Goodbye M3- What is the Government hiding?

by Tim McMahon

I'm surprised we haven't heard much in the news about this but as of March 23rd 2006 the government will no longer be publishing the M3 money supply data. Most people probably say "Who Cares?" Right?

But you should care! And here's why:

"The Federal Reserve tracks and publishes the money supply measured three different ways-- M1, M2, and M3.

These three money supply measures track slightly different views of the money supply.

The most restrictive, M1, only measures the most liquid forms of money; it is limited to currency actually in the hands of the public. This includes travelers checks, demand deposits (checking accounts), and other deposits against which checks can be written.

M2 includes all of M1, plus savings accounts, time deposits of under $100,000, and balances in retail money market mutual funds.

But that is all small potatoes, M3 includes all of M2 (which includes M1) plus large-denomination ($100,000 or more) time deposits, balances in institutional money funds, repurchase liabilities issued by depository institutions, and Eurodollars held by U.S. residents at foreign branches of U.S. banks and at all banks in the United Kingdom and Canada."

In other words, M3 tracks what the big boys are doing with the money. This includes US dollars held in banks in Canada and the UK (called Eurodollars) not to be confused with the Euro which is the standard currency of Europe.

So the question immediately arises why would the FED stop tracking this? The reason they give is that:

1) it will save money

2) That all the money that it tracks is tracked by other indicators.

First of all, since when is the government interested in saving money? I've never heard of a government program being cut once it is on the books. There are stories of government offices being created for the purpose of WWII and continuing on for decades even though the employees had absolutely nothing to do!

If they were eliminating M1 they could say the money is included in other indicators because M1 is included in M2 and M3. If they eliminated M2 it would be included in M3 but what is M3 included in?

So, perhaps I'm just suspicious by nature but it begs the question, what are they trying to hide?

Well, if you've read any of our other articles you will know that inflation and the money supply are very tightly integrated. Increases in the money supply are the direct cause of inflation.

With all its efforts at "Tracking Inflation" most everyone agrees that the last thing the Government really wants is for the general public to know how much it is stealing out of your pockets through inflation.

Inflation has been called "the hidden tax" and that is exactly what it is. When the Government "prints" extra money what do you think it does with it? It spends it of course!

What would happen if you started writing checks (creating money) from an account that was empty? You'd end up in jail! But that is exactly what the government is doing when it creates money out of thin air.

Enron isn't the only one who knows how to cook the books!

For years now in an effort to hide the actual amount of inflation, the Bureau of Labor Statistics (who tracks the inflation rate) has been erasing inflation through a trick called "hedonics".

Basically they say since a new computer is faster than an old one you get more for your money, so they adjust the price down.

So even though a new computer might cost you $500 they say since it is twice as fast, it is really only costing you $250. But try to explain that to "Best Buy" when you want to pick one up and see how far you get.

They use the same logic for cars and other things. Everyone who studies it knows the Government is fudging the numbers, but it has gotten so bad that now they have to hide the M3 altogether.

Again I ask why? Well, I have a theory. The U.S. trade deficit is running at an annual rate of about $800 billion. That means we are spending $800 billion more than we are earning in the world markets. Basically, we are sending dollars overseas (primarily to China) and they are sending us stuff.

Well, what are the Chinese doing with all that money we are sending them? Are they buying our stuff? Nope! That would reduce our trade deficit. They are actually saving about 50% of their Gross Domestic Product (GDP). In other words, as a Nation, they save half of what they make or about 1.1 Trillion Dollars a year.

On a nationwide basis (this includes Government, Business and personal) the U.S. only saves 13% of its GDP. But on a personal level the picture is much worse. Chinese households save 30% of what they earn while U.S. households save less than Zero! On average, we actually spend .4% more than we earn every year.

It is hard to imagine but it is true. So what are the Chinese doing with all that extra money? They can't just pile it up in their garage (if they had one). So what are they doing with it? Buying back our debt. The Chinese are huge buyers of U.S. Government Treasury securities.

