TWO TYPES OF INTEREST
1) COMPOUND (This is what we want to earn)
2) SIMPLE (This is what we want to pay)
Take a yearly look at all investments, including your work retirement plans (401k's, etc), Personal investments and your home equity.
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FOUR KEYS TO ANY INVESTMENT
TAX STRATEGIES
Are you choosing the best method?
Take a yearly look at all investments, including your work retirement plans (401k's, etc), Personal investments and your home equity.
Pay off your House?
We are taught to pay off a mortgage.
Is this really the best strategy?
What happens to the equity if we ever got sued? What happens if we need to borrow some of that money during a time of emergency such as a Disability or Job Loss? When we retire, can we access our money to live on without losing our house to a reverse mortgage?
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IF what you always thought to be true turned out not to be true ...
When would you want to know???
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Take a moment to learn about EQUITY REPOSITIONING
CLICK HERE
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Take a moment to learn about EQUITY REPOSITIONING
CLICK HERE
What if what you’ve been told about paying off your mortgage and saving in your company retirement plan were wrong, when would you want to know? How do you maximize and protect your greatest financial asset, your home...?
Learn how to take steps to bridge the gap between securing your future, sending your kids through college and paying off your mortgage sooner... without increasing your monthly expenses one dime.
The answer is the concept of EQUITY REPOSITIONING
Equity Repositioning SNAP-SHOT
Home Equity is not liquid...
Let’s create a hypothetical situation where a person has $200,000 of equity built up in their house. Everything is fine until this person gets in an automobile accident and can’t work for at least 6 months. The disability checks are not enough to cover the mortgage and the car payment, not to mention put food on the table. The first thing this person might try to do is take out a home equity line of credit. Without a job, however, the chances getting that credit from the bank are next to nothing. Now the only option is to sell the house.
Let’s create a hypothetical situation where a person has $200,000 of equity built up in their house. Everything is fine until this person gets in an automobile accident and can’t work for at least 6 months. The disability checks are not enough to cover the mortgage and the car payment, not to mention put food on the table. The first thing this person might try to do is take out a home equity line of credit. Without a job, however, the chances getting that credit from the bank are next to nothing. Now the only option is to sell the house.
This is not a good predicament to be in.
Equity is not safe...
As illustrated in the above example, keeping money locked up in the form of equity is not a safe investment. At the very least, housing prices can drop and your equity does with it. Worst case, you need the money. Banks are rarely in the business of lending money to people who really need it. The only way to have a chance of getting that money is to sell the house. It sits on the market for too long and the bank, which is fully aware of the amount of equity that has built up, swoops in and repossesses it.
Equity has no rate of return...
Worst cases aside let’s take a look at equity from an investment standpoint. The point of investing is to make money. To make money on an investment there needs to be a positive rate of return. With a negative rate of return you lose money, and with no rate of return your money just sits there. Equity has no rate of return. There is no interest rate that is compounding and causing it to grow. The only way that equity changes is with the unpredictable fluctuations in the real estate market. In a falling market the equity that is locked up in a house can shrink significantly.
The basic premise of the Home Equity Repositioning concept, based on those three facts, is this:
If equity is cashed out and invested in a safe and predictable arena, where there are compounded interest rates causing it to grow in a tax free environment, such as a Universal Life policy, then the money can grow unaffected by market fluctuations.
In this situation the money is liquid. It can be accessed, also free from income tax. Your equity, properly managed, now becomes a viable retirement plan, far above and beyond taxable 401(k)’s and IRA’s, which is another area in which this concept can be put to use.
Furthermore, when it is all said and done, by investing in a Universal Life product you leave a sizable death benefit to your heirs, all from money that would otherwise be sitting in some mythical land where it is called equity, earning nothing.
Other principal protected investment products also exist...
Do you or someone you know , benefit from this concept?
CLICK HERE for more details
Equity is not safe...
As illustrated in the above example, keeping money locked up in the form of equity is not a safe investment. At the very least, housing prices can drop and your equity does with it. Worst case, you need the money. Banks are rarely in the business of lending money to people who really need it. The only way to have a chance of getting that money is to sell the house. It sits on the market for too long and the bank, which is fully aware of the amount of equity that has built up, swoops in and repossesses it.
Equity has no rate of return...
Worst cases aside let’s take a look at equity from an investment standpoint. The point of investing is to make money. To make money on an investment there needs to be a positive rate of return. With a negative rate of return you lose money, and with no rate of return your money just sits there. Equity has no rate of return. There is no interest rate that is compounding and causing it to grow. The only way that equity changes is with the unpredictable fluctuations in the real estate market. In a falling market the equity that is locked up in a house can shrink significantly.
The basic premise of the Home Equity Repositioning concept, based on those three facts, is this:
If equity is cashed out and invested in a safe and predictable arena, where there are compounded interest rates causing it to grow in a tax free environment, such as a Universal Life policy, then the money can grow unaffected by market fluctuations.
In this situation the money is liquid. It can be accessed, also free from income tax. Your equity, properly managed, now becomes a viable retirement plan, far above and beyond taxable 401(k)’s and IRA’s, which is another area in which this concept can be put to use.
Furthermore, when it is all said and done, by investing in a Universal Life product you leave a sizable death benefit to your heirs, all from money that would otherwise be sitting in some mythical land where it is called equity, earning nothing.
Other principal protected investment products also exist...
Do you or someone you know , benefit from this concept?
CLICK HERE for more details
CLICK HERE for a indepth explaination...
Your Financial Future...
CHOICE OR CHANCE?
It is amazing that so many people work hard for their money, yet put no time or effort into directing the financial futures of their families or businesses.
Organizing one's own finances is a daunting task, and mistakes can be very costly. Everyone needs sound financial advice and competent assistance to implement an integrated financial program. A trained and experienced professional can help you understand the financial planning process, and guide you to a better way of life, now, and in the future.
Financial Service Professionals can help you maximize the potential of your capital resources to provide for more rewarding lifestyles; fund better educations for your children; own a home or business; have comfortable and rewarding retirements with no worries about outliving your money; plan for distribution of your estate in a tax-efficient manner to the beneficiaries of your choice; and be protected from misfortune and liability along the way.
Business Owners need a business plan to increase profits and control expenses; a continuation plan to preserve the business in the event a principal or key employee is lost; cost-effective benefit plans that promote the recruiting and retention of qualified employees; protection for their businesses from theft, misfortune and liability; and buy-sell agreements when needed.
It is never too soon or too late to take control of your financial future.
For an initial consultation, please contact me.
Phone: (425) 280-9169
E-Mail: mailto:corbin@lindseyadvisors.com
Corbin Lindsey
Finanial Services Professional
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