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The Hot New Smart Money Concept,
'Missed Fortune' In A Nutshell
The Value Of the
'Found Money Management' System
Financial Guru - advises a BIG 30
year mortgage
'Missed
Fortune' In A Nutshell
The
'Missed Fortune' concept is helping the more
affluent families and businessmen to
understand the disadvantages of building up
equity in their home and leaving it there.
The basic premise is that your home will
appreciate the same amount in value whether
you have equity built up in the home or not.
If this is true, and it is, then the equity
you have built up in the home isn't growing.
From a business or financial perspective
does that make any sense?
Accordingly, if you could borrow out the
equity in your home and make more than it's
costing you, aren't you much better off?
The 'Missed Fortune' book recommends you
refinance your home to remove as much equity
as you can. They recommend using an interest
only mortgage loan, which in many cases
would mean your total mortgage payment would
be less than you are paying today. Then you
invest your home equity into an 'Investment
Grade Life Insurance Policy.'
A simplistic example:
If you have $100,000 of equity in your
home and you could borrow it out with a
4% interest only loan, it would cost you
about $4,000 per year. If you can write-off
the interest on your income taxes, then your
net cost for the loan is about $3,000 per
year. In thirty years, your total after tax
payments would equal $90,000.
If you invest the $100,000 into an
investment grade life insurance policy and
you earned 7.2% after expenses, in thirty
years you would have $800,000.
If you then paid off the original $100,000
mortgage on the home, you would have
$700,000 left in the life insurance policy
to generate a tax free income. In effect,
you've spent $90,000 to make $700,000.
While there are some cautions and debatable
mathematical inaccuracies in the book, the
overall concept is very valid. And when done
properly, the 'Missed Fortune' concept can
help many people to accumulate exceptional
wealth.
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.
Yours in Success,
Nathalie Vaiser, FMM |