Someone said recently that it's hard to tell who's crazier. "One spends money it hasn't got and the other sells to people who can't pay."

Basically, the Chinese are loaning us the money to buy their stuff. And the Government is printing the money to do it. So my theory is that in order to hide all the money that is being created and sent to China the government is going to stop tracking M3.

The Smoking Gun

It is no coincidence that the M3 went up an annualized 9.4% in the last three months and an annualized 17.2% in December alone and now the FED wants to stop tracking it!

Why bother tackling a problem of this magnitude when you can just bury the evidence? Who wants to leave a "smoking gun" laying around? A 9.4% increase in money supply should translate into a 9.4% inflation rate (if GDP produces exactly enough to counteract obsolescence).

Even if there is a 1% increase in the supply of goods, that still means that we really have 8.4% inflation rather than the 3.6% the BLS is telling us.

In order for the 3.6% number to be true-- we would have to have 5.8% more stuff than last year (9.4% - 3.6% = 5.8%). Do you have 5.8% more stuff than last year? I didn't think so.

The writing is on the wall. When the Government starts hiding data the problem is big! If this trend continues, inflation is going to come roaring back big time. We will see the late 70's all over again. The war is Iraq and the Billions in Hurricane damage have to be paid for somehow and the "hidden tax" is the easy way out.

Now is the time to begin stocking up on inflation hedges.

To Your Wealth and Abundance,

Alexander The Great Alperovich

How to Pay off Credit Cards Quicker

by Tim McMahon, Editor

If you have $5,000 - $10,000 in Credit card balances
You can save thousands using this simple method

Have you ever wondered how you can ever get out from under all that debt?

If so you are not alone! The average American household has over $5000 in credit card debt and many cards charge 18% - 21% per year in finances charges.

Did you know...

If you owe $5860 at 18% interest you will end up paying over $1000 in interest in just one year?

That means...

If you pay the minimum balance you are just paying the interest and you will NEVER get out from under all that debt.

Worrying about all that debt has to be stressful !

But if I could let you in on a little secret how you can sneak out from under that load of debt to a life of less worry about those bills would you be interested? Of course you would, who wouldn't?

If the first $1000 you pay just covers the interest and doesn't even make a dent in the principal, the key is to bypass the interest. At first you might be thinking, "that is impossible" the banks won't allow it. But that isn't true.

How to By-Pass the Interest

Your current bank won't let you just stop paying interest but that doesn't mean another bank won't. You see... banks are fighting with each other to see who can grab the most of those $1000/yr. income streams.

Put yourself in their place for a moment... What would you do to guarantee that someone would pay you $1000 per year for life? Would you be willing to give them the first year free?

That's exactly what banks are doing! They figure that once they have you it is a gravy train for them for years and years to come. So why not offer 0% interest for the first year?

Make the Bank's Greed Work for You instead of against You

So what we need to do is figure a way to beat them at their own game. If you pay the balance in full every month you get to use the bank's money for a month with no interest charges. Not bad free money...

However, once you rack up a huge balance it isn't possible to do that. So... that is why banks make it so easy to get the money. They want you to be in debt. So many banks offer a 0% "Introductory Rate" which usually lasts for 12 months. This is to give you time to rack up a big bill that you can't pay off.

But what if you could "turn the tables" on the banks and use that time to pay off your bills?

Use the extra $1000 to pay down the balance

The key is simply to transfer your balance from a card that is charging you 18% to a new card that is offering 0% interest and use the extra $1000 that would have gone toward interest on your old card to help pay off the balance during the 12 month introductory period. Simple right?

Be careful once the 0% period expires because rates will jump up.

You want to be sure to use the introductory period to get ahead (not further into debt).

