Money Merge Account

Money Merge Account

(MMA)

How can I pay my home off early?

Conventional Banking• Refinance to a lower interest rate• Apply additional money to each payment• Bi-weekly payment

Money Merge Account system• No refinancing necessary of your 1st mortgage• No alteration to your current standard of living

Principal Interest Balance Equity Paid

Month 1

Month 2

Year 1

Year 5

Year 10

Year 21

Year 30

$199.10 $1,000.00

$200.10 $999.00

$210.33 $988.77 $197,543 $2,457 $14,389

$267.22 $931.88 $186,108 $13,891 $71,946

$360.44 $838.66 $167,371 $32,628 $143,891

$696.23 $502.89 $99,877 $100,123 $302,173

$200,000 Principal Balance6% Interest Rate

$1,199.10 Monthly Payment

$431,677

ALOCAdvanced Line Of Credit

CheckingSavings

Credit CardsRevolving Debt

2nd MortgageMMA Software

Checking

Savings

Credit Cards

Revolving Debt

2nd Mortgage

Money Merge Account (MMA)

ALOC Functionality• Becomes your primary checking account• Deposit all of your income into ALOC• Pay all your bills from the ALOC

Optimum Performance of ALOC• Deposit the maximum amount of money into

the Advanced Line of Credit• Keep it in there as long as possible

If you have any kind of debt, you should NOT have your money stagnating in a checking or savings account!

Checking Savings

Create an

Interest Cancellation Account

Australians pay $100,000 - $150,000 less in interest on their mortgages

than do we Americans.

$200,000

$40,000

Mo

rtg

age

ALOC

Checking

Savings

Credit Card

Revolving debt

2nd mortgage

MMA Software

$195,000

$5,000 Funds Transfer

Mo

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age

$5,000

ALOC

Funds Transfer: borrow money from your ALOC to pay down your 1st mortgage.

$195,000

Mo

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age

$ 0

ALOC

- $5,000 Funds Transfer

+ $5,000 Pay Check

$ 0


Funds Transfers:

• Every 2 to 6 months

• As you pay the ALOC down, when the balance is almost zeroed out, the software will optimize when to do another funds transfer

How we pay the ALOC balance down:

• Using a portion of your discretionary income

Sample Family

$5,000 Monthly income-$4,000 Living expense (mortgage, car payment)

