Percy Power Point

What were your childhood dreams?

Debt Destroys Our Dreams

Statistics on Debt

Debt Destroys Dreams

More than 40% of American families spend more than they earn (Federal Reserve).

As of 1995, 92% of American families’ disposable income is spent on paying debts (up from 65% in 1975).  

Well-educated, middle-class baby boomers with big-time credit card debt

(University of Texas study printed in Wall Street Journal)

In 2008, more people filed for bankruptcy than will graduate from college (Bureau of Labor Statistics Consumer Expenditure Survey)

From 1991-2007, the filing rate for senior citizens was up by over 400%(Consumer Bankruptcy Project as reported by the Associated Press)

Who Files Bankruptcy?

What if you had no Credit Card Debt?

The typical household has $38,000 in consumer debt

(Consumer Reports Money Book)

In 2006, approximately 60% of credit card users did not pay their balances in full every month (Federal Reserve)

It is estimated that, on average, 20% of Americans have

maxed out their credit cards

3 Candid Questions

1. Is becoming debt free and aggressively preparing for retirement truly a priority for you?

2. What game plan do you currently have in place (if anything) to accomplish that?

3. If you could pay off your mortgage and your entire debt load in half the time or less, operating within the constraints of your current budget … how would your life change?

Mortgage Debt

Statistics on Homes/Mortgages:

-Nearly 1 in 519 homeowners, received a foreclosure filing during April 2008. (U.S. Foreclosure Market Report from RealtyTrac)

Could we achieve more, if we were not slaves to the lender?

In 1929 – Only 2% of homes in America had a mortgage against them. 98% were Mortgage FREE

In 1962 - 98% had a Mortgage Against them

(Christian Financial Concepts)

It Doesn’t Have To Be This Way!

What Could You Accomplish, If You Were Financially Free?

Spend More Time With Family?

Send Kids To College?

Travel?

Renovate Your Home!

Would You Retire?

“We can't solve problems by using the same kind of thinking we used when we created them. ”  

Albert Einstein

We Must Change Our Habits!

75% Replied that BECOMING AND STAYING

DEBT FREE was the number one key to building wealth! Remember, wealth is assets minus liabilities.

The Forbes 400 were asked: “What is the most important key to

building wealth?”

Skylar Witman

John Washenko

1997 Accelerated EquityOne of Utah’s Fastest Growing Companies in 3 Years

2002 Focused on Cure For ClientsAs children, Skyler Witman and John Washenko both saw their parents face foreclosure --- they decided to change their focus to helping their clients learn how to act like a bank and maximize their financial situation

2005 Money Merge Account (MMA)2005-2006 The “Denver 400” Project – Beta Test

2006 UFirst FinancialIn 12 Months…UFirst went from 10 agents to over 28,000 agents

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See What the Experts Are Saying

“A-” Rating

United First Financial

Closed-End Loan

$200,000 Principal Loan Amount 6% Interest

$ 1,199 Monthly payment 360 Months (30 years)$231,677 Total Interest Paid$431,677 Total Repayment

Principal Interest Balance Equity Paid

Month 1

Month 2

Year 1

Year 5

Year 10

Year 21

Year 30

$199.10 $1,000.00

$200.10 $999.00

$210.33 $988.77 $197,543 $2,457 $14,389

$267.22 $931.88 $186,108 $13,891 $71,946

$360.44 $838.66 $167,371 $32,628 $143,891

$696.23 $502.89 $99,877 $100,123 $302,173

$200,000 Principal Balance 6% Interest Rate

$1,199.10 Monthly Payment

$431,677

Prepayment Example

$ 5,000 Additional Principal Payment$195,000 New Principal Balance

6% Interest$ 1,199 Monthly payment 337 Months remaining$231,677 Original Interest Paid$208,373 New Interest Paid$ 23,304 Net Interest Saved

If you have any kind of debt, you should NOT have your money stagnating in a checking or savings account!

Checking

Savings

Create an Interest-Cancellation Account

= “Spending Account” Money goes in and out, but little or no interest is earned.

= “Safety Net” – Money is moved here in case we run into hard times. We usually earn .5% to 2% interest on this account.

What is an interest-cancellation account?

• Have you ever charged a balance on your credit card?– What was the interest rate on that credit card?

• What if you paid the balance in full at the end of the month?

– What would the effective interest rate be for that exact same card?

You have just created an

Interest-cancellation account!!!

That same principle applies…

• Can you pay your mortgage with a credit card?– Of course not.

• We need an account that will work as much like a Checking Account as possible, but still cancel interest.