Simply Divide your current balance by 12 depending on the card you have chosen. If you owe $5000 it would be $5000 divided by 12 which equals $416.70

Then make payments of 1/12th each month

Remember at least $67 out of that $416.70 would have gone toward interest under your previous card!

What if your balance is so large you can't make payments of 1/12th ?

Don't think you can make payments of 1/12th? Pay 1/24th and get a different zero% card 12 months from now. 1/24th of $5000 is $208.33

Remember this is only temporary! But if you can make a serious dent in your debt during the introductory period you will be way ahead.

Can you come up with $141 a month to get you out of debt?

To pay off the $208.33 you really only have to come up with an extra $141 a month ($208.33 minus the $67 you are already paying in interest). Most families initial reaction is "Oh we don't have an extra $141 per month!!!" But I am willing to bet that you do! The secret is knowing where to look!

Where to look for the Money?

How often do you eat dinner out? Fast food or Restaurants?

2-3 Times per week ?

If you eat out 10 or more times a month (2-3 times a week) An average family of 4 will spend about $30 at McDonalds for a meal... so 10 meals will be about $300 right there.

Give up one McDonalds meal a week = 4 x $30 = $120/month

Give up one Restaurant meal a week= 4 x $50 = $200/month

How much do you spend in vending machines for cokes and snacks?

Give up one candy bar or Coke from a vending machine a day = $30/ month

Do you take your lunch to work or eat out?

By bringing your lunch from home you can easily save $6/day x 5 days = $30 per week. $30 x 4 = $120/month.

What about potato chips...Soda or beer... or cigarettes? How much do you spend a month on them?

Two bags of Chips per week $3ea = $24 / month

Soda $20 - $30 / month

Beer ? $$$ / month

Cigarettes? $$$/month

Total

Here is how much one family could save:

Dinners $120+ Lunches $120 + Vending $30 + Beer $50 +Cigarettes $100=

Total savings $420/month

Of course your spending patterns will be somewhat different but...

I'm sure if you really put your mind to it you can find a way to come up with enough to pay 1/12th to 1/24th of your credit card debt off every month. Other ideas include having a yard sale and selling off things that you never use like those old golf clubs or treadmill that are just gathering dust in the garage.

(A better idea would be to give up the chips and start using the treadmill and use this as an opportunity to not only get your finances in shape but your body as well. Giving up McDonalds and potato chips might be a good start!)

Very Important!

If you can't eliminate all of your debt the next best thing is to at least take a big bite out of it. When the introductory period is about to expire find another new card with 0% and start the process all over again. Don't get caught when the card rate jumps up from Zero!

Make it a Habit

However much you decide to pay toward reducing your debt... make it a habit and pay that amount toward the debt every month.

Better yet, schedule the payment so 1/12^th or 1/24^th or whatever, is taken out of your checking account every month without your having to think about it. Make it like your house payment, it has to be done every month no matter what! You will be amazed at how little you will miss it if you schedule the payment and don't even have to thnk about it.

The key to this system

The key to this system is to not use the new card for new purchases until you have it entirely paid off (and then always pay the entire bill every month).

What About New Purchases?

So you might wonder what you are going to do about new purchases for the next year. The first rule is NEVER, NEVER, NEVER, NEVER, NEVER buy anything you can't pay off when the bill comes. (Unless it is on a zero interest card that is automatically scheduled to be paid off before the expiration of the 0% period.

Use the Two Card System

1) Use one card for new purchases and pay it off every month without fail.

If you don't think you have the will power to pay it off every month... use only a debit card attached to your checking account so you can't overspend.

2) Get a second card that offers 0% Balance transfers carry the balance on this card and pay it off before the introductory period expires!

Not all cards are created equal!

The key to this system is locating a card that will allow 0% interest on balance transfers. Some cards only offer 0% on new purchases.

Fortunately, I have been able to locate a couple of cards that fit the bill nicely. I've created links for a couple of my favorite 0% interest cards to make it easy for you.

