FAQ
Get answers to some of the most frequently asked questions about the Mortgage Magic System. If you don’t see the answer to what you’re looking for, please contact us and we will get back to you promptly. Click each bold-faced topic to see or collapse the answers.
Before getting to the faq, we want to let readers know that the Mortgage Magic System is a complete wealth-building system that allows people of average incomes to amass a million-dollar retirement fund based on a long term plan that reduces investment risk, includes insurance protection, and shields retirement fund withdrawals from reduction caused by eventual taxation. It includes a mortgage accelerator, but is far more comprehensive. There is nothing like the Mortgage Magic System.
We are experts at this, so let's first dis-spell any misconceptions. Let's start by saying what it is NOT. It is NOT making extra mortgage payments. It is NOT a bi-weekly payment. It is NOT adding a little extra to your monthly payment. It has nothing to do with paying less than the mortgage requires. It is NOT illegal. It does NOT require the bank's permission.
A mortgage accelerator is based on the formula that banks use to calculate mortgage interest. That formula provides for monthly payments that are made up of principal and interest. The monthly amount is always constant. The bank earns interest on the outstanding monthly loan balance, and whatever is left over is credited to the loan account as principal reduction.
Here, then, is the true definition of a mortgage accelerator: A mortgage accelerator reduces the monthly loan balance, and therefore the monthly interest due. By definition of the mortgage formula, since less interest is due, more of the monthly payment must be applied toward principal, and therefore principal reduction is accelerated.
Expressed mathematically: amount applied to principal = monthly payment - monthly interest due
Our accelerator accomplishes this by allowing your income to temporarily offset your mortgage balance, until needed to pay bills. The effect is similar to sweeping your checking balance into your mortgage. The result is that less interest is due each month. When you send in your monthly mortgage payment, the bank must apply more toward principal.
This is how our mortgage accelerator enables very fast reduction of principle.
Users reach financial security using what we call TGIF :
- Timing to grow net worth its maximum potential.
- Guaranteed Investment Performance for consistent growth of net worth
- Insurance to protect against financial loss and taxation of retirement assets
- Financial Plan roadmap to a targeted goal
Not paying off the mortgage is the single biggest reason why most people can NEVER retire. Instead of making mortgage reduction a priority, they save for retirement, and that's a big mistake! Here's why: saving for retirement while having a big mortgage costs more in mortgage interest than you can earn in a retirement account. The result is that net worth never grows large enough to retire on.
Mortgage interest cost reduction is the most overlooked part of retirement planning. You cannot grow your net worth if your retirement account earns $1,000 and your mortgage costs $15,000 in annual interest. And that's what happens to most people - year after year. Do you want to retire with more money? If your answer is "yes", use the Mortgage Magic System.
Banks and mortgage lenders naturally don't want you to know about mortgage acceleration, much less use it. These firms make their money by transferring risk to you, by selling you stocks, investment products, and loans. A mortgage accelerator not only reduces risk, but also provides greater investment return. Mortgage acceleration has been used around the world for over 15 years. In the United States, people are just becoming aware of it. Stock investments are included in the Mortgage Magic System (see next question), but only at the right time. Now that you know the facts of mortgage acceleration, see if anything matches it - nothing comes close.
Stocks and other investments should be part of your retirement plan. The issue is "timing". There is a "right" time to purchase stocks, bonds, and similar investments for your retirement portfolio. That time is NOT when you have a large mortgage.
When your mortgage is paid down, these investments can be made relatively safely. We say relatively because investments, particularly stock investments (equities), are inherently risky. It is unwise to take on the risk of stock ownership when you have the overhanging risk of a mortgage. In addition, if you have a 6% mortgage for example, it is unwise to gamble that you will "beat" 6% (after tax) in the stock market.
Even more important is that mortgage acceleration can easily increase your net worth by as much as 600% (see next question) - no other investment can do that. And this performance is guaranteed by your mortgage note. Plus, it reduces long-term financial risk. So, we advise stocks, but only after the mortgage is paid down. Using the Mortgage Magic System, it will be amortized fast.
Nothing comes close to how quickly net worth grows using the Mortgage Magic System. The chart shows its performance compared to other investements. One look is worth a thousand words. And, the performance is GUARANTEED, because it's based on your mortgage contract, and not subject to market fluctuation.
Mortgage Accelerator VS. IRA
Chart shows how quickly net worth grows using the Mortgage Magic System compared to a typical retirement account. Apples to apples comparison, with $3,000 invested annually earning 6% compared to a 6% mortgage. A retirement plan that starts with the Mortgage Magic System provides FAR more money for retirement. Chart shows what an IRA or 401K would have to earn, dollar for dollar, by comparison. Example shown for typical $300,000 mortgage at 6%. Any other investment would have to earn 600% in year 1 to match the Mortgage Magic System. No other investment plan compares for building your wealth.
