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Money Merge Account

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

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Money Merge Account

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  1. Money Merge Account (MMA)

  2. 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 1st mortgage • No alteration to your current standard of living

  3. $200,000 Principal Balance 6% Interest Rate $1,199.10 Monthly Payment

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

  5. 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

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

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

  8. $200,000 $40,000 ALOC Checking Savings Credit Card Revolving debt 2nd mortgage MMA Software Mortgage

  9. $195,000 Funds Transfer: borrow money from your ALOC to pay down your 1st mortgage. $5,000 Funds Transfer Mortgage ALOC $5,000

  10. $195,000 - $5,000 Funds Transfer + $5,000 Pay Check $ 0 Mortgage ALOC $ 0

  11. 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

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

  13. $200,000 $40,000 Mortgage ALOC

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

  15. Month 3 $1,500 $4,000 Expenses $5,500 $5,000 Income $ 500 $3,675.77 Funds transfer $4,175.77 Average monthly balance Reduced mortgage by 18 months 3 month total $68.13 $34.80 Interest Cancellation $17,249 $220.48 $201.10 $ 19.38 ` Principal Jump

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

  17. Month 6 $2,175.77 $4,000 Expenses $6,175.77 $5,000 Income $1,175.77 $2,920.23 Funds transfer $4,096 Average monthly balance 6 month total Reduced mortgage by 31 months Reduced mortgage by 16 months 6 month total $146.85 $34.13 6 month total Interest Cancellation $29,523 Interest Cancellation $12,274 $238.41 $222.69 $ 15.72 ` Principal Jump

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

  19. Month 9 $2,096 $4,000 Expenses $6,096 $5,000 Income $1,096 $2,917.68 Funds transfer $4,003.68 Average monthly balance 9 month total Reduced mortgage by 42 months Reduced mortgage by 14 months 9 month total $223.48 $33.36 9 month total Interest Cancellation $40,678 Interest Cancellation $11,155 $256.59 $240.80 $ 15.79 ` Principal Jump

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

  21. Month 12 $2,003.68 $4,000 Expenses $6,003.68 $5,000 Income $1,003.68 $2,917.67 Funds transfer $3,921.35 Average monthly balance 12 month total Reduced mortgage by 53 months Reduced mortgage by 14 months 12 month total $297.89 $32.68 12 month total Interest Cancellation $50,862 Interest Cancellation $ 10,184 $275.04 $199.10 $ 75.94 ` Principal Jump

  22. Balance in 1 year: $197,543 $184,811 $184,752 Loan amount: $200,000

  23. 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?

  24. Utilities • Food • Clothing • Transportation • Entertainment

  25. 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

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

  27. 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

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

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

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

  31. Comparison Option #1 Finance the car Option #2 Pay cash using the ALOC 14.75 years to pay off 12.33 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!

  32. Create A Retirement Nest Egg • Your home is PAID OFF in 10.4 years • For the remainder of the 19.6 year mortgage • $1,199.10 per month • $1,000.00 discretionary income 6%8%10% $973,000 $1,231,000 $1,575,000 10.4 19.6 30.0 years

  33. 15% - 25% ahead of written guaranteed pay off date - because the proposal is a conservative projection - because of the Report Section (people budget more)

  34. Financial Optometry Report Option 1Option 2 Years to pay off mortgage 10.4 30 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?

  35. Get your Free Software Analysis

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