For instance the Chase Platinum VISA® Card offers 12 months with 0% APR and may even offer a cash back bonus.

The Discover^® Platinum also offers 12 months with 0% APR with up to 5% cash back but be sure you understand the terms the key phrase is the "up to". If you are going to use the two card system you might want to use the Chase Platinum VISA® Card to transfer your balance and use the Discover^® Card for the new purchase card (that you will pay off every month).

What if You can't get a O% Balance Transfer card?

If you can't get a card with 0% interest on balance transfers there is another way but it is a bit trickier. The basics are as follows:

Step 1- Buy your new purchases on a card that offers 0% on NEW Purchases.

Step 2-Use the money you would have paid for purchases like groceries, clothing, gas etc. to pay off your high interest card. Over time your 0% card balance will increase and your high interest card will decrease.

Specifically How this works

You can use a card like the AMEX^® Blue card for all your new purchases (like food and clothing). Your rate will be 0% on the new purchases. The trick is to pay the minimum on this card and use the money you would ordinarily have spent on these items to pay down the higher rate card. So in effect you get the balance transferred to the AMEX card but it may take several months to accomplish. If you spend $1400/month on Gas, Food, Clothing etc. it will take four months to move your balance from your current card to the AMEX card.

A simpler choice (but a bit more expensive) is to transfer your balance to the AMEX^® Blue card if your current rate is higher than 3.99% transfer rate. Of course you won't save as much but some savings are better than none. Of course if you are trying to cut expenses you want a card with No Annual Fee (all the cards mentioned here have no annual fee).

I sorted through the terms on dozens of cards and have created links to some cards that look like they might be helpful. I personally use all of these cards.

Use the Banks greed against them

Just Choose the one (or two) cards that are best for you and click the card for further details (there is no obligation). Take advantage of the free money to reduce your debt by paying it off before the introductory period expires.

Best Wishes for a debt free life.

Alexander The Great Alperovich

Money Merge Accounts: Are They Really the Best Thing for You?

This revolutionary product is a good product for some, but the reality is that it may prove more costly to you over time.

Money Merge Accounts, or whatever else companies would like to call them, are good loan products for certain families. However, if you are a disciplined family and want increased safety and rate of return for the long run, these products will ultimately cost you considerably over time. A family who came to me to ask about these programs and if it was best for them ultimately realized they could do better.

This particular family is what I would call the ideal candidate for Money Merge Account programs and in fact the "simulator" that the company we use to offer this product shows that they would be able to pay off their mortgage in 6.9 years!!! That's phenomenal, right? If that remains to be their ultimate goal, then this product would pay off their loan the fastest, hands down according to the simulator.

However, if their goal is to build wealth over time, this loan program will actually cost them over $110,000 during the course of the next 30 years. Doesn't sound like much, does it? Who are you kidding; anybody would love to have an extra $100,000, wouldn't they?

How is this possible? They can achieve it through proper equity and debt management. Let's look at their exact scenario...

Estimated Home Value = $400,000
Current Mortgage = $196,000 with an $1100 P&I payment (4.875% 30 Year Fixed)
Income = $4,500 net per month
Monthly Expenses = $1,500 per month
Credit Cards = $20,000 ($600.00 per month @ 18%)
Auto Loan = $15,000 ($550.00 per month @ 5.5%)
Discretionary Money = $500.00 per month

When we look at the whole picture, and implement a properly integrated mortgage plan for this family, we find that we can do better. In fact, while it would take you a little longer to be able to pay off your mortgage, the power of compounding interest and not paying off the mortgage will result in $112,497 extra money.

Here is the recommended mortgage plan structure...

