I Think You all Have The Idea

I can't stress enough how valuable to you it is to buy a home to start your financial freedom.
It may seem like a huge step, or it may be more of a commitment than you were looking for
but the truth is, that if your reading this, there is something out there in your price range, so
go get it.

In the last article I mentioned Hedge fund Investing. This article is going to be based more
on what is known as an "Equity Index universal Life Policy" or E.I.U.L. The basics of
an EIUL is exactly what I have been discussing somewhat in every article, MANAGING YOUR
EQUITY. Let me give you a home equity scenario. Let's say that you are 3 years into a 30 year
fix on your home obviously leaving you 27 years until your home is paid off. Let's say you purchased this home for $300,000. in that 3 years I hate to tell you that you have only paid
down less than $10,000 to you principal balance. Ask how that is possible when your payments
are $2800.00 a month? You thought you have paid close to 75-80K toward your principal balance after all, you have paid over $100K in payments? Not true and this my friend is banking
lesson 101. This simple principal banker's call "Those Who Do Not Understand Interest Are Paying It." Check your "Truth In Lending" statement that your bank gives you every time
you borrow money. There is good news though. "Appreciation," your home gains value as it just sits there and does nothing. So let's say your appreciation is about 6% annually in an average
suburban market. After 3 years your $300,00 home is now worth roughly $360K. Would you
consider an interest only (To keep your payments the Same) cash out refinance. You can roll
that $60,000 into the EIUL and you have just diversified your investment portfolio. The mechanics of the EIUL are simple. It is a type of insurance that provides permanent protection,
has an unbundled premium structure, and has a flexible death benefit. Premium payments can be made according to the schedule in the policy, including "Stop and Go" and lump-sum unscheduled premium deposits. You can get into an EIUL that maintains a "Cash Value" and a tax free "Death Benefit." So why use your home equity? Because the cash value is invested and guaranteed by the insurance companies, of course there are caps and floors on how much they
will earn you but common companies like "New York Life" are paying 9% annually. Now are you
seeing the value? You just gained an extra 3% a year on your equity. Please contact me for more information on the EIUL, how it works and if you qualify for it. Every individual is different and this may not be the best deal for your specific goal. But I guarantee you what ever that goal may
be, I have an alternative income source that will help leverage your equity so your not paying back $730,000 on a $300,000 loan amount. Don't forget every time you pull cash out, you get
a higher tax write off because your loan amount goes up.