Ownership Accelerator video

Blind Faith Edward Winslow

Read what clients and business partners say here.

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Mr. Fixit & Mrs Paralegal

The Problem:

• Both are 62 years old, approaching retirement
• 2 years into a 5 year ARM Mortgage at 5.875% rate
• Over $63,000 debt, average interest rate 23%
• Not enough EQUITY to refinance high interest rates
• $2,200 positive cashflow… but paying all to interest
• Only $23,000 in Retirement… dropped over 40%
• Fears of never being able to retire

Their Needs:

• STOP the Retirement Account Risk Exposure
• DROP the sky-high interest rates
• Create “Breathing Room reserves”
• SLASH Mortgage costs without Selling Home
• Accelerate build-up of Equity
• Accelerate recovery of Retirement Accounts

Our Solutions:

• Reduce Average Interest by OVER 18%
• Accelerate and Move over $30,000 EACH YEAR into SAFE growth at a 6-8% reasonable rate
• Protect their Social Security benefits from getting hit with unnecessary Income Taxes
• Create REAL retirement OPTIONS, where none previously remained

Ms. High School Teacher

The Problem:

• 60 years old, approaching retirement
• Divorce left her with an Mortgage at 6.875% rate
• California home dropped 30% in value
• $2,200 more costs than income (dipping into savings)
• Savings Nest Egg accounts dropped over 40%
• Fears of never being able to retire
• Beach-house rental for grandkids from annual savings

Her Needs:

• STOP the Retirement Account Risk Exposure
• STOP the need to raid Nest Egg for expenses
• Create “Breathing Room reserves”
• SLASH Mortgage costs without Selling Home
• Accelerate build-up of Equity
• Retain ability to host grandkids at beach-house

Our Solutions:

• Reduce Total Interest by 4% overall
• Move $69,500 into SAFE Accounts to prevent further loss & add 6-8% reliable growth
• TEMPORARILY Reposition $137,600 of underperforming retirement equity INTO secured home equity (for stability & savings)
• Create $27,000/year Additional Cashflow SAVINGS ($2,250 savings monthly!)

CAREFUL who you take your ADVICE from

• She HAD been advised by her CPA to “sit tight & wait for the housing market to return!”
• He told her “You’ll have to skip your summer beach-house with the grandkids!”
• He told her “You need the tax-deductions on that 6.785% mortgage, don’t move your money out of your managed accounts!”
• “Sitting and waiting” was costing her… her security, her retirement future, and worst of all… her precious time with her grandkids!
• When we showed her the facts, she wondered WHY her CPA would tell her such things…
• He was NOT managing her growth accounts,
• BUT his office neighbor (stockbroker) WAS!

Mr. Contractor & Mrs. Consultant

The Problem:

• Rebuilding careers after corporate America gave them a “new opportunity”
• She’s 60, has business consulting clients
• He’s 64, starting property service business
• Retirement accounts underwater 60%
• Income down 65% (but future IS looking bright)
• Current Income was HALF their costs of living (dipping into accounts that have already lost money)

Their Needs:

• STOP the Retirement Account Risk Exposure
• STOP the need to raid Nest Egg for expenses
• Create “Breathing Room reserves”
• SLASH Overhead costs without Selling Home

Our Solutions:

• TEMPORARILY Reposition $220,000 of battered retirement funds INTO secured home equity (for stability & savings)
• Establish over $91,000 of safety reserves
• SLASH interest costs, creating $73,140/yr SAVINGS (6,095 savings monthly!)
• NO NEW ACCOUNTS REQUIRED!

Our Results:

• Previous Effective Interest Cost = 6.39%
• Previous Savings Account Losses = -20%
• Rebalanced Interest Cost = 2.96%
• GUARANTEED Savings = $73,140
• APR BELOW 3.2% (Total Interest cost-side)
• 33.2% (RISK-FREE Returns on Savings)

Family of 4

Situation

• He’s 47 – Software (sole breadwinner)
• She is 43 - Mom
• 10 year old Son #1
• 3 year old Son #2

Their Dreams:

• She wants to return to school to get a Professional Degree (6 years tuition)
• They want to build College Tuition Funds for both sons
• They want freedom from Retirement worries
• They want a tax-advantaged plan that provides FLEXIBILITY

RESULTS Of Our Plan:

• NO CHANGE to Lifestyle Money budgets
• $20,000 Saved annually in Interest Alone!
• Wife can IMMEDIATELY begin University Studies
• Both Sons’ 4-year tuitions ($25,000/year) FULLY-FUNDED
• Full Flexibility – No Restrictions on Funds Usage
• NO CONFLICT with potential for grants or low-cost loans.
• Complete control for Wife’s tuition, and/or either Son’s tuitions, AND/OR retirement use, NO PENALTIES
• NO required distributions, at ANY age
• Tax-Free $150,000/yr Income available age 65 to beyond 100

ULTIMATE RESULTS:

• Perpetual Retirement Income (even AFTER Tuition Exp.)
• Put To Work $497,000 Under-Performing, “Lazy” Money
• 100% Principal Protection (ZERO MARKET RISK)
• 8.81% Estimated TAX-FREE Indexed Growth
• Emergency Liquidity As-Needed (“Just In Case” money)
• Funds-Use is COMPLETELY at Their Discretion
• At husband age 90, Value STILL holds $1,782,000
• At husband age 100, Value STILL holds $4,500,000

Maria & Jonathan

Trouble

• 1 House
• 2 Incomes
• 3 Teenagers
• Late 40's
• Big fans of radio financial gurus...
• Got convinced to aggressively accelerate mortgage elimination
• Oldest daughter "Troubled Child"…
• Ultimately had a baby w/o a father
• Maria & Jonathan now have cash flow trouble
• Almost at risk of foreclosure
• No safety reserves, growing bills
• Tiny retirement accounts, shrinking hope,
• Exhaustion, depression, approaching desperation

Solutions;

• Separated accumulated home equity,
• Paid off all "surprise expense" credit balances,
• Reduced monthly costs by $2,000
• Max-funded retirement accounts
• On track for 1 FULL income replacement in 20 years, both by 30 years.

Matt & Liz

Setup

• Two incomes
• One 18-month-old
• Two ROTH IRAs
• One growing liquid account for emergencies
• Two mortgages

Implement

• Home increased in value $80k
• Refinanced from a 100% Interest-Only to a 90% Option ARM and pulled out $34k
• Invested cash out:
• $8k went into EACH of their ROTH IRAs to max out 2006 and 2007 (refinance was completed before April 15)
• $15k went into another investment account, $8000 of which is earmakred for daugher's collage
• Remaining went into a liquid emergency fund earning ~7%
• Lowered monthly mortgage payment by ~$200

Result: Safety

• ONE WEEK after refinance was completed Matt lost his job.
• Bright side:
• Lower monthly payment
• No mortgage payment first month after a refi
• Full emergency funds
• Investments "taken care of" for the year
• Without tightening the budget, Matt & Liz could survive off of their emergency funds for at least six-months.

Read Testimonial

"Two Brothers"

• Both earn $75,000 a year
• Both have $50,000 in cash
• Both buy a $250,000 house

Nick wants to minimize his mortgage, so he uses his $50,000 in his savings as a down payment and he opts for a 15-year loan at 6.75 percent. His monthly payment is $1,770 -- but only 74 percent of that payment is tax-deductible interest; the rest in principal. Therefore, Nick's net after-tax cost for his mortgage is $1,489. And to pay off his mortgage even quicker, Nick sends in an extra $100 with every payment. Of course, these payments are devoted entirely to principal, and therefore provide no tax deduction.