Cash-out refinance = $296,000 (30-year Fixed, Interest-Only @ 6.625%)
Pay Off Credit Cards and Auto Loan (same as MMA)
Setup Investment Account = $55,000 (remaining amount after refinance - earns 8%)
Tax Rate Used = 25% (Marginal Tax Rate may be higher for this couple)
Discretionary Money Used towards Investments (MMA uses towards mortgage payoff)

Using this mortgage plan and having the discipline to invest their savings, this couple would have accrued $2,580,662 in their investment account in 30 years. In comparison, using the MMA program and then investing the entire monthly amount into the investment account after the mortgage is paid off, the investment account would only grow to $2,172,165.

As you can see, even after paying off the mortgage in 30 years, the couple would have an extra $112,497 by using a proper mortgage planning strategy!!! Also, the point where they achieve true financial freedom, the point they could pay off their mortgage, is only delayed by 1.5 years.

Congratulations, You Have Taken Your First Step Toward True Financial Freedom.

We have Loans 4 U is not an ordinary mortgage company. We do not want to merely sell you a loan product. Instead, we want to be your partner in helping you realize your financial goals and dreams. We know that there is more involved in choosing a mortgage besides rates and fees.

Even the lowest rate on the wrong mortgage plan can be a mistake that costs you thousands of dollars!

In a recent study, the conclusion showed that the average American mis-consumes debt totaling $297,000 over their lifetime. For that reason, we believe that a mortgage is a financial instrument, much like an IRA or a 401(k). Your mortgage needs to be integrated into your short and long-term financial plans.

In fact, if the proper mortgage strategies are utilized, you can get out of debt faster, create additional reserves for future financial goals such as retirement or college savings plans for your children, reserves for emergencies, and have a more comfortable way of life.

You Are In Control

What would you do differently if you were able to free up cash?

Pay off high interest debt?

Increase your retirement savings?

Prepare for your children's education?

Prepare for a financial emergency?

What about being able to upgrade to your dream home?

Add to your real estate portfolio to further tap equity?

Whether you are refinancing, moving to a new home, or a buying your first home, seeking the guidance of a We Have Loans 4 U is crucial to your financial future. There are many who claim to be mortgage planners or know what is best, but professionals demonstrate their knowledge and their commitment to help you chose the right mortgage to achieve true financial freedom and enjoy life.

With our diversified portfolio of mortgages, the choice is yours.

What the experts are saying...

"Carrying a mortgage doesn't cause you to lose any money at all. In fact, just the opposite is true: carrying a mortgage is actually quite profitable. It's eliminating the mortgage that forces you to give up profitable opportunities.

If you have a mortgage and you're dreaming of the day when you make your final payment, you're trying to do something that financially successful people do not do."
- Ric Edelman: New York Times Best-Selling Author of Ordinary People, Extraordinary Wealth.

Stop Dreaming and Start Doing. Take the First Step on the road to true financial freedom today!

Call Today 1-718-407-6304

P.S. - Remembers, rates are still low and qualifying is easy. No matter what your situation, you owe it to yourself and your family to take advantage of this opportunity. We can get you loan with score as low as 500.

The Moral of Our Story...

The Moral of Our Story...

"The Old Way of Thinking" can be devastating to your financial future.

You should never send extra money to your mortgage company. Instead, put that money to work for you.

Once you have all of the facts, it's easy to make the right decision.

People who understand how money works choose to carry a big, long mortgage and never pay it off.

How to win the money game

We Have Loans 4 U is one of Maryland's premier mortgage brokers, offering a diversified portfolio of revolutionary concepts and products designed to harness the power of your mortgage.

Allen Wu, Hai Nguyen and your truly, work together in We Have Loans 4 U, LLC. Two of us are Maryland, Washington D.C. and Virginia Certified Mortgage Planning Specialists and has become known as Proper Equity and Debt Management Experts.

We have loan 4 U can help you increase liquidity, safety, rate of return, cash flow, and tax deductions while minimizing interest expense and maximizing wealth accrual.

We do this by harnessing the power of compound interest to work for you, not against you.

Educating and empowering our homeowners is a way of life at Our company. We treat it as our ministry and a way we can give back to our community.

