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Wisely Using
Home Equity
The Hot New Smart Money Concept
A
few years ago, Douglas Andrews wrote a book
called 'Missed Fortune' and it's taken
financial services industry by storm. This
book explains, in great detail and refines
in today's terms, an extraordinary smart
money management concept that has been used
by the leading Financial Advisors, for 100
or more years, to help Affluent Families and
Businessmen to amass great fortunes.
Using this refined concept, Middle American
families can now learn how to easily:
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Become debt free
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Improve their cash flow
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Reduce income taxes
-
Protect the people they love
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Fund a college education for their
children
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Plus, have the retirement of their dreams
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And, in many cases these families can do
it all without changing their current life
style.
When done properly, using the 'Missed
Fortune' concept, you can dramatically
enhance your family's situation almost
overnight, without taking extraordinary
risks. In fact, as you'll discover while
reading the book, by using this smart money
concept you are actually significantly
reducing the risk in your family's financial
life.
How This Refined Smart Money Management
Concept Works
In a nutshell, the flexibility of new
innovative mortgage products have expanded
over time and now include products featuring
'Interest Only' payments rather than the
combined principal and interest payments of
a traditional mortgage. These new products
can help families to free up money that they
typically would have put toward the
reduction of their mortgage principal. This
freed up money can now be used to quickly
reduce debt and create an extraordinary
investment plan for the future.
Using Home
Ownership As A Strategic Investment
In a recent Morgan Stanley article, they
state: The decision to invest in a home is
not only a practical decision in terms of
meeting lifestyle and family needs, it can
also serve as a means of accumulating wealth
through property appreciation. Additionally,
the favorable tax treatments of mortgage
interest and capital gains have made home
ownership a strategic investment decision.
Along with the deductibility of mortgage
interest and the special treatment of
capital gains there are unique benefits
associated with leveraging an investment
that is a relatively stable asset. The
wealth accumulation benefits associated with
a tax-advantaged, highly leveraged purchase,
such as a home mortgage, can be substantial.
Thus, a properly financed home can enhance
an individual's overall investment strategy.
An ARM Can Save
Homeowners A Ton Of Money
According to Chairman Greenspan: Homeowners
can save a ton of money if they use an
adjustable rate mortgage instead of a fixed
rate mortgage. For his evidence, he pointed
to what would have happened if you had taken
out an ARM 10 years ago. Back in 1994, fixed
rate mortgages were around 8 percent and
adjustable rate mortgages were in the 6
percent range. Since then, rates have been
on a strong downward trend: a 30-year fixed
rate currently carries a 5.5 interest rate,
while an ARM can be 4 percent or lower. So
if you took out that adjustable 10 years
ago, every time the ARM rate came up for an
adjustment - back then you had your ARM
rates reset every 12 months based on the
then current rate - chances were slim that
your payment would increase, since rates
were falling, not climbing.
The Investment Plan
For The Future
In order to take advantage of the unique
benefits of leveraging a home, you need to
guarantee that you are not putting your home
at risk. There are some unique features in
some non-traditional investment vehicles
that make them the investment product of
choice. In addition, the money inside these
products can, in many cases, grow tax
deferred and can be taken out tax-free.
I
highly recommend you read
'Missed Fortune 101' and then call or email me
to find out about the next FREE Educational
Workshop in your area. (I've included a link
below directly to Amazon.com if you would
like further information on this book)
Yours in Success,
Nathalie Vaiser, FMM
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