copyright © 2006 randy luebke’s academy of mortgage planning sm all rights reserved the bank of...

Copyright © 2006 Randy Luebke’s

Academy of Mortgage Planning sm

All Rights Reserved

The Bank of You Paradigm sm – The Professional Mortgage Plan sm

A Better, Smarter, Safer Way…

3 Questions

If You Own Real Estate,

Single Biggest Asset? Single Biggest Liability? Single Biggest Expense?

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Real estate is the most mismanaged, generally

unmanaged, asset class on one’s balance sheet

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““The American Dream”The American Dream”

• Work & ContributeWork & Contribute• Live Personal Live Personal

FulfillmentFulfillment• Leave a LegacyLeave a Legacy

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Financial Planning….the 3 Legged Stool

Social Security Company Paid Pension Modest Savings

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Great Strategy 2 Requirements

1.Stool Needs 3 SOLID Legs

2.You Die (Reasonably Soon!)

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A 3 Legged Stool With

3 Breaking Legs!

Social Security = Tremendous Stress Company Paid Pension = Declining Since 1970’s Modest Savings = Not Enough

People Are Living Longer Than Ever!6

Copyright © 2006 Academy of Mortgage Planning TM

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Multi-Generational Trap!

What Are You What Are You Going To Do?Going To Do?

•Inheritance?•Lotto Ticket?•Wishful Thinking?

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““The Dream - Not The Dream - Not Realized”Realized”

smsm

Robert KrakowerRobert Krakower

Must Optimize ALL AssetsMust Optimize ALL Assets Cannot Pay Lip Service To Real Cannot Pay Lip Service To Real EstateEstate Cannot Follow Conventional Cannot Follow Conventional Wisdom!Wisdom!

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How Much Do You Want To Invest In This?

You determine how much to invest how long it’s invested You can increase your monthly contribution, but not reduce it If you attempt to pay less, you will lose your previous contributions It’s not safe from loss and you cannot control of the cause of the loss As your investment increases in value, so does your risk of loss It is not liquid and you have to pay fees to convert it into cash You must qualify to receive it You tax liability increases with each installment It has an ROI of 0% When fully funded, it pays NO income

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Why Do People Hate Mortgages – And Why You Shouldn’t

Our Story Begins….

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Real estate is the mostmismanaged, generally

unmanaged, asset class onone’s balance sheet

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The Registered Mortgage Advisor

RMA?

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The RMAThe RMA

What makes us different?What makes us different?

A Financial PlannerA Financial PlannerNot Stock, Bonds & Mutual FundsNot Stock, Bonds & Mutual Funds

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The RMAThe RMA

What makes us different?What makes us different?

A Financial PlannerA Financial PlannerManage Debt & Real Estate EquityManage Debt & Real Estate Equity

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The RMAThe RMA

A Financial PlannerA Financial Planner

The Professional Mortgage Plan sm

- Comprehensive Financial Plan That Integrates Real Estate Solutions

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The RMAThe RMA



The O.E.S.sm = Goldie Locks 3 Things:

• Protect RE Equity from Loss• Increase Safety & Liquidity• Reduce the Taxes You Pay:

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11-17% Better Returns11-17% Better Returns

$1.5 Billion Dollars A Year$1.5 Billion Dollars A Year

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The RMAThe RMA



4 Steps:1. Eliminate Reductive Debt2. Establish SIGNIFICANT LIQUID Cash

Reserves3. Protect What You Have4. Save & Invest For Long-Term Goals & Plans

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The RMAThe RMA



4 Steps

Common Sense - Uncommon Behavior The Sequence - Avoid Failure/Back-Pedaling

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The RMAThe RMA



2 Kinds of Debt: Reductive Debt – Debt That Costs You Money, Used to

Purchase Depreciating Assets Productive Debt – Debt That MAKES YOU MONEY

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The RMAThe RMA


Part of a

Wealth Management Team

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The Wealth Management TeamThe Debt & RE Equity Manager

The Asset ManagerThe Tax Manager

The Estate Manager

All Working Together !23



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CertaintyCertainty

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Edward Deming - System Failure

94% of all failures are Systemic We are going to give you a

system that Works!

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The Gap and the GiftThe Gap and the Gift smsm

The Charter The Charter Builder SystemBuilder System smsm

The ProfessionalMortgage Plan sm

The Bank of YouThe Bank of YouReviewReview smsm

The Bank of YouUniversity sm

TheThe

Bank of You ParadigmBank of You Paradigm sm sm

The Founder’s ReportThe Founder’s Report smsm

A Better, Smarter, Safer Way!

QLE Personal Banking SystemQLE Personal Banking System sm sm

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Bank Wins!The truth about

how money, credit and financing

really work

Why Banks Win The Money Game and How You Can Win Too.

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“When in doubt, always assume that..., The Bank Wins”

•They are supposed to win!•It’s what they do (all financial institutions)•They are the “Casino”•The problem is …….

Principle # 1Bank Wins!Bank Wins!

smsm

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Rule #2 – Rule #2 – Become a bank

• Behave like a bank• Don’t do what banks want• Do what banks do

• Become your own – Become your own – Bank of You!

