the road to wealth version to send to clients adobe
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STRATEGIESSTRATEGIES ‐ON THE ROAD TO WEALTH
DARREN J. CART, CPAJ ,PARTNER – GOING, SEBASTIEN, FISHER & LEBOUEF, APAC
(337)942‐[email protected]@g g p
What is the definition of wealth?
AnswerAnswer
The property of having more The property of having more than an adequate supply.
Don’t we all strive towards having more than an adequate having more than an adequate supply?
Although everyone has a different definition of wealth different definition of wealth, aren’t we all striving to become wealthy?
LET’S THINK LIKE THE WEALTHY.
EVER HEARD THE PHRASE “THE RICH JUST KEEP THE RICH JUST KEEP GETTING RICHER”?
REASONSREASONSIS IT LUCK?
ARE THEY SMARTER THAN EVERYONE ELSE?
DO THEY DRINK FROM A SPECIAL FOUNTAIN?FOUNTAIN?
THE ANSWERTHE ANSWERIT IS BECAUSE THEY HAVE CPA’S AND CONSULTANTS JUST LIKE MYSELF THAT MAKE SURE THEY ARE USING THE PROPER WEALTHBUILDING STRATEGIES.
WEALTH BUILDING STRATEGIESSTRATEGIES
INTEREST CANCELLATIONRULE OF 72THE POWER OF TAX DEFERRALINTEREST ARBITRAGEINTEREST ARBITRAGETIME VALUE OF MONEYOPM = OTHER PEOPLE’S MONEYPAY YOURSELF FIRSTNO STAGNANT MONEY
LET’S THINK LIKE THE WEALTHY.
Where Does the Road to Wealth Start for my Clients?Wealth Start for my Clients?
It starts by taking control of their finances with a plan of action towards debt reduction.
WHY DEBT REDUCTION?
THE RULES OF MONEYTHE RULES OF MONEYRULE 40 – GETTING WEALTHY
“PAY OFF YOUR LOANS AND DEBT AS A PRIORITY.”
RICHARD TEMPLAR. THE RULES OF MONEY
WE NEED A PLAN OF ACTION TO FOLLOW.
WHY?
The Top Ten Distinctions Between Millionaires and the Middle ClassMillionaires and the Middle Class
Per Distinction # 10
“The wealthy generally have a long term plan normally a decade at a ti ” time.”
Keith Cameron Smith. The Top Ten Distinctions Between Millionaires and the Middle Class
DEBT IS ESSENTIALDEBT IS ESSENTIAL
GOOD DEBT = BUSINESS LOANBAD DEBTS = 30 YEAR MORTGAGE & CONSUMER LOANS
KNOW THE DIFFERENCE!
ATTACK BAD DEBT!ATTACK BAD DEBT!
EXAMPLES OFBAD DEBTBAD DEBT
30 YEAR MORTGAGE
CONSUMER DEBT
DOES THIS LOOK LIKE 6% INTEREST TO YOU?
DOES THIS LOOK LIKE A QUICK WAY TO GET OUT OF DEBT?
IS THERE A SMARTER WAY?
LET’S THINK LIKE THE WEALTHY.
Empowering QuestionEmpowering Question
A company came along and asked, “What if we developed a product that used these same concepts to build used these same concepts to build wealth for our clients by getting them out of debt?”
WEALTH BUILDING STRATEGIESSTRATEGIES
INTEREST CANCELLATIONRULE OF RULE OF 72THE POWER OF TAX DEFERRALINTEREST ARBITRAGEINTEREST ARBITRAGETIME VALUE OF MONEYOPM = OTHER PEOPLE’S MONEYPAY YOURSELF FIRSTNO STAGNANT MONEY
ObservationObservationMost consumers keep most of their money in low‐interest checking and y gsavings to keep enough money available to cover expenses.
If they could send extra money toward principal, they could pay off p p , y p y fftheir debts much faster and pay much less interest in total.
Company askedCompany asked
“What if we develop a program that ll d li i ll allowed our clients to strategically
position their income toward their debts while keeping their money accessible thereby having little or no change to their standard of living?”
THE RESULTSU
THE MONEY MERGE ACCOUNTTMPROGRAM!
FACTFACT
Today’s consumers have multiple Today s consumers have multiple debts.
