Why a “Money Merge Account”* makes sense in today’s economy

Why a “Money Merge Account”* Makes Sense in Today’s Economy

Posted on March 3, 2008
Filed Under mortgage |

This is a guest post by Doug Hutchinson. Doug is a United First Financial agent and offered to give his opinion on why you should at least look at a Money Merge Account. The following article is his own opinion and is in no way endorsed by United First Financial.

*Money Merge Account is a trademark for a patented, proprietary software program solely owned by United First Financial and my comments are not endorsed by United First Financial.

Robert Kiyosaki, author of “Rich Dad, Poor Dad, “Rich Dad’s Guide to Financial Freedom”, and other books, said this: “The reason that most people struggle financially is that they learn to work hard for money but never learn three things that are essential to earning the income and having the freedom they desire: 1. How to Use Leverage, 2. How to Create Passive or Residual Income, 3. How to Make Money and Make Money Work For You.”

Leverage: Having money in an investment portfolio that gives you a good return is using leverage. Having a mortgage isn’t.

How to Create Passive or Residual income: Again, investments do that, mortgages don’t. One of the best reasons for people to consider a Network Marketing Opportunity is that if you work at the business and build an organization, you can potentially leverage your efforts and create Residual Income.

How to Make Money and Make Money Work for You: Working is a way to make money, investing is a way to make money work for you. Having a mortgage isn’t.

It doesn’t matter if you are a $5.00/hr. clerk or a doctor or a corporate executive making $250,000.00/yr, if you are exchanging your time and talents for money, you can only earn if you are working.

Everyone who works for someone else is a slave to the clock. It tells them when to get up and go to work and when it’s time to leave work. And tomorrow they have to get up and do it all over again. In fact, many people do that 40-60 hours each week for 50 weeks a year for 20-40 years and still have to worry if they are going to have the health and the money to do the things they desire when they retire.

We are also slaves to our mortgages. We don’t have to be. Albert Einstein said: “The person who understands compound interest will earn it. The person who doesn’t will pay it.” A mortgage is a closed-end loan. A Home Equity Line of Credit is an open-end loan. What is the difference and why is that important?

Let’s look at them in the context of a “Money Merge Account”. With a closed-end loan you can only put money in and you must make at least the minimum payment. Closed-end loans have the interest loaded at the front and for the majority of its life; you pay more interest than principal. You cannot take money out. An open-end loan can work exactly like a checking account. Write checks, do online transfers, deposit money into it and take money out of it. Payments are applied whenever they come into the account. Interest is paid only on the average daily balance through the month and that can fluctuate constantly. That interest is sometimes called “simple interest”. Home Equity Lines of Credit, personal lines of credit, and credit cards are examples of open-end loans.

My mother grew up in the Great Depression and knew how to be frugal. She is one of the few people I know who consistently paid extra on the principal portion of a mortgage. If she had known about the Money Merge Account, she would have jumped on it! Why? Because she would see the same thing that the over 30,000 clients who have it do. (There are approximately 60 million mortgages in America. Approximately 45 million qualify for UFF’s program. UFF started business in October of 2006. Find out more at:United First Financial ) And that is by using the bank’s products, an open-end loan, and spending 15-20 minutes every month updating information (the MMA software only wants to know two things. How much money is coming in and how much is going out) is easier than trying to pinch pennies to pay a little extra on the principal.
This is more than just using your discretionary income, which is harder to come by all the time, it’s also using the bank’s money taken from a HELOC, with most of the interest accumulation avoided with your paychecks. That’s leverage!

What if, you were 40 years old, and through this program, you were able to pay a 30 year mortgage off in 10 years? And you took the money you were paying on the mortgage and the discretionary income involved with the MMA program and invested it, what might happen?

Cindy used a 30 year, $200,000.00 mortgage at 6% and a payment of $1199.10. in that example, the mortgage paid off in 10.4 years. Investing that money every month into an interest earning vehicle that gave you 6% ROI, after the remaining 19.6 years you would have a “nest egg” of $973,000.00. That is using leverage (your money working for you) and creating residual or passive income (interest). You didn’t have to go to work to earn it!

You have 2 options.
Option 1

Years to pay off mortgage - 10.4
Interest paid (includes HELOC) - $70,422.00
Interest saved - $167,219.00
Retirement account - $973,000.00
Pay off at age - 51
Pay/Save - $3500.00

Option 2

Years to pay off mortgage - 30
Interest paid (includes HELOC) - $231,677.00
Interest saved - $0
Retirement account - $0
Pay off at age - 70
Pay/Save - $1,140,219.00*
*Total of interest saved and retirement account

That seems to make sense to me. This is just an example and everyone’s situation is different. Not all people will qualify. For those who do, there is tremendous customer support. And, if the information that you originally give is correct, there is a money-back guarantee if the software doesn’t perform as initially shown.

American consumers need to investigate everything they can to reduce personal debt and have more income which can potentially give you more personal freedom and options for your future. There are other programs out there. The “Money Merge Account” is the only one that uses your current 1st Mortgage and a HELOC, fully integrated with a computer program which takes specific variables entered into complicated algorithms to instruct movement of funds in order to maximize the power of your money. There are books, financial planning software, refinance programs, and other products out there. None offer a program like “The Money Merge Account” from United First Financial.

Help keep me awake to write by buying me a cup of coffee! .

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Comments

3 Responses to “Why a “Money Merge Account”* Makes Sense in Today’s Economy”

Karan (1 comments.) on March 6th, 2008 12:43 pm

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Adam Smith on March 10th, 2008 10:33 am

The example Cindy used is directly from UFF’s marketing materials.

When a UFF “salesperson” presented the same example to me, I took the exact same numbers and assumptions, and guess what…

By doing it myself, with the same income, I would payoff the mortgage THREE MONTHS FASTER than UFF. Plus, I would have not spent $3500 on unnecessary software.
JoeTaxpayer (3 comments.) on April 30th, 2008 6:45 pm

From UFFs own example, the homeowner is behind a few hundred dollars with MMA after a year even without the $3500 fee. To be clear, if MMA account were free, I would avoid it. The do it yourself method comes out ahead. I could go on, but people need to use some common sense.
Joe