Principle # 1Bank Wins!Bank Wins!

smsm

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Better, Smarter, Safer Way!

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Case Study

House Rich Cash Poor If Hubby Dies I’m Out the Door!

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Case Study - The Facts

Income$40,000 His Pension$20,000 IRA I/O Withdrawals$10,000 IRA Principle Withdrawals

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Case Study - The Facts

He’s 70 She’s 60 $500,000 F&C Home $300,000 IRA $6,000 in Liquid Reserves (Less than 1 month)

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Case Study - The Goals

Biggest Fear?Running Out of Money!BTW – Pension Dies with Hubby!!!

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Case Study – More GoalsNot Run Out of Money!Reduce Their TaxesProvide for WifeIncrease Their Liquidity

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The Solution?

The OES sm The Optimized Equity Structure

Increase Safety & Liquidity

Protect Real Estate Equity

Reduce Taxes They Pay

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The Solution – The OES sm

Cash for Reserves = 12 monthsCash for Payments = 10 YearsPurchased IGIC for HusbandStrategic Rollout to Reduce Taxes


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The Power of Leverage

35 Years Old $200,000 Equity 6.75% ROR + Rule of 72 $1.5 Million in 30 Yrs

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What Do Banks Do?What Do Banks Do?

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Principle # 4 – LeverageLeverage

“The result is always greater than the effort.”

• Leverage:• Multiplies the results of your efforts• Is always working for or against you

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Principle # 5 – ArbitrageArbitrage

“Investing at a rate of return that is higher than your cost of money.”

• Cost of Money = Principle #3Principle #3• Positive Arbitrage = ?• Negative Arbitrage = CD’s

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The Power of Leverage

Cost = $232k @ 6.75% Initial Investment = $200k Net = $1,000,000 @ Age 65

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2010

Convert IRA to Roth IRA

The 4440 Tax-Free IRA The 4440 Tax-Free IRA ConversionConversion

The Mash-Up!

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$4,000 x 30 Years = $120,000

$4,000 x 33% = $1,320 Taxes Saved Yearly

$1,320 x 30 Years = $39,600 Total Taxes Saved

10% Tax-Deferred Growth = $750,000 Nest Egg

The Rest of The StoryThe Rest of The Story10% x $750,000 = $75,000

$75,000 x 33% = $25,000 Taxes Due

All Your Savings Wiped Out In Just 19 Months!!!!

20+ Years = Pay 15 Times Taxes Out vs. Savings Going In20+ Years = Pay 15 Times Taxes Out vs. Savings Going In

Whose Retirement?

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$ $ $ $

$ $

$ $ $ $ $ $

$ $ $ $

$ $

$ $ $ $

$ $

$ $

$ $

$ $

$ $ $ $

$ $ IGREIGRE

IGICIGIC

401Kabin401Kabin

Money Trapped In Qualified Plans Non-Qualified Alternatives

Whose Retirement?

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$ $ $ $ $ $

$ $ $ $

$ $

$ $ $ $ $ $

$ $ $ $

$ $

$ $ $ $ $ $

$ $

$ $

$ $

$ $ $ $

$ $

$ $

$ $ $ $

Goal – Move QualifiedGoal – Move Qualified

ToTo

Non-Qualified AlternativeNon-Qualified Alternative

Whose Retirement?

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It’s Not The Rate – It’s The StrategyIt’s Not The Rate – It’s The Strategy

The Professional Mortgage PlanThe Professional Mortgage Plan sm sm

A Better, Smarter, Safer Way?A Better, Smarter, Safer Way?

Whose Retirement?

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Strategy #2Strategy #2

What If…• You Could Pay Off Your Mortgage in 7-10 Years?• You Could Become Debt-Free in 6-12 Months?• You Could Harvest Equity More Quickly ?

• Destructive Debt vs. Productive Debt

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??If there was tool to provide you with debt-free

cash, would you want to know about it?

??If you were able to receive debt-free cash, what

could it help you to accomplish?


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What is EquityKey?

EquityKey will provide debt-free cash today

in exchange

for a percentage of the

future appreciation

of the property.

Current equity remains the Homeowner’s


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The Revenue ToolboxThe Revenue Toolbox

Why Use The Equity Key?

• Those That Need Money• Those That Don’t, But ….

• Missed Fortune – Enhancement/Alt• Estate Planning – ILIT

Life Insurance for Death Benefit?

Leveraged Premium Financing• LTC – Purchase/Alt• Asset Protection• Charitable Giving• College Funding• Down Payments – Themselves or Children

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Optimizing Real EstateOptimizing Real Estate

The Revenue ToolboxThe Revenue Toolbox

Why Use The Equity Key?

• No Cost To Client To Obtain• No Cost To Client To Keep• Variety of Real Estate

Primary, Vacation, Rental, Commercial

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Why Aren’t My Other Advisors Talking About Why Aren’t My Other Advisors Talking About These Concepts?These Concepts?

• They Can’t!• NOT your financial planner• Not your CPA• NOT your Attorney• NOT your current lender• NOT your friends and family

None of them has the tools, systems & strategies YOU NEED

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copyright © 2006 randy luebke’s academy of mortgage planning sm all rights reserved the bank of...

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