A financial GPS to find the quickest route to ZERO debt, Presented by Serena Lambiase
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A financial GPS to find the quickest route to zero debt; Software program that guides you to pay off your morgage and ALL debts faster by using interest cancellation methods; NO LOANS necessary
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A financial GPS to find the quickest route to ZERO debt, Presented by Serena Lambiase
- 1. J bringing your finances into focus for your future Serena Rinaldi Lambiase (203) 261-1982 [email_address]
- 2. DEBT IS AT AN ALL TIME HIGH The Problems
- 3. LITTLE TO NO FINANCIAL EDUCATION IN SCHOOL The Problems
- 4. DAVID MONTGOMERY BATON ROUGE, LA $200,000 TOTAL INTEREST SAVED USING THE MONEY MERGE ACCOUNT ® CONVENTIONAL PROGRAM ma Money Merge Account ® 51 YEARS OLD 51 YEARS OLD 28.5 YEARS TO ZERO 10.4 YEARS TO ZERO $255,000 IN INTEREST $55,000 IN INTEREST
- 5. 30-Year, $200,000 Loan - 6% Interest Rate - $1,199.10 Monthly Payment The Real TRUTH in Lending Principal Interest Balance Equity PAID Month 1 Month 2 Year 1 Year 5 Year 10 Year 21 Year 30
- 6. 30-Year, $200,000 Loan - 6% Interest Rate - $1,199.10 Monthly Payment The Real TRUTH in Lending Principal Interest Balance Equity PAID Month 1 $199.10 $1,000 Month 2 Year 1 Year 5 Year 10 Year 21 Year 30
- 7. 30-Year, $200,000 Loan - 6% Interest Rate - $1,199.10 Monthly Payment The Real TRUTH in Lending Principal Interest Balance Equity PAID Month 1 $199.10 $1,000 Month 2 $200.10 $999 Year 1 Year 5 Year 10 Year 21 Year 30
- 8. 30-Year, $200,000 Loan - 6% Interest Rate - $1,199.10 Monthly Payment The Real TRUTH in Lending Principal Interest Balance Equity PAID Month 1 $199.10 $1,000 Month 2 $200.10 $999 Year 1 $210.33 $988.77 $197,543 $2,457 $14,389 Year 5 Year 10 Year 21 Year 30
- 9. 30-Year, $200,000 Loan - 6% Interest Rate - $1,199.10 Monthly Payment $58,055 I nterest The Real TRUTH in Lending Principal Interest Balance Equity PAID Month 1 $199.10 $1,000 Month 2 $200.10 $999 Year 1 $210.33 $988.77 $197,543 $2,457 $14,389 Year 5 $267.22 $931.88 $186,108 $13,891 $71,946 Year 10 Year 21 Year 30
- 10. 30-Year, $200,000 Loan - 6% Interest Rate - $1,199.10 Monthly Payment The Real TRUTH in Lending Principal Interest Balance Equity PAID Month 1 $199.10 $1,000 Month 2 $200.10 $999 Year 1 $210.33 $988.77 $197,543 $2,457 $14,389 Year 5 $267.22 $931.88 $186,108 $13,891 $71,946 Year 10 $360.44 $838.66 $167,371 $32,628 $143,891 Year 21 Year 30
- 11. 30-Year, $200,000 Loan - 6% Interest Rate - $1,199.10 Monthly Payment The Real TRUTH in Lending Principal Interest Balance Equity PAID Month 1 $199.10 $1,000 Month 2 $200.10 $999 Year 1 $210.33 $988.77 $197,543 $2,457 $14,389 Year 5 $267.22 $931.88 $186,108 $13,891 $71,946 Year 10 $360.44 $838.66 $167,371 $32,628 $143,891 Year 21 $696.23 $502.89 $99,877 $100,123 $302,173 Year 30
- 12. 30-Year, $200,000 Loan - 6% Interest Rate - $1,199.10 Monthly Payment The Real TRUTH in Lending Principal Interest Balance Equity PAID Month 1 $199.10 $1,000 Month 2 $200.10 $999 Year 1 $210.33 $988.77 $197,543 $2,457 $14,389 Year 5 $267.22 $931.88 $186,108 $13,891 $71,946 Year 10 $360.44 $838.66 $167,371 $32,628 $143,891 Year 21 $696.23 $502.89 $99,877 $100,123 $302,173 Year 30 $431,677
- 13. $200,000 $10,000 (not required to have large line of credit; this is an example) MORTGAGE FACILITATING ACCOUNT CHECKING SAVINGS CREDIT CARD REVOLVING DEBT HELOC “ FUNDS TRANSFER” MOVE MONEY FROM YOUR FACILITATING ACCT. TO PAY DOWN YOUR 1 ST MORTGAGE & OR TOTAL DEBT “ FUNDS TRANSFER” MOVE MONEY FROM YOUR FACILITATING ACCT. TO PAY DOWN YOUR 1 ST MORTGAGE & OR TOTAL DEBT
- 14. $195,000 $5,000 FUNDS TRANSFER MORTGAGE $5,000 Facilitating Account
- 15. Impact of a Funds Transfer $200,000.00 6% X 360 $431,677 $200,000.00 <5,000.00> $195,000 360 months Reduced to 337 months Saves the Borrower 23 months of payments Saves the Borrower $23,304.00 of future interest
- 16. MONTHLY BUDGET EXAMPLE $5,000 MONTHLY “NET” INCOME -$4,000 LIVING EXPENSES $1,000 DISCRETIONARY INCOME
- 26. LOAN AMOUNT: $200,000 $184,811 $184,752 BALANCE IN 1 YEAR: $197,543 Money Merge Account® program Conventional Program STARTING BALANCE $200,000 Balance in 1 year: 10.4 years $70,422 30 years $231,677 $200,000 Balance in 5.5 years: REPAYMENT TIME TOTAL INTEREST PAID TOTAL INTEREST SAVINGS: $167,219
Editor's Notes
- Utilizing the Money Merge Account program our example couple John and Rebecca will save $121,855 in interest. What could you do with that extra money. Take vacations, retire spend more time with family?
