Home Equity Planning Concept
HOME EQUITY PLANNING TM
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next Home Equity Planning Seminar
The Missed Fortune concept can seem daunting at first glance,
but the idea is simple. It is based on a few facts that most
people are unaware of.
Equity is not liquid.
Let's create a hypothetical situation where a person has
$200,000 of equity built up in their house. Everything is fine
until this person gets in an automobile accident and can't work
for at least 6 months. The disability checks are not enough to
cover the mortgage and the car payment, not to mention put food
on the table. The first thing this person might try to do is
take out a home equity line of credit. Without a job, however,
the chances getting that credit from the bank are next to
nothing. Now the only option is to sell the house. This is not a
good predicament to be in.
Equity is not safe.
As illustrated in the above example, keeping money locked up in
the form of equity is not a safe investment. At the very least,
housing prices can drop and your equity does with it. Worst
case, you need the money. Banks are rarely in the business of
lending money to people who really need it. The only way to have
a chance of getting that money is to sell the house. It sits on
the market for too long and the bank, which is fully aware of
the amount of equity that has built up, swoops in and
repossesses it.
Equity has no rate of return.
Worst cases aside let's take a look at equity from an investment
standpoint. The point of investing is to make money. To make
money on an investment there needs to be a positive rate of
return. With a negative rate of return you lose money, and with
no rate of return your money just sits there. Equity has no rate
of return. There is no interest rate that is compounding and
causing it to grow. The only way that equity changes is with the
unpredictable fluctuations in the real estate market. In a
falling market the equity that is locked up in a house can
shrink significantly.
The basic premise of the Missed Fortune concept, based on
those three facts, is this:
If equity is cashed out and invested in a safe and predictable
arena, where there are compounded interest rates causing it to
grow in a tax free environment, such as a Universal Life policy,
then the money can grow unaffected by market fluctuations. In
this situation the money is liquid. It can be accessed, also
free from income tax. Your equity, properly managed, now becomes
a viable retirement plan, far above and beyond taxable 401(k)'s
and IRA's, which is another area in which this concept can be
put to use. Furthermore, when it is all said and done, by
investing in a Universal Life product you leave a sizable death
benefit to your heirs, all from money that would otherwise be
sitting in some mythical land where it is called equity, earning
nothing.
In February, two unrelated LifePro associates and a Mortgage
Broker brought me copies of a newly released personal finance
book, "Missed Fortune 101". Each one of them suggested that I
read it. In March, they collectively produced over $400,000 in
new life target premium using concepts outlined in the book.
That got my attention and in April I flew to Utah twice to meet
and visit with the author, Douglas Andrew. As of today we've
submitted over 2 million in new life target premium!
-Bill Zimmerman, LifePro President HEP Resources and
Solutions:
Indianapolis Life
F&G Life
Allianz
AIG
Do you have clients in mind that could benefit from this?
The possible client base for this concept is huge!
Today is the day to realize the potential that you can reach. We
hope you will allow us to create the "Family Bank" for you and
your clients.
www.LifePro.com