Most financial consultants and advisors will tell you that a risk free investment strategy does not exist. Well I am a financial consultant and I am going to show you that it does exist.
Most homeowners do not think of their house as a risk free investment because it takes 30 years to pay it off and they will normally spend on a $200,000 mortgage at 6%, $431,676.38 plus property tax, plus insurance and in ten years we will only pay off $32,628.55 of the $200,000 mortgage.
If you could pay off the entire mortgage in about 7 to 12 years then it becomes an investment because in any investment time is critical.
If you would try to duplicate increasing your net worth $200,000 in 12 years it would require monthly payments of $1000 above your monthly expenses into an investment that returned 5 to 8 % and the return required would depend on your tax bracket because you would have to pay taxes on your gain.
The Risk Free Investment Strategy allows you to not have to increase your monthly cash flow and it allows you to pay off your mortgage plus all your debt. This strategy is difficult to understand because it looks too good to be true and because you are paying off your mortgage in 7 to 12 years. The variables that come into play are your total house hold income, your total loan, how far into the loan are you, your total discretionary income, your credit score and can you follow directions.
The basics of the program are to periodically pay lump sums of money towards your mortgage that will decrease your mortgage, decreasing the number of payments each time a lump sum is added to the principal.
The trick is understanding the dynamics of where the lump sums are coming from.
There are several places we can borrow money but this is not critical in understanding the process.. The amount that we can borrow will depend on the financial integrity of the borrower. Normally when we borrow money we have to pay interest on the money we borrow. The only requirement of the borrowed money is that the account must have a credit card / ATM / checking acount connected to it with a variable rate that adjusts daily to the amount owed and the entire family’s income is deposited into this account on payday. This will defer the cost of much of the money being borrowed. Because the account is not a savings account we cannot put in more money into the account then the amount that is owed..
Normally a checking account holds money but has no monetary value. In this strategy it defers the interest of the loan.
A software program was devised to predict when the money going into the account would go positive and decides when another lump sump amount should be paid towards the mortgage
Algorithms in the software program optimize the whole process and let you see a head of time how long it will take for you to personally pay off your mortgage and what payments to make and when. Since a family’s entire income is deposited into the account on payday the cost of the use of the loan decreases substantially. Additionally new scenarios can be added to the program that allows you to predict earlier pay off dates. For more Information