– A Line of Credit (LOC) would work!• Unlimited check writing• Unlimited debit card usage• Access to YOUR money 24/7• Open-ended interest instead of front-loaded

interest (like on a mortgage)

Money Merge Account™ ProgramOpen-ended Line of Credit Options

Multiple Line of Credit Options• Home Equity Line of Credit• Personal Line of Credit• Commercial Line of Credit• Secured Line of Credit• Additional interest savings possible, by taking

advantage of interest float, using a credit card

Sample Family

$5,000 Monthly income

-$4,000 Living expense (mortgage, car payment)

$1,000 Discretionary income

Month 1 $3,500 MMA investment

$4,000 Expenses

$7,500

$5,000 Income

$2,500 Average Monthly Balance

Month 2 $4,000 Expenses

$6,500

$5,000 Income

$1,500 Average Monthly Balance

$20.83

$12.50

Month 3 $1,500

$4,000 Expenses

$5,500

$5,000 Income

$ 500

$3,675.77 Funds transfer

$4,175.77 Average Monthly Balance$34.80

Interest Cancellation

$17,249

Principal Interest BalanceRemainingPayments

Month 1 199.10 1,000.00 199,800.90 359

Month 2 200.10 999.00 199,600.80 358

Month 3 201.10 998.00 195,723.93 339

Month 4 220.48 978.62 195,503.45 338

Month 5

`Principal Jump

3 month total

$68.13

$220.48

$201.10

$ 19.38

Reduced mortgage by18 months

Month 4 $4,175.77 Starting Balance

$4,000 Expenses

$8,175.77

$5,000 Income

$3,175.77 Average Monthly balance

Month 5 $3,175.77 Starting Balance

$4,000 Expenses

$7,175.77

$5,000 Income

$2,175.77

$26.46

$18.13

Month 6 $2,175.77 Starting Balance

$4,000 Expenses

$6,175.77

$5,000 Income

$1,175.77

$2,920.23 Funds transfer

$4,096 Average monthly balance

$34.13

Interest Cancellation

$12,274

Reduced mortgage by

16 months

Principal Interest BalanceRemainingPayments

Month 4 220.48 978.62 195,503.45 338

Month 5 221.58 977.52 195,281.87 337

Month 6 222.69 976.41 192,138.94 323

Month 7 238.41 960.69 191,900.53 322

Month 8

`

6 month total

$146.85

$238.41

$222.69

$ 15.72

6 month total

Interest Cancellation

$29,523

6 month total

Reduced mortgage by

37 months

Month 12 $2,003.68

$4,000 Expenses

$6,003.68

$5,000 Income

$1,003.68

$2,917.67 Funds transfer

$3,921.35 Average monthly balance

$32.68

Interest Cancellation $ 10,184

Reduced mortgage by

14 months

Principal Interest BalanceRemainingPayments

Month 10 256.59 942.51 188,245.86 308

Month 11 257.87 941.23 187,987.99 307

Month 12 259.16 939.94 184.811.16 295

Month 13 275.04 924.06 184,536.12 294

Month 14

`

Principal Jump

12 month total

$297.89

$275.04

$199.10

$ 75.94

12 month total

Interest Cancellation

$50,862

12 month total

Reduced mortgage by

53 months

MMA Program Conventional Program

Starting balance $200,000

Balance in 1 year:

10.4 years

$70,422

30 years

$231,677

$200,000

Balance in 5.5 years:

Repayment time

Total interest paid

Total interest savings: $161,255

$184,811 $184,752Balance in 1 year:

$197,543

What rate of interest did you pay on the LOC?

• How much did you borrow over the last 12 months?

• Software Inv: $3,500.00• 1st Funds xfer: $3,675.77• 2nd Funds xfer: $2,920.23• 3rd Funds xfer: $2,917.67• 4th Funds xfer: $2,917.67

• Total borrowed: $15,931.35

• Total interest paid…. $297.89• Divided by: Borrowed funds: $15,931.35

• Why does this work? Answer: Because our income cancels out large amounts of interest by reducing the balance on the LOC.

• Would you borrow money at 1.87% to pay off a mortgage at 6% and all other debt at 6-25%?

1.87%

How Would You Pay This Off?

$21,53810%

Line of Credit Balance $4,309

6.125%Furniture

$27,75316%

Credit Card

$42,2962.75%Auto Loan

$226,1836.5%Mortgage

$7,7539.125%

Boat Loan

Math – Working For or Against Us?

Checking 0%

Income

Strategic Debt Payoff

Creditors

Cash Flow Model(Using a Line of Credit)

PAYPAY

Funds Transfer

Minimum Reserve

Income

Income Income

Optimal transfer point

Low Balance

Available

Funds

Line of Credit 10%

Imagine using a Smart Money System

that shows you how to keep more of your hard earned money and

put it to work for you.

Financial GPS

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Features and Benefits of the Money Merge Account Version 4

• True Cost• Strategic Debt Elimination• Adjustable Aggressiveness Scale• Access from cell phone via text• Pay bills • Access from any internet connected computer• Works on Mac and PC• Tracks Multiple or Investment Properties

As of 2008, United First Financial had helped their clients pay additional principal toward their debts in the amount of:

$400 million By 2010, that number was almost

$700 million