$1,000 Discretionary income

$200,000

$40,000

Mo

rtg

age

ALOC

Month 1 $3,500 MMA investment

$4,000 Expenses

$7,500

$5,000 Income

$2,500 Average Monthly balance

Month 2 $4,000 Expenses

$6,500

$5,000 Income

$1,500

$20.83

$12.50

Month 3 $1,500

$4,000 Expenses

$5,500

$5,000 Income

$ 500

$3,675.77 Funds transfer

$4,175.77 Average monthly balance$34.80

Interest Cancellation

$17,249

Reduced mortgage by18 months

Principal Interest Balance

Remaining

Payments

Month 1 199.10 1,000.00 199,800.90 359

Month 2 200.10 999.00 199,600.80 358

Month 3 201.10 998.00 195,723.93 339

Month 4 220.48 978.62 195,503.45 338

Month 5

`̀Principal Jump

3 month total

$68.13

$220.48

$201.10

$ 19.38

Month 4 $4,175.77

$4,000 Expenses

$8,175.77

$5,000 Income

$3,175.77 Average Monthly balance


$7,175.77

$5,000 Income

$2,175.77

$26.46

$18.13

Month 6 $2,175.77

$4,000 Expenses

$6,175.77

$5,000 Income

$1,175.77


$4,096 Average monthly balance$34.13


$12,274

Reduced mortgage by

16 months


Remaining

Payments

Month 4 220.48 978.62 195,503.45 338

Month 5 221.58 977.52 195,281.87 337

Month 6 222.69 976.41 192,138.94 323

Month 7 238.41 960.69 191,900.53 322

Month 8

`̀Principal Jump

6 month total

$146.85

$238.41

$222.69

$ 15.72

6 month total


$29,523

6 month total

Reduced mortgage by

31 months

Month 7 $4,096

$4,000 Expenses

$8,096

$5,000 Income

$3,096 Average Monthly balance


$7,096

$5,000 Income

$2,096

$25.80

$17.47

Month 9 $2,096

$4,000 Expenses

$6,096

$5,000 Income

$1,096




$11,155

Reduced mortgage by

14 months


Remaining

Payments

Month 7 238.41 960.69 191,900.53 322

Month 8 239.60 959.50 191,660.93 321

Month 9 240.80 958.30 188,502.45 309

Month 10 256.59 942.51 188,245.86 308

Month 11

`̀Principal Jump

9 month total

$223.48

$256.59

$240.80

$ 15.79

9 month total


$40,678

9 month total

Reduced mortgage by

42 months

Month 10 $4,003.68

$4,000 Expenses

$8,003.68

$5,000 Income

$3,003.68 Average Monthly balance


$7,003.68

$5,000 Income

$2,003.68

$25.03

$16.70

Month 12 $2,003.68

$4,000 Expenses

$6,003.68

$5,000 Income

$1,003.68




$ 10,184

Reduced mortgage by

14 months


Remaining

Payments

Month 10 256.59 942.51 188,245.86 308

Month 11 257.87 941.23 187,987.99 307

Month 12 259.16 939.94 184.811.16 295

Month 13 275.04 924.06 184,536.12 294

Month 14

`̀Principal Jump

12 month total

$297.89

$275.04

$199.10

$ 75.94

12 month total


$50,862

12 month total

Reduced mortgage by

53 months

Loan amount: $200,000

MMA 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

$184,811 $184,752Balance in 1 year:

$197,543

Money works • 24 hours a day• 7 days a week • 365 days a year• It doesn’t take vacations• It doesn’t call in sick• It just works and works and works!

Do you have your money working for you?

~ or ~

Do you have your money working for the bank?

•Utilities•Food•Clothing•Transportation•Entertainment

Funds Transfers How much… - If you transfer too much,

interest charges will eat you up - If you transfer too little,

not enough principal increase - Dollar amounts are different every time How often… - Frequency varies every time

True Cost

How much does that item really cost me over time……


Web site• Does NOT move money• Does NOT pay bills• Functions as an account register

– Wants to know how much money is coming in

– Wants to know how much money is going out

• Tracks your monthly budget• 10 minutes per month to update• Continuous customer support

Purchase of an automobile - Should I make monthly payments (4% interest rate)?OR - Should I write a check from ALOC (8.6% interest rate)?

Borrow $25,000 at 4% for 5 years

Payment of $460

Option #1 Finance the car at 4% interest rateOption #1 Finance the car at 4% interest rate

Option #2 Pay cash for the car using funds from the ALOCOption #2 Pay cash for the car using funds from the ALOC

Comparison

Option #1 Finance the car Option #2 Pay cash using the ALOC

14.75 years to pay off 12.33 years to pay off

Lien on the car Own the car outright

**Even though the line of credit has an 8.6% interest rate we don’t pay 8.6% interest because we are using the ALOC as an interest cancellation account. Our effective interest rate is much lower!

Create A Retirement Nest Egg

• Your home is PAID OFF in 10.4 years• For the remainder of the 19.6 year mortgage• $1,199.10 per month• $1,000.00 discretionary income

6% 8% 10%

$973,000 $1,231,000 $1,575,000

10.419.630.0 years

15% - 25% ahead of written guaranteed pay off date - because the proposal is a conservative projection - because of the Report Section (people budget more)

Financial Optometry Report Option 1 Option 2

Years to pay off mortgage 10.4 30

Effective interest rate 2.085% 6%

Interest paid $70,422 $231,677

Interest saved $167,219 $0

Retirement account $1,000,000 $0

Pay off at age 50 yrs old 70 yrs old

Move forward with MMA, or keep doing what you’re doing?

Get your

Free

Software Analysis

Money Merge Account

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