No investment comes close to a mortgage accelerator for building net worth and financial security. Homeowners are not told this by the financial community, but instead, they are advised to buy a balanced portfolio of stocks. This lack of information has led to the tragedy of why so many people are near-broke when they retire! Sadly, Americans have been uninformed, or, worse yet, misinformed, about how to grow their savings nest egg . Why? Two main reasons:
- Because in America, people don’t receive a basic financial education in school.
- When they begin working, Americans are bombarded by ads from the financial community about the importance of investing for retirement. The message seems so right, but what is unsaid is that the timing is wrong, especially for homeowners with a mortgage.
How has this played out? Most Americans don’t have enough to retire – not nearly enough. The average American has about $60,000 in savings at age 65*. Folks, that’s a rainy day fund, not nearly enough to live through years of retirement. The lack of basic financial education compounded by the (supposed good) advice of the financial community has resulted in financial ruin for most people nearing or at retirement age. The average American is totally unprepared. But the financial community, those whose heavily advertised message can be seen everywhere, is doing just fine, as everyone knows.
To demonstrate how much faster a mortgage accelerator builds net worth, look at the chart below, showing actual results comparing a mortgage accelerator to an IRA or 401K . The chart shows the increase in net worth for $3,000 invested annually at a typical 6% rate of return.
Mortgage Magic System Builds Net Worth Fast
No other financial plan can grow net worth faster than one that includes a mortgage accelerator.
People in other countries are given a basic education in household finances in their school years. They know the long-term effects of compound interest and the time value of money combined with the time value of their future income. Second, they know that it is net worth that determines the ultimate ability to retire. Knowing this, they prioritize growing their net worth early in life. As a result, they don’t follow the same steps as do Americans, and their actions provide them with much more money than their American counterparts – even with the same incomes – due to mortgage acceleration.
Not surprisingly, mortgage acceleration is a common practice in other countries. How common? From 1/3 to 1/2 of all homeowners in the UK and Australia use it, and its use is growing throughout Europe and Asia. It’s because mortgage acceleration is the most effective way for homeowners to quickly increase their net worth.
A simple example will illustrate this. An American homeowner with a $200,000 mortgage contributes $3,000 to her retirement account. After a year, her account earned $150** (before taxes), but she paid $9,700 in mortgage interest. . In contrast, her European counterpart applies $3,000 to accelerate her mortgage. As a result, she has increased her net worth by $9,900***! And this is a net (after-tax) amount.
Everyone wants financial security for the future. Money to live, to travel, to enjoy “the Golden Years”. How to get it? How to have a richer, better retirement? That’s the big question. Unfortunately, more and more people are finding that, after a lifetime of work, of paying bills, and just barely getting by, without spending on luxuries, they still can’t afford a good retirement. In fact, fewer and fewer people find that they can’t even afford to retire at all!
for most homeowners, a plan to simply invest early for retirement doesn’t make it happen – regardless of their investment choices! The banks and brokerage companies seem to be doing all right, but the average person is definitely not. And, this is so despite “investing” as they have been told they must do. Clearly, the advice people have been given is not having the desired effect. Is there an answer?
YES! The Mortgage Magic System. It is a financial plan that grows net worth quickly by utilizing the time value of money and the compound interest formula to favor homeowners instead of lenders. And, best of all, results are guaranteed if you simply stick with it.
* Employee Benefit Research Institute