Mortgage PlanningHow can it work for you?

What is Mortgage Planning?

It is the same strategy the wealthy has been using for years to build a comfortable retirement – using existing assets to accumulate even more assets.

It is a new way of understanding and structuring your debt so you can worry less about liquidity and your long-term financial security.

Mortgage planning is essentially a long term solution that determines how to best manage your debts for the creation of wealth.

Why Mortgage Planning?

Learn how you can manage your home equity to increase liquidity, safety, rate of return and obtain tax deductions.

You can strategically use your mortgage to safely, conservatively and consistently build wealth for your future.

When property structured and integrated into your overall financial plan, your mortgage can be a powerful financial tool!

What is a Mortgage Planner?

I believe that it is important to integrate your mortgage into your overall financial plan so you can have a more secure future.

My goal is to help my clients build more wealth through mortgage plans that are a custom fit to them.

As a financial educator, I will help you understand how your mortgage can help you achieve both your short and long-term financial goals.

I will provide advice on: How to manage your debt How to improve your credit How to best utilize your home equity.

My Role as your Mortgage Planner

I am in this business to help my clients create wealth.

My goal is to help you successfully manage your home equity to increase liquidity and rate of return, diversify investments and maximize wealth accumulation.

What are your Goals? Create wealth & achieve a comfortable

retirement? OR Just to pay your bills & try to become debt free?

The Traditional Thinking

We learn from our parents and grandparents that homeownership with no mortgage is the ultimate goal because debt is bad. They tell us we will pay more in interest than the cost of the house in the first place.

BUT….

Paying off debt is not the same as accumulating assets that make money.

Every dollar we give to our bank to pay down the mortgage is a dollar we do not invest.

Paying off the mortgage saves interest but it denies us the opportunity to earn interest with that money.

The Law of Compound Interest

Compound interest is the concept of adding accumulated interest back to the principal, so that interest is earned on interest.

$10,000 invested at 6% per annum will accumulate to $17,908 at the end of 10 years.

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Secrets of the Wealthy

Their goal is wealth creation and asset accumulation, not debt elimination.

They will carry a big mortgage on their house even though they can afford to pay it off.

They typically take the longest amortization available e.g. 35 years, pay monthly instead of accelerated payments, and do not make lump sum prepayments though they can afford it.

They are not afraid of debt!

8 reasons the wealthy will carry a big, long mortgage

A mortgage does not affect your home’s value

You build equity regardless of the size of your mortgage

A mortgage is the cheapest kind of debt

Mortgage interest may be tax deductible

Mortgage payments get easier over time

A mortgage lets you sell without selling (by taking equity out)

A mortgage can help you invest quicker than you otherwise can, creating greater wealth

A mortgage gives you greater liquidity and flexibility *** (This is the biggest reason of all)

Source: Ric Edelman, a Registered Investment Advisor with Edelman Financial Services LLC; a #1 New York Times best-selling author.

The New Thinking

A mortgage is not just about home ownership. It is about using home equity to achieve financial success.

The Power of Liquidity: Stay liquid and have cash available to capture

investment opportunities. Provides a security blanket to weather a storm

should unexpected things happened in life e.g. loss of job.

Cash is King: If you owe the bank money, they are at risk. When you pay down your mortgage, you’re

transferring that risk from the bank to yourself.

A Tale of Two SistersOur story follows two sisters who started with similar financial situations. Please refer to our brochure for details.

What is required to implement Mortgage Planning?

Dedication to saving and investing for the future.

Not cashing out and spending your equity.

Not spending your tax refunds on personal needs.

Separating your household spending account from your investment transaction account – This is very important for tax deduction purposes.

Having qualified advisors overseeing your investment.

How Do You Invest All the Money?

Align yourself with a qualified financial planner and realtor to create a diversified investment portfolio.

Review all investment options and work with financial experts to pick the combination that suit your risk profile and long term goals.

Investment possibilities include: GICs Accumulation Annuities Blue Chip Stocks Bonds Segregated Funds Rental Properties Dividend Stocks Universal Life policy ….and many more

Our Mortgage Planning Process

We’ll understand your long term financial goals using our simple goals worksheet.

We’ll analyze your debt structure and recommend ways to optimize it for wealth accumulation.

Customized mortgage plan.

Annual review.

No cost to you.