The Mortgage Magic System utilizes the unique tax-advantaged properties of life insurance in combination with our program's investment strategy to provide consumers with the ability to maintain a comfortable standard of living in their retirement years. Using a low-cost convertible term policy in the early years and converting to a cash value policy after the mortgage is paid off, clients have maximum protection at the lowest cost. Using this strategy, the insurance provides family protection while also protecting the insured's retirement assets from ultimate taxation.
The illustrations provided on this site are those of ING insurance products. We are licensed insurance agents and qualified to provide these products to our clients. Products of other insurance companies may be suitable as well.
ING Retirement Extra TM Using Life Insurance uses a cash value life insurance policy to potentially increase retirement security by combining death benefit protection and cash value accumulation.
The system is based on exact formulas. Your results are predictable, and based on the same arithmetic that banks use. You can see your results as a monthly cash flow summary. Even show them to your financial advisor. Imagine - a system that keeps the roof over your head for tens or hundreds of thousands of dollars less and also maximizes your retirement funds! You will be able to actually retire when you reach normal retirement age. Statistics show the average American has just $60,000 when they reach retirement age. Can you retire on $60,000? It's not "too good to be true". You just haven't been taught about finances this way. Follow the Mortgage Magic System™ - it works!
It is not necessary to refinance your existing mortgage.
There are basically two ways to go: using your own funds, or using a revolving line of credit. Our System supports both. Here are the key points of each:
Using your own funds: when you have saved a predetermined amount of money, you transfer it to your mortgage to pay down principal. This is akin to investing your savings in your mortgage. Your money earns a tax-free return equal to the mortgage interest rate. So, if you have a 6% mortgage, your savings earn 6%, tax-free.
Using a revolving line of credit: this has the effect of combining your mortgage account with your checking account. Each time you make a deposit into the credit line, it reduces the mortgage balance. By reducing the average daily balance, less interest accrues for the period: result: less of your monthly payment is for interest, with more going to reduce principal. The benefit here is that you are using the bank's money to reduce your mortgage! Don't get too hung up on the method or arithmetic: you can even change from one method to the other. The key is that
each dollar you invest in the accelerator cancels many times its value in mortgage payments.
Not really. For the revolving line of credit method, use either a HELOC or an overdraft line as part of your regular checking account. The overdraft line is convenient and works well, as long as the bank doesn't charge extra fees. It is also possible to utilize the revolving credit features of a credit card account, but this is not recommended.
Not at all. The amount of credit used is between $1,000 and up to a maximum of 2 times your monthly income. For example, a homeowner earning $6,000 per month will not use more than a $12,000 of credit. But remember, you can use as little as $1,000.
Note: We do NOT advocate replacing your mortgage with a HELOC or other line of credit. That is specifically not a part of anything in our system. We specifically advise that the line of credit used shall NEVER be more than 2 times your monthly income.
All financial information entered is anonymous; and you never enter an account number. We do not share or sell information with third parties.
- Consultation with a representative of your particular financial situation.
- Proprietary financial software that provides long-term guidance.
- Real time reports of transfer dates and amount.
- Real time reports of savings realized and projected.
- Monthly Analytic Section that tracks your progress.
- Monthly emails and timely messages provide information and ongoing guidance.
- Support via email and phone.
- Our guarantee the System accurately projects your savings and outcome.
- Two e-books with helpful information about mortgages and credit cards:
The Mortgage Magic System™ is a web-based product, and is accessed directly from our server using a login name and password. By maintaining it on our server, we can send timely notices when your financial plan should be updated. For example, when a credit card is paid down, we can send a notice to update to the next roll-down.
Support is provided either directly through us, or through our network of qualified affiliates. Since the Mortgage Magic System™ is a financial product that is customized for each client, it is best to work with the affiliate who knows your financial situation and goals.
No. Mortgage Magic System™ does not require any time-consuming reconciling with your checkbook and you do not make item by item daily entries.
Yes. Mortgage Magic System™'s software will show when transfers should be made from the mortgage checking account to your primary mortgage account. The transfers are not monthly, as many people think. The timing is variable and based upon your particular finances. For most people, transfers are made only once or twice each year.
The cost of the accelerator is $39 per month for 12 months and your use of the system is permanent. There are no annual costs, no renewal costs, and no fees. There is a free two week trial period before any payment is made. Payments are processed securely by Paypal. The cost of the accelerator is exclusive of the insurance you purchase.
For a policy quote, use the Retirement Planner located on the right margin of any page, or contact us at ingforlife@estates-on-line.com or call 516-426-6331. You can also speak to your insurance representative.
Users may cancel at any time, either before or after the trial period, and not be responsible for future payments.
The Quick Start package provides one-on-one phone and email support from one of our affiliates. It includes 3 months phone support with advice on setting up the "mortgage checking account", what to look for in a HELOC or revolving credit account, and how to achieve the best results using the Mortgage Magic System™ with each client's goals in mind. Quick Start Support can be obtained from an independent affiate.
The cost of the Quick Start Support Package is billed separately by each affiliate and is generally $120. Affiliates may offer other financial services as well.
Yes, you can cancel anytime and have no further obligation. Along with the software, our "TGIF" method and guidance are the keys that will help you reach financial security.
YES
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