A TALE OF TWO HOMEOWNERS

This story begins with two homeowners, each earning $70,000 a year. They each have $60,000 in savings, both are buying $300,000 homes, and they each have an extra $200 each month to contribute. (please see footnotes for explanation of hypotheticals)


HomeOwner "A"

Believes in the "Old" Way, paying off the mortgage as soon as possible.


* 15- year mortgage at 6.25% APR
* $60,000 big down payment
* $0 left to invest
* $2,058 monthly payment (57% is tax deductible/ 33% Average)
* $1,868 Average monthly net after tax cost
* Sends $200 monthly to lender in effort to eliminate mortgage sooner

HomeOwner "B"

Believes in the "New" Way, carrying a big, long mortgage and never paying it off.


* 30-year interest-only mortgage at 6.875% APR
* $15,000 small down payment
* $45,000 remaining to invest
* $1,633 monthly payment (100% is tax-deductible)
* $1,176 monthly net after-tax cost
* Adds $200 plus $692 saved from lower net mortgage payment, into investment account which earns 8% rate of return.


Who made the right decision?

HomeOwner "A"

Believes in the "Old" Way, paying off the mortgage as soon as possible.


Results After Just 5 Years...


* Received $18,116 in tax savings
* Has $0 in savings and investments

HomeOwner "B"

Believes in the "New" Way, carrying a big, long mortgage and never paying it off.


* Received $27,431 in tax savings
* Has $132,584 in savings and investments


What if both homeowners suddenly lose their jobs?
HomeOwner "A"

Believes in the "Old" Way, paying off the mortgage as soon as possible.

* Has no savings to get through the crisis
* Can't get a loan because he has no job, even though he has $115,769 more in equity
* Must sell his home or face foreclosure because he cannot make payments
* At this point, it's a fire sale, so he must sell at a discount, then pay real estate commissions (6-7%)

HomeOwner "B"

Believes in the "New" Way, carrying a big, long mortgage and never paying it off.

* Has $132,584 in savings to tide him over
* Doesn't need a loan
* Can easily make his mortgage payment even if he's unemployed for years
* Has no reason to panic since he is still in control - Remember...Cash is King!

HomeOwner "A", who never wanted a mortgage in the first place, is now in financial jeopardy because he was trying to pay off his mortgage the wrong way.


HomeOwner "A"

Believes in the "Old" Way, paying off the mortgage as soon as possible.

Results After 15 Years

* Received $30,961 in tax savings
* Has $60,485 in savings and investments
* Owns home outright

HomeOwner "B"

Believes in the "New" Way, carrying a big, long mortgage and never paying it off.

* Received $82,294 in tax savings
* Has $457,458 in savings and investments
* Has enough savings to pay off the mortgage balance of $285,000 and still have $172,458 left over.


Results After 30 Years

HomeOwner "A"

Believes in the "Old" Way, paying off the mortgage as soon as possible.

* Received $30,861 in tax savings
* Has $981,375 in savings and investments
* Pay Off home outright

Homeowner "B"

Believes in the "New" Way, carrying a big, long mortgage and never paying it off.

* Received $164,588 in tax savings
* Has $1,820,616 in savings and invesments
* Has enough in savings to pay off the mortgage balance of $285,000 and still have $1,535,616 left over and has decided to never pay off his mortgage!


Now...let me ask you which do you think is the right course of action - the "Old" Way or the "New" Way? Remember, HomeOwner B was able to increase his liquidity, rate of return, and tax deductions and accrued $554,241 more in wealth over the 30 years!

The above hypotheticals are for illustrative purposes only. Plans vary based on the needs and wants of the customer. The tax rate is based on 28% federal income tax only (Delaware does not have a state income tax). The investment account is asuming an 8% rate of return and actual rate of return may vary based on type of investment selected.

Want to learn more? call 410-553-2121

The Truth About Money

Here are 5 great reasons to carry a big, long mortgage, and never pay it off...