- For illustration purposes, lets say we have a $200,000 mortgage and a $40,000 line of credit. Don’t let the $40,000 amount concern you. With our software program, that dollar amount doesn’t matter, whether that line of credit is $10,000 or $200,000, the program works the same and will pay both the first mortgage and the line of credit off to zero in the same amount of time.
- Building block number one is what we call a Funds transfer . In this example, the software program is going to prompt us to borrow $5,000 from our ALOC and pay it to our first mortgage. But does that make any sense? Lets say that our Line of Credit charges 10%, and our primary mortgage has an interest rate of 5%. You’re probably asking, why on earth would I borrow money at 10% to pay down a debt at 5%? I know, it makes no sense, until you understand the paradigm shift.
- I want to go a little bit deeper. I want to view the Money Merge Account™ system with regard to using this concept of interest cancellation and how this can work for the consumer. In order to do this, we want to set up a monthly budget for John and Rebecca Jones. We will say that John and Rebecca Jones have $5,000 of monthly net income. The reason we stress monthly net is because you can’t spend your gross . See, we want to know what the client is doing today with little to no alteration with their current situation. What are they doing today? What can Money Merge Account program do for them tomorrow? We will define that John and Rebecca Jones have $4,000 in living expenses. And that would equate to everything they spend their money on . That would be considered expenses. This leaves John and Rebecca Jones with $1,000 of discretionary income, which we define as what is left over at the end of the month after all bills have been paid. So let’s take a look at how all this plays out with the concept of interest cancellation. Let’s look at the first month on the Money Merge Account program.
- Lets take the worst case scenario. We get started on the program, which costs $1,995. This is a one time fee for the software, there are no monthly fees, annual fees and there are no additional charges for new versions of the software as they become available. Where do most people get $1,995? They borrow it from their ALOC. You see we need a balance on the line of credit anyway in order for us to be able to deposit our income into the line of credit. We also want to get our $4,000 in monthly expenses out of the way, so we immediately write $4,000 in checks from our ALOC. So now we’re up side down $7,500. Aren’t you glad you met me? Don’t forget, we have our income of $5,000 coming in. Traditionally, where would we have deposited that money? Into our traditional checking account. Where are we going to deposit that money now? Into our ALOC. That drops our balance down to $2,500. If we had a 10% interest rate, 10% of $2,500 is $250. Divide that by 12 months, that equals $20.83 in finance charges. Month 2, we have a balance owing of $2,500, we pay our bills of $4,000, our new outstanding balance is $6,500. Our paycheck comes in for $5,000, that drops our balance to $1,500. Our finance charge is $12.50.
- Month 3, we have a balance owing of $1,500, our monthly expenses of $4,000, making our new balance $5,500. We deposit our paycheck of $5,000 into our ALOC. Our new balance now becomes $500. The software now optimizes our situation. Since we deposited a paycheck of $5,000, the bank would be using $4,500 of our money. We don’t want that. So in this example, the software prompts us to do a funds transfer of $3,675.77, it optimizes it to the penny. We now have a balance of $4,175.77. Our monthly interest charge is $34.80. Our total interest charge for the first three months is $68.13. By doing this funds transfer, we just cancelled $17,249 in interest! We just reduced our mortgage by and additional 18 months! Three months ago we had 360 months remaining. Now we only have 339 months remaining! Our principal payment jumped from $201.10, to $220.48. Remember, our principal payment was only increasing by one dollar each month. Every payment we make from now on will have $19.38 more, going towards principal. Our new mortgage balance is $195,723.
- Month 4, we do it all over again Notice that our balance is reducing each month by the amount of our discretionary income. In this case, its $1,000 per month. This month we have a finance charge of $26.46. Month 5, we do it again and we have a finance charge this month of $18.13.
