WARNING: THE INFORMATION ON THIS PAGE CAN HELP SUBSTANTIALLY INCREASE YOUR SAVING FOR RETIREMENT, AND/OR ALLOW YOU TO PAY OFF YOUR HOME FASTER (if you must). HOWEVER, THE MATERIALS PRESENTED ARE ADVANCED TECHNIQUES AND ARE ONLY RECOMMENDED FOR THOSE WHO CAN AND WILL FOLLOW A PLAN. Implementation of these concepts should be carried out by a financial professional, retirement planner, or an experienced investor as part of an overall financial plan. Only certain investment vehicles should be used.
Take any 100 people at the start of their working careers and follow them for 40 years until they reach retirement age, and here's what you'll find, according to the Social Security Administration: only 1 will be wealthy; 4 will be financially secure; 5 will still be working, not because they want to but because they have to; 36 will be DEAD; and 54 will be DEAD BROKE - dependent upon their meager Social Security checks, relatives, friends, even charity for a minimum standard of living. That's 5% successful, 95% unsuccessful.
Where will you be?
"How can a mortgage help me increase the amount I save for retirement?"
Our Cash Builder Home Loan Program, also known as a "Wealth Building" Mortgage, is a specialized mortgage program designed around your specific needs to create additional wealth and enhance your net worth. The basic premise is that it makes more sense to put your home equity to work, instead of letting it sit dormant in your home.
Consider how much of your hard earned money you would place in a retirement plan with the following attributes:
- You can select the amount you will contribute each month, and the period of time you will make contributions.
- You can pay more than the minimum monthly contribution each month, but not less. If you attempt to pay less, you lose all of your previous contributions.
- You cannot access the funds in your account without a lot of paperwork, a very good reason, and good credit.
- Every time you make an additional contirbution, your account equity becomes less safe, and your tax liability goes up.
- The money you deposit in the account earns 0% interest, and when it is fully funded, there is no income paid out.
Probably not much! It sounds like a terrible investment!
Unfortunately, that's exactly what you are doing if you maintain a traditional mortgage on your house.
Our Cash Builder Home Loan Program allows you to use your mortgage as a tool to safely create and protect a tremendous amount of wealth. The same technique used by banks, credit unions, and insurance companies to amass huge assets. You may never look at your home, your mortgage, or your retirement plan the same way again.
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Often, people resist new financial ideas at first glance because they seem complicated. So, before we get into too many details, make sure you are willing to absorb the information on this page with an open mind. If you are receptive to that, then you should take the time to evaluate the following statements, True or False.
- The equity in your home is an asset, in the truest sense of the word. In other words, it is money making you money.
- You can pay off your home the fastest by making additional payments to the principal balance on your home loan.
- The interest on your mortgage is an expense that should be eliminated as soon as possible.
Did you to answer True to one or more of the above?
If you did answer True to any of these questions, you could be needlessly restricting the amount you are saving for retirement, and the growth of your financial nest egg. Let's take a look at why these traditional homeowner tenets may not be your fastest path to financial independence.
First of all, let's look at the equity in your home. Does it really provide any return on your investment?
What if I were to tell you no?
You might say, "But real estate appreciates in value!"
True (most of the time...).
Or, "But I've heard real estate is a great investment vehicle!"
Also True (most of the time...).
"So how can the answer be no?"
The answer is NO, because the equity in your home does not appreciate, the home itself appreciates. Technically, the less equity you have in your home, the greater return on investment you receive as property values go up. In real estate, this is called "leverage".
Home equity is not a liquid asset. The only way to access it is by selling the home or obtaining a home equity loan, which could take time. When you really need it, time can be your worst enemy. Not to mention that it may be harder to convince an underwriter that you can pay it back.
Home equity is not always SAFE when left in a property. You could lose a substantial amount of your equity in a real estate market downturn. What if you had to sell during one of these downturns? What if for some reason you couldn't make the payments? Lenders always foreclose on the properties with the most equity FIRST.
