Thinking Outside the Mortgage Box
Presented by World Savings
CREDIT?
CASH FLOW?
MORTGAGE?
INVESTMENTS?
RETIREMENT?
Typical American Family
Annual Income $100,000 Taxes -30,000 PITI -30,000 Automobile -6,000 Credit Cards -5,000 Total Expenses -$71,000 Balance $ 29,000 ($2,400 / month)
Monthly Cash Balance
Monthly Balance
Utilities Telephone Cel Phone Gasoline Car Food Child Care Clothing Cable Internet -$200 -100 -200 -125 -300 -600 -1,000 -100 -50 -50
$2,400
-$325 College Fund? Retirement? Lattés? Movies? Dinners out?
The Problem?
Cash Flow!
Example: $250,000 Mortgage
Fixed rate at 5⅜% interest Payment = $1,400 Options loan at 1.95% Start Payment = $917 The difference in Cash Flow Year 1 = $5,796 Year 2 = $4,968
Options!
Pay off Debt Invest for Retirement Create Freedom!
Debt Solution
4.5% interest rate on loan vs. 18% interest rate on credit cards
You choose!
Retirement Solution
Year 1 Cash Flow $5,796 Year 2 Cash Flow 4,968 Company 401K Match 3,000 Tax Savings 2,000 Investment Yield 1,000 Total Investment $16,764
You do nothing more!
$16,000 Invested
30 year old, invests $16,000 in 401K at 10% Age 37 = $ 32,000 Age 44 = $ 64,000 Age 51 = $128,000 Age 58 = $256,000 Age 65 = $512,000
ALL created from an initial cash flow of $9,000! Imagine if you kept this loan for 3, 5, 10 years!
Where do YOU want to be?
Inside the box?...
Or enjoying your freedom outside the box?
The choice is YOURS!