- Month 6, we do it again and our new balance is $1,175.77. The software is tracking, “what’s coming in, what’s going out”. If we deposit another paycheck, the bank will be using our money instead of us using their money. We don’t want that so the software prompts us to do another funds transfer of $2,920.23. We have a new balance of $4,096. Our finance charge this month is $34.13. We just cancelled another $12,274 of mortgage interest! We reduced our mortgage by another 16 months! Our total finance charge for the first six months is $146.85. Total interest cancelled is $29,523! Our total months reduced from our mortgage is 37! In six months we have reduced our 30 year mortgage, 360 months, down to 323 months! We have taken over 3 years off our mortgage! The principal portion of our payment went from $222.69, to $238.41! We now have $15.72 more of every payment being applied to principal. In six months, we have reduced our mortgage by 37 months! Our new mortgage balance is down to $192,138.
- Month 7, we do it all over again an we have a finance charge of $25.80. Month 8, we incur a finance charge of $17.47.
- Month 9, we do it again and our balance comes down to $1,096. The software once again optimizes our cash flow, prompts us to do another funds transfer of $2,917.68. Our new balance is $4,003.68. Our finance charge is $33.36. We just cancelled another $11,155 of interest! We reduced our mortgage by another 14 months! Total interest charged for the first nine months is $223.48. In the first nine months, we have cancelled $40,678 of interest! And we have reduced our payments by 42 months! Under your conventional mortgage, you would have still had 351 payments left. With the Money Merge Account we have reduced that down to 309 months! The principal portion of our payment is now up to $256.59! Another $15.79 of each payment is being applied to principal! Our balance on our mortgage is now $188,502.
- Okay, lets continue on with month 10. We do it all over again and end up paying interest charge this month of $25.03. Month 11, we continue with the program and our finance charge for the month are $16.70.
- Month 12, now this is exciting. We do it again and our balance comes down to $1,003.68. The software optimizes our money. It knows if we deposit another paycheck the bank will be using almost $4,000 of our money. We do another funds transfer of $2,917.67, again, to the penny. The software is very precise. Our new balance is $3,921.35 with a finance charge of $32.68. We just cancelled another $10,184 dollars! Reducing our mortgage by another 14 months! So, at the end of 12 months, our total finance charges on our open ended line of credit is just $297.89. We have cancelled a total of $50,862 in closed end mortgage interest! We have reduced our mortgage payments by 53 months! That’s 4.5 years! We only have 295 payments remaining, instead of 348! Our principal jump has increased our principal portion of our payment by $75. 92! How much was our principal portion going up per month? One dollar! At the end of 12 months, we have paid our mortgage balance down to $184,811!
- Lets look at the Money Merge Account compared to our conventional mortgage. Our $200,000 original loan balance has been reduced in one year to $184,811. By paying our mortgage using conventional methods our balance after one year would have been $197,543. It would have taken 5.5 years to get the balance down to $184,000. At the end of 30 years, we would have paid $231,677 in total mortgage interest. Using the Money Merge Account, our home will be paid off in 10.4 years, and we have only paid $70,422 in combined interest charges between the first mortgage and the line of credit! We will have saved $167,219 in closed ended mortgage interest by utilizing the Money Merge Account software.
- This is the Money Merge Account™ Action Plan . This would be the default page or where all things start. This is things to be done. This is an outlay of an individual’s financial picture as they move through a month. In this particular scenario, we are dealing with John and Rebecca Jones with the $200,000 mortgage with the 6% interest, with the payment of $1,199. We’re dealing with the $5,000 of income, $4,000 of living expense, and $1,000 of discretionary income. And the software is reporting that if John and Rebecca put $5,000 into their vehicle, or their line of credit, in order to drive the Money Merge Account program, and they only spend $4,000 a month, they will pay off their line of credit and their mortgage by October 2017 in a total of 9.25 years . And in total combined interest between the mortgage and the line of credit, they will only spend $71,127.83 .The Money Merge Account program tells the client where money is coming from , where money is going to . This line item right here—what we call a funds transfer—is the teeth of the Money Merge Account program. We were discussing interest cancellation. I talked about how the program at different intervals will come online and it would direct the client to move money from one account to another account to cancel interest or to strategically pay off that account, to optimize a client’s money performance with relationship to their income, expenses, and discretionary income. In this particular case, the line item that has been generated by the Money Merge Account software is directing the client to send $7,149.76 from their line of credit to be paid to principal only on their primary mortgage to compress the balance on the primary mortgage, save themselves time and money, just as we saw on the $200,000 example. And basically trade the savings of closed-end interest for the small finance charge on the open-end line of credit. If we click here to Cashflow …
- Achieving your financial goals begins with eliminating your debts. Let the UFirst™ representative who introduced you to our powerful solution run a free analysis for you. Nothing will ever speak as loudly to you as your own numbers, your own situation. Allow us to show you that it’s your time for financial freedom. It is your time to get on top of your finances. It is your time to build and create wealth. It is your time! I want to thank you so much for joining me. Have a great day and enjoy the Money Merge Account™ program.