnt know this. Discounting is opposite of compounding. The person who pays the money gains in it. Coming back to the my reasoning, I am very good at spending and one of the reason I have chosen to work from home is to keep me from going to those shops and bakeries. But - this cant be the reason for me wanting you to read through this much. Could it? Well, I found a way that I could save for retirement through mortgages. It is expensive no doubt, but pretty reliable. You never know which mutual fund is going to run away with your funds, and shares do have that element of risk. Gold everybody knows how difficult it is to stock. So how about mortgaging your asset, taking that additional loan that you dont really need, and putting it in long term government securities that fetch you monthly income? You only need to pay to the bank the difference between the monthly income from the loan converted into deposit, and the installment that the bank is charging! You still get to claim it as interest paid to the bank against your interest earned during the year in the tax calculations. And loans can be increased periodically. It has prevented me from spending recklessly. Tell me it is not dumb.