Money%20Merge%20Account

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Money Merge Account

• (MMA)

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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

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200,000 Principal Balance 6 Interest
Rate 1,199.10 Monthly Payment
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
431,677
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Checking
ALOC Advanced Line Of Credit Checking Savings Cr
edit Cards Revolving Debt 2nd Mortgage MMA
Software
Savings
Credit Cards
Revolving Debt
2nd Mortgage
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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

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• 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
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Australians pay 100,000 - 150,000 less in
interest on their mortgages than do we Americans.
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200,000
Checking 5,000
Mortgage
Savings 3,000
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3,000
197,000
Checking 5,000
Mortgage Savings
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3,000
5,000
192,000
Mortgage Savings Checking
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200,000
40,000
ALOC Checking Savings Credit Card Revolving
debt 2nd mortgage MMA Software
Mortgage
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195,000
Funds Transfer borrow money from your ALOC to
pay down your 1st mortgage.
5,000 Funds Transfer
Mortgage
ALOC
5,000
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195,000

• - 5,000 Funds Transfer
• 5,000 Pay Check
• 0

Mortgage
ALOC
0
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Money Merge Account (MMA)

• 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

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• Sample Family
• 5,000 Monthly income
• -4,000 Living expense (mortgage, car payment)
• 1,000 Discretionary income

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200,000
40,000
Mortgage
ALOC
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• 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
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• Month 3 1,500
• 4,000 Expenses
• 5,500
• 5,000 Income
• 500
• 3,675.77 Funds transfer
• 4,175.77 Average monthly balance

Reduced mortgage by 18 months
3 month total 68.13
34.80
Interest Cancellation 17,249
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
220.48 201.10 19.38

Principal Jump
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• Month 4 4,175.77
• 4,000 Expenses
• 8,175.77
• 5,000 Income
• 3,175.77 Average Monthly balance
• Month 5 4,000 Expenses
• 7,175.77
• 5,000 Income
• 2,175.77

26.46
18.13
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• Month 6 2,175.77
• 4,000 Expenses
• 6,175.77
• 5,000 Income
• 1,175.77
• 2,920.23 Funds transfer
• 4,096 Average monthly balance

6 month total Reduced mortgage by 31 months
Reduced mortgage by 16 months
6 month total 146.85
34.13
Interest Cancellation 12,274
6 month total Interest Cancellation 29,523
Principal Interest Balance 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
238.41 222.69 15.72

Principal Jump
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• Month 7 4,096
• 4,000 Expenses
• 8,096
• 5,000 Income
• 3,096 Average Monthly balance
• Month 8 4,000 Expenses
• 7,096
• 5,000 Income
• 2,096

25.80
17.47
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• Month 9 2,096
• 4,000 Expenses
• 6,096
• 5,000 Income
• 1,096
• 2,917.68 Funds transfer
• 4,003.68 Average monthly balance

9 month total Reduced mortgage by 42 months
Reduced mortgage by 14 months
9 month total 223.48
33.36
Interest Cancellation 11,155
9 month total Interest Cancellation 40,678
Principal Interest Balance 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
256.59 240.80 15.79

Principal Jump
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• Month 10 4,003.68
• 4,000 Expenses
• 8,003.68
• 5,000 Income
• 3,003.68 Average Monthly balance
• Month 11 4,000 Expenses
• 7,003.68
• 5,000 Income
• 2,003.68

25.03
16.70
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• Month 12 2,003.68
• 4,000 Expenses
• 6,003.68
• 5,000 Income
• 1,003.68
• 2,917.67 Funds transfer
• 3,921.35 Average monthly balance

12 month total Reduced mortgage by 53 months
Reduced mortgage by 14 months
12 month total 297.89
32.68
12 month total Interest Cancellation 50,862
Interest Cancellation 10,184
Principal Interest Balance 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
275.04 199.10 75.94

Principal Jump
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MMA Program Conventional Program
Starting balance 200,000
Balance in 1 year


200,000
Balance in 5.5 years
Balance in 1 year 197,543
184,811
184,752
10.4 years
70,422
30 years
231,677
Repayment time
Total interest paid
Total interest savings 167,219
Loan amount 200,000
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• Money works
• 24 hours a day
• 7 days a week
• 365 days a year
• It doesnt take vacations
• It doesnt 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?

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• Utilities
• Food
• Clothing
• Transportation
• Entertainment

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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
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True Cost How much does that item really cost
me over time
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Money Merge Account (MMA)

• 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

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Purchase of an automobile - Should I make
monthly payments (4 interest rate)? OR - Should
I write a check from ALOC (8.6 interest rate)?
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Option 1 Finance the car at 4 interest rate
Borrow 25,000 at 4 for 5 years Payment of 460
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Option 2 Pay cash for the car using funds from
the ALOC
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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 dont pay 8.6 interest because
  we are using the ALOC as an interest cancellation
  account. Our effective interest rate is much
  lower!

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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

10.4 19.6 30.0 years
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15 - 25 ahead of written guaranteed pay off
date - because the proposal is a
conservative projection - because of
the Report Section (people budget more)
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Financial Optometry Report

• Option 1 Option 2
• Years to pay off mortgage 10.4
  30
• Effective interest rate 2.085
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• 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 youre
  doing?

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