TYPICAL CLIENT – JOHN AND REBECCA JONES
‐DEBTS (EXCLUDING VEHICLE)30 YEAR MORTGAGE FOR $200,000 @ 6.00%3 , @INTERESTCREDIT CARD DEBT OF $6,000 @ 12.00%INTEREST
O O %STUDENT LOAN DEBT OF $7,000 @ 7.00%INTEREST
INCOME‐INCOMEJOHN ‐ $30,000 (AFTER TAXES)REBECCA ‐ $30,000 (AFTER TAXES)
‐EQUITY IN HOME = $30,000
STRATEGY OF THE MONEY MERGE CONCEPT
NEW CHECKING & SAVINGS
DEBTS(MORTGAGEHELOC (MORTGAGE, CREDIT CARD,
ETC.)
HELOC
NO STAGNANT MONEY-SAFETY NET
AVAILABLE BALANCE =$30,000
Without Money Merge StrategyStrategy
With discretionary income of $400, y $4 ,most people would feel comfortable sending what amount towards principal?principal?
Maybe $100?
Using Money Merge StrategyStrategy
Send $100 ‐ No
Send $400 – No
You may send $5,000
EVER USED AN INTEREST CANCELLATION ACCOUNT?
EVER BORROWED MONEY ON A CREDIT CARD AND PAID BACK THE CREDIT CARD AND PAID BACK THE BALANCE IN FULL BEFORE ACCRUING INTEREST?
YOU’VE JUST USED AN INTERESTCANCELLATION ACCOUNT.
You use this interest free money to:to:
‐ Purchase groceries‐ Purchase groceries‐ Purchase fuelFor entertainment‐ For entertainment
Can we use an interest cancellation account to pay off cancellation account to pay off debt?
LET’S THINK LIKE THE WEALTHY.
Interest CancellationInterest CancellationBy depositing John and Rebecca’s income of $2 308 we just paid off a income of $2,308, we just paid off a portion of the HELOC using otherwise stagnant money.
Since the bank cannot charge interest to you on the $2,308 for the full month, you y $ ,3 , yjust used the bank’s money (OPM) interest free to pay off a portion of your debt!debt!
PUT YOUR MONEY TO WORK FOR YOUWORK FOR YOU
OVER A 30 YEAR PERIOD, JOHN AND REBECCA JONES WILL DEPOSIT $1,800,240 INTO THEIR CHECKING ACCOUNT AT WHICH TIMES WOULD OTHERWISE BE STAGNANT MONEY.
LET’S HAVE EVERY DOLLAR YOU EARN WORK FOR YOU TO PAY OFF EARN WORK FOR YOU TO PAY OFF DEBT!
LET’S HAVE A DEBT MANAGER WORKING FOR YOU 24 HOURS A DAY SEVEN DAYS A WEEK.
LET’S MOVE AN EXACT AMOUNT OF LET S MOVE AN EXACT AMOUNT OF MONEY AT THE MOST OPPORTUNETIMES TO GET YOU OUT OF DEBT AS SOON AS POSSIBLESOON AS POSSIBLE.
WHAT’S THE RESULT?
Remember John & Rebecca Jones
30 Year mortgage of $200,000
Credit card debt of $6,000
Student loan balance of $7 000Student loan balance of $7,000
BY LETTING THE SOFTWARE GUIDE THEM ……….
BY TRANSFERRING MONEY ON‐LINE AT THE CORRECT TIMES AND SPENDING 10 MINUTES PER MONTH UPDATING THE SOFTWARE………….
John & Rebecca Jones just paid off a 30 year mortgage and all other debt 3 y g gin 13.7 years and saved $135,028 of interest.
WEALTH ACCUMULATIONWEALTH ACCUMULATION
ONCE DEBT FREE, LET’S BEGIN INVESTING THIS NOW AVAILABLE INVESTING THIS NOW AVAILABLE MONEY AND ACCUMULATE OVER $480,000 BY THE END OF 30 YEARS.
Plan on moving in 5‐7 years?
Take the equity you've built up and put it on the new home and continue using the Money Merge Programtm to build wealth.
TWIN BROTHERS ‐ 30 YEARS OLD MAKING THE EXACT SAME INCOMEEXACT SAME INCOME
JOHN’S TWIN BROTHER
JOHN JONES USES MMABROTHER –
BOB
USES MMA
HOME PAID OFF BY AGE OF 60
HOME PAID OFF BY AGE OF 42 AND HAS 42 AND HAS NEST EGG OF OVER $480,000 AT AGE 60AT AGE 60
Would you want to be Bob?
Or John & Rebecca Jones?