Reason #1: Mortgages do not lower home values.

Your House will increase (or decrease) in value whether or not you have a mortgage. In fact, most people discover that, over time, their mortgage balance falls while their home value rises - creating substantial wealth they never expected.

Reason #2: Your mortgage is the cheapest money you'll ever buy.

Most people need to borrow money during their lives, so why pay 18% to credit cards when you can borrow at rates of 8% or even less?

Reason #3: Your mortgage is the best way you can lower your taxes.

Interest you pay on personal loans, auto loans, and credit cards is not tax-deductible, but for most of us, interest you pay on mortgage loans is fully tax deductible, making the cheapest loan you'll ever get, even cheaper. Imagine borrowing money for a net cost of just 5%. You can do it with a mortgage loan!

Reason #4: Get the cash out of the house now, while you still can.

The main reason people turn to borrowing is because they have little or no income. But if you ever suffer a job loss, major medical or other financial crisis, you could find yourself unable to get a home loan. That's because lender's don't like to lend money if you are already in financial difficulty. That's why you should get a big mortgage now, before you need it - and while you still can.

Reason #5: Your mortgage becomes even cheaper over time.

Depending on the loan you choose, your payment never rises - but your income likely will. That means today's mortgage payment becomes increasingly easy to pay over time!

The rules of money have changed and nowhere is that more evident than with mortgages. To Build your Wealth call 410-553-2121 and leave a message for Alexander Great

Harness The Power Of Your Mortgage And Put More Money In Your Pocket

Let look at paradigm shift in thinking:

The "Old" Way of thinking...

First, get the lowest rate mortgage...

Then, start a bi-weekly payment plan...

And send in extra money whenever possible to reduce the principal balance...

This Depression Era mindset has been burned into the American psyche. Is it possible this is destroying your ability to achieve true financial freedom?

The New Rules of Money...
"You should get a big, 30 year mortgage and never pay it off." - Ric Edelman - New York Times Best-Selling Author of the New Rules of Money

The "New" Way of thinking...

Choose the best mortgage, not necessarily the one with the lowest rate...

Stay away from bi-weekly mortgage plans...

Never send extra money to your mortgage company...

Paying off your loan is like burying money in your backyard.

Your goal is to make the smallest payment with the biggest tax break possible. That means never paying off your mortgage.

To understand why, discover the Truth About Money by calling 410-553-2121

IF YOU HAD ENOUGH MONEY TO PAY OFF YOUR MORTGAGE RIGHT NOW, WOULD YOU? DOES IT REALLY MAKE SENSE?

Dear Friend,

Many people would. In fact, the 'American Dream' is to own your own home and to own it outright, with no mortgage.

Many people believe they must get the lowest rate mortgage, then start a bi-weekly mortgage plan, and send in additional money whenever possible to eliminate the mortgage as quickly as possible.

But, could it be this is exactly what you should not be doing?

If the American Dream is so wonderful, how can we explain the fact that thousands of financially successful people, who have more than enough money to pay off their mortgage, refuse to do so.

In other words, if you are attempting to pay off your mortgage as quickly as possible, you are doing something that financially successful people do not do.

How Much Money Would You Deposit in the Following Investment Account?

1. The customer can pay more than the minimum monthly contributions, but not less.
2. If the customer attempts to pay less, the financial institution keeps all previous contributions.
3. Each contribution made to the account results in less safety.
4. The money in the account is not liquid.
5. The money in the account earns a 0% rate of return.
6. The customer's income tax liability increases with each contribution.
7. When the plan is fully funded, there is no income paid out.

What is this investment? Most of you probably have this investment and do not even know it when presented in this fashion. Some of you may have guessed already, it is your Home's Equity.

Would you like to know a better way to pay off your home?

Would you like to increase your cash flow?

Would you like to learn why you may never want to pay off your mortgage?


Here is an example...

