A Tax Deductible Mortgage Plan is a financial strategy with two components:
The Mortgage Plan converts Regular Debt into a tax deductible Investment Line of Credit (ILOC) that generates Tax Refunds.
The Income Plan uses leverage investment techniques to accelerate financial benefits.
By integrating The Income Plan
- Your mortgage may be paid off even Sooner;
- Tax Refunds are potentially Greater; and
- Your Investment Portfolio Builds Faster!
It’s that simple!
The Mortgage Plan
Steve and Jill Jones are 38 with a marginal tax rate of 39%. They purchased their last home for $500,000 and they required a $300,000 mortgage at Closing.
At age 63, The Mortgage Plan will provide Steve & Jill:
- $48,000 in Tax Savings
- Mortgage Paid 2.5 Years Sooner
- Investment Portfolio of $383,182
Steve and Jill will need to restructure their mortgage payments to achieve these financial results!
The Mortgage Plan Disclosures
- These calculations and results are for illustrative purposes only. Actual performance will vary and cannot be guaranteed.
- The actual investment growth rate, and annual sequence of return rates will alter the results of this strategy. Lower investment growth
rates reduce the effectiveness of this strategy.
- Mortgage rates, Investment Line Of Credit rates, and Income Tax rates may vary during the plan and will impact the results of this strategy.
- It takes time to convert Regular Debt to Tax Deductible Debt. You cannot tax deduct interest costs associated with Regular Debt.
- The mortgage is deemed “Paid” when the Regular Debt is fully converted to the Investment Line of Credit and the investment portfolio is equal to the initial mortgage balance.
The Income Plan
Steve and Jill are concerned that their Investment Portfolio may not be large enough to guarantee a comfortable retirement. They decide to accelerate their mortgage strategy with The Income Plan .
On advice of their Financial Advisor, they borrowed to invest in a tax efficient Fund which pays monthly distributions of $1,340. These cash distributions are reinvested after paying the interest on the investment loan.
By integrating The Income Plan into The Mortgage Plan. Steve and Jill will accelerate their financial benefits and realize:
- 25 Year Mortgage Paid in 11 years
- Investment Portfolio of $1,645,183
Steve and Jill will need need to restructure their mortgage payments to achieve these financial results!