Doesn't it make more sense to place your equity in a SAFE, liquid investment vehicle outside your home? That way, it can grow on its own, without affecting the appreciation of your property.
By the way, this is how banks, credit unions, and insurance companies make their money! They borrow it at a lower interest rate (savings accounts, CDs, the FED) and invest it at a slightly higher interest rate (mortgages, loans, etc...)
That way, you would have access to cash to make a monthly payment or two if you got in a bind. That way, your lender is much more likely to negotiate with you if you get in a sticky situation. That way, you'll have cash set aside.
We all know how volatile today's economy has become. What if you lost your job tomorrow? Are you really prepared?
Remember: Lenders always foreclose on the properties with the most equity FIRST. If you have made progress towards paying your house off early by paying towards the principal, you will be in REAL TROUBLE if you can't make your payments for a short period of time for ANY REASON.
Next, let's look at the quickest way to pay off your mortgage. Does it really make the most sense to use extra cash to pay towards your principal each month?
Not necessarily.
Conservative investments often earn rates at or above typical mortgage rates. The difference between that and what you are paying in mortgage interest is huge over the life of your loan. Even if your investment earns less interest than you are paying on your mortgage, you can still make more money than you are paying out if it is properly tax structured. Why not use the extra cash to build wealth for yourself? You can effectively build enough wealth to pay off your house sooner than you could by paying directly to the principal! Again, this is how the banks do it.
By the way, the banks love it when you pay additional principal towards your mortgage each month. They still get all of their interest due on the original principal balance. THIS IS KNOWN AS THE BANKER'S SECRET. Subscribe to our FREE Mortgage Tips Newsletter, and we'll send you a free report on how they do it.
Finally, let's look at mortgage interest expense. Is it really something you need to eliminate as fast as possible?
Maybe not.
If you open your mind, take everything you thought you knew, turn it upside-down at look at it from a new perspective, you might say it's just a cost of making money. AND it's 100% deductible! In effect, if you are properly investing your borrowed funds, it costs you nothing! In fact, you can't earn money as cheaply as you can borrow it against a property! Once again, the banks pay their own type of "mortgage interest" AKA "good debt". It's what they've used for years to amass huge assets!
REMEMBER THIS WARNING THOUGH: WHEN ACCESSING HOME EQUITY THROUGH A VEHICLE SUCH AS A MORTGAGE, YOU MUST CONSERVE AND GROW, NOT CONSUME.
The only conventional wisdom you should follow is START NOW. Compound interest is the secret that can make you wealthy, and the sooner you start, the more you will make. In order to grow your own money tree, you must first plant the seed.
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DON'T WAIT!
Subscribe to our FREE Mortgage Tips Newsletter today! It will provide you with a wealth of knowledge we just can't fit into a web page AND IT'S FREE. You will also get a copy of our free report on the BANKER'S SECRET. You will never look at any loan the same way again! No more procrastinating! When you have read enough and are ready to start your journey towards financial freedom, give us a call.
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We're happy to simply answer any questions you may have, or even prepare a FREE Cash Builder Home Loan Plan specifically designed to maximize your equity and cash flow requirements. There is absolutely no obligation other than your duty to spread the word to your family and friends, so they can build a future of financial independence of their own!
Remember, it's never too late to start. Different investment vehicles can provide extraordinary results at different phases of your life. Although we cannot give specific investment advice, we can tell you what has worked for us and our clients, and are happy to refer you to a financial professional that can help you determine the correct investment vehicle for your equity and cash flow funds.
If you are already working with a qualified financial planner, we are happy to provide you with a FREE Customized Cash Builder Home Loan Plan and all of the materials you need to share with your planner to see if our Cash Builder Home Loan is the right choice for you.
Don't miss your opportunity. Now is the time to jump-start your saving for retirement and retirement investing. Everyday you wait, you could be losing money! Sign up for our FREE Mortgage Tips Newsletter, or give us a call today!