If you pay cash for a $100,000 home, you are saving yourself from the burden of paying a mortgage at a particular interest rate (let's say 6.5%). By doing this, you lose the opportunity to invest that cash in another investment vehicle. We do have SAFE Investment vehicle for you to that will bring you an 8-12% rate of return tax-free.

How much is the lost opportunity costing you?

Let's look at the real cost of paying off the mortgage and we will keep it to percentages for simplicity.

We will say you are a fairly typical person who lives in Maryland, so you are in the 28% tax bracket.

The cost of the mortgage is actually only 4.68% (6.5% - 28% tax deduction). So, when you look at the real cost of paying cash for a home in this example, you find that it is 3.32%.

Not much when expressed in a percentage, but if we look at the long term and base it on a $100,000 investment, you see that cost (3.32% rate of return over time) will be $270,370.95 over 30 years!

Could you use an extra $270,370.95?

Remember, that is only based on a $100,000 home and the average middle class Maryland home is $400,000 which the cost becomes $1,081,483.82!

Would you be upset if you had an extra $1,081,483.82 when you retired?

We know, you probably do not have the cash to pay for a home outright, so this doesn't work for you.

Well, what if we could show you how to create this type of wealth without changing the way you live right now? Would that interest you?

Since you need to borrow money during the course of your lifetime, doesn't it make sense to borrow the money as inexpensively as possible?

You should avoid high-interest, nondeductible debt such as credit cards, auto loans, and personal loans. Instead choose the better way...

Call 1-718-407-6304 and say Alexander Great send you

Make $1.3M Without Spending an Extra Penny!

Make $1.3M Without Spending an Extra Penny! Sound To Good To Be True? Read On…

Yes, I think outside the box because I personally work with Multi-Millionaires and Wealthy People who use these strategies Day In and Day Out. I understand that you all, probably, hungered for more examples of how the proper integration of your mortgage into your financial plan can put your financial plan on steroids. Here is an example of another actual client and the plan they are following now that doesn't cause them to change their budget by even one cent!

Bear with me as I will show you how it works…

Current Situation:
Mortgage Balance = $245,729 Payment $1,365
Tax Deductions $280

Just Screwed Car Loan = $18,131 Payment $428
Tax Deductions $0

L E Mon Used Car Loan = $5,532 Payment $282
Tax Deductions $0

Credit Card = $8,250 Payment $165
Tax Deductions $0 (payment is minimum due)

Savings I- All Retirement Accounts $110K, (no liquid accounts - no emergency funds)

What we did was refinance the entire loan and took additional cash out so the result was:

New Mortgage (30 Year IO)= $395,000 Payment $2,140
Tax Deductions $599
(net monthly savings of $421)

Immediately placed $102,358 in investment grade life insurance (actually over 4 years to meet TEFRA, DEFRA, and TAMRA limits) which planned net rate of return is 6%.

The $420 in savings will be added to the life insurance.

This results in the set up of their personal banking system of over $100,000 immediately and growing tax free, accessible whenever they want, and carries a freebie death benefit.

They were around thirty years old when they started, so they actually have more than 30 years to retirement.

But here are the projections 30 years down the road...

Insurance Contract Balance = $1,038,355
Mortgage Balance = $ 395,000

Net Gain by putting mortgage to work as part of their plan is $643,355!!

Keep in mind that they are

(1) not paying any additional money besides their current expenditures,

(2) have immediate liquidity, safety, and increased rates of return, and

(3) have less stress knowing that if an emergency occurs, or an impassable opportunity arises, they have access to a large sum of money very quickly.

This was based on a very conservative net rate of return of 6%.

Based on the past several years, the average rate of return for this type of insurance contract is close to 8%, which would result in an additional $706,955, a net total of $1.3M!

You may be sitting on a gold mine in your home that you didn't realize you could use this way.

Call Today to learn How we can do this for Your Home 410-356-6664