Money Merge Account (MMA) How can I pay my home off early? Conventional Banking Refinance to a lower interest rate Apply additional money to each payment.

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Presentation transcript:

Money Merge Account (MMA)

How can I pay my home off early? Conventional Banking Refinance to a lower interest rate Apply additional money to each payment Bi-weekly payment Money Merge Account system No refinancing necessary of your 1 st mortgage No alteration to your current standard of living

PrincipalInterestBalanceEquityPaid Month 1 Month 2 Year 1 Year 5 Year 10 Year 21 Year 30 $ $1, $200.10$ $210.33$988.77$197,543$2,457$14,389 $267.22$931.88$186,108$13,891$71,946 $360.44$838.66$167,371$32,628$143,891 $696.23$502.89$99,877$100,123$302,173 $200,000 Principal Balance 6% Interest Rate $1, Monthly Payment $431,677

ALOC Advanced Line Of Credit Checking Savings Credit Cards Revolving Debt 2 nd Mortgage MMA Software Checking Savings Credit Cards Revolving Debt 2 nd Mortgage

Money Merge Account (MMA) ALOC Functionality Becomes your primary checking account Deposit all of your income into ALOC Pay all your bills from the ALOC Optimum Performance of ALOC Deposit the maximum amount of money into the Advanced Line of Credit Keep it in there as long as possible

If you have any kind of debt, you should NOT have your money stagnating in a checking or savings account! CheckingSavings Create an Interest Cancellation Account

Australians pay $100,000 - $150,000 less in interest on their mortgages than do we Americans.

$200,000 Mortgage Savings $3,000 Checking $5,000

$197,000 $3,000 MortgageSavings Checking $5,000

$192,000 $3,000 MortgageSavingsChecking $5,000

$200,000 $40,000 Mortgage ALOC Checking Savings Credit Card Revolving debt 2 nd mortgage MMA Software

$195,000 $5,000 Funds Transfer Mortgage $5,000 ALOC Funds Transfer: borrow money from your ALOC to pay down your 1 st mortgage.

$195,000 Mortgage $ 0 ALOC - $5,000 Funds Transfer + $5,000 Pay Check $ 0

Money Merge Account (MMA) Funds Transfers: Every 2 to 6 months As you pay the ALOC down, when the balance is almost zeroed out, the software will optimize when to do another funds transfer How we pay the ALOC balance down: Using a portion of your discretionary income

Sample Family $5,000Monthly income -$4,000Living expense (mortgage, car payment) $1,000Discretionary income

$200,000 $40,000 Mortgage ALOC

Month 1$3,500MMA investment $4,000Expenses $7,500 $5,000Income $2,500Average Monthly balance Month 2$4,000Expenses $6,500 $5,000Income $1,500 $20.83 $12.50

Month 3$1,500 $4,000Expenses $5,500 $5,000Income $ 500 $3,675.77Funds transfer $4,175.77Average monthly balance $34.80 Interest Cancellation $17,249 Reduced mortgage by 18 months PrincipalInterestBalance Remaining Payments Month , , Month , Month , Month , Month 5 ` Principal Jump 3 month total $68.13 $ $ $ 19.38

Month 4$4, $4,000Expenses $8, $5,000Income $3,175.77Average Monthly balance Month 5$4,000Expenses $7, $5,000Income $2, $26.46 $18.13

Month 6$2, $4,000Expenses $6, $5,000Income $1, $2,920.23Funds transfer $4,096Average monthly balance $34.13 Interest Cancellation $12,274 Reduced mortgage by 16 months PrincipalInterestBalance Remaining Payments Month , Month , Month , Month , Month 8 ` Principal Jump 6 month total $ $ $ $ month total Interest Cancellation $29,523 6 month total Reduced mortgage by 31 months

Month 7$4,096 $4,000Expenses $8,096 $5,000Income $3,096Average Monthly balance Month 8$4,000Expenses $7,096 $5,000Income $2,096 $25.80 $17.47

Month 9$2,096 $4,000Expenses $6,096 $5,000Income $1,096 $2,917.68Funds transfer $4,003.68Average monthly balance $33.36 Interest Cancellation $11,155 Reduced mortgage by 14 months PrincipalInterestBalance Remaining Payments Month , Month , Month , Month , Month 11 ` Principal Jump 9 month total $ $ $ $ month total Interest Cancellation $40,678 9 month total Reduced mortgage by 42 months

Month 10$4, $4,000Expenses $8, $5,000Income $3,003.68Average Monthly balance Month 11$4,000Expenses $7, $5,000Income $2, $25.03 $16.70

Month 12$2, $4,000Expenses $6, $5,000Income $1, $2,917.67Funds transfer $3,921.35Average monthly balance $32.68 Interest Cancellation $ 10,184 Reduced mortgage by 14 months PrincipalInterestBalance Remaining Payments Month , Month , Month Month , Month 14 ` Principal Jump 12 month total $ $ $ $ month total Interest Cancellation $50, month total Reduced mortgage by 53 months

Loan amount: $200,000 MMA ProgramConventional Program Starting balance$200,000 Balance in 1 year: 10.4 years $70, years $231,677 $200,000 Balance in 5.5 years: Repayment time Total interest paid Total interest savings: $167,219 $184,811$184,752 Balance in 1 year: $197,543

Money works 24 hours a day 7 days a week 365 days a year It doesn’t take vacations It doesn’t call in sick It just works and works and works! Do you have your money working for you? ~ or ~ Do you have your money working for the bank?

Utilities Food Clothing Transportation Entertainment

Funds Transfers How much… - If you transfer too much, interest charges will eat you up - If you transfer too little, not enough principal increase - Dollar amounts are different every time How often… - Frequency varies every time

True Cost How much does that item really cost me over time……

Money Merge Account (MMA) Web site Does NOT move money Does NOT pay bills Functions as an account register –Wants to know how much money is coming in –Wants to know how much money is going out Tracks your monthly budget 10 minutes per month to update Continuous customer support

Purchase of an automobile - Should I make monthly payments (4% interest rate)? OR - Should I write a check from ALOC (8.6% interest rate)?

Borrow $25,000 at 4% for 5 years Payment of $460 Option #1 Finance the car at 4% interest rate

Option #2 Pay cash for the car using funds from the ALOC

Comparison Option #1 Finance the car Option #2 Pay cash using the ALOC years to pay off years to pay off Lien on the car Own the car outright **Even though the line of credit has an 8.6% interest rate we don’t pay 8.6% interest because we are using the ALOC as an interest cancellation account. Our effective interest rate is much lower!

Create A Retirement Nest Egg Your home is PAID OFF in 10.4 years For the remainder of the 19.6 year mortgage $1, per month $1, discretionary income 6% 8% 10% $973,000 $1,231,000 $1,575, years

15% - 25% ahead of written guaranteed pay off date - because the proposal is a conservative projection - because of the Report Section (people budget more)

Financial Optometry Report Option 1 Option 2 Years to pay off mortgage Effective interest rate 2.085% 6% Interest paid $70,422 $231,677 Interest saved $167,219 $0 Retirement account $1,000,000 $0 Pay off at age 50 yrs old 70 yrs old Move forward with MMA, or keep doing what you’re doing?

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