Common Sense Strategies for
Successful Equity Management
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Low interest rates are good for mortgages and hopefully for credit cards (unfortunately many credit cards companies don’t tend to give us the breaks).   We can definitely use low rates to our advantage by properly setting up our finances with a good equity repositioning stategy.

But unfortunately there are also some negative consequences for people who are trying to save money in CD’s, Money Markets and Savings Account.  As interest rates fall the rates of return on these will fall as well. A CD paying 3.5% is not even keeping up with the cost of living. You are basically going broke safely. 

A better way is to use the equity index products we talk about. You get the guarantees and safety of a CD with the upside potential of the stock market.  Learn more about getting upside stock market potential without risk under the safety section of our website.

Here is a very informative article on the downside of rate cuts.

Here are a few more reasons why equity repositioning is so important for homeowners today. Our grandparents used to have the luxury of having a pension. This was a paycheck for life. It was a stream of income you could not outlive and it was designed to cover your basic needs (food, gas, general living expenses etc.)  The idea was to pay off your house so you would not have a mortgage payment to worry about and then your pension and social security would be enough to live on. 

The 401k and IRA were created in the mid 70’s and they were designed as a “nest egg concept” to supplement your pension. You would use this lump sum to buy the boat, motor home or vacation house. Your pension covers the bills; the nest egg makes retirement fun.

As we know today, pensions have disappeared. We are now trying to use the 401k and IRA as our pension. Unfortunately it doesn’t work. First, we get taxed on the full accumulation value of these vehicles when we go to take money out.  This eats up around 30% of the value. (Maybe more). 

Second, in most cases people have their 401k and IRA dollars at risk in the market.  Many hard working Americans have lost huge amounts of money due to market losses and fund miss-management.  I have seen to many cases where individual portfolios have been wiped out.

Using a proper equity repositioning strategy you can create a tax free income stream to create your own pension.  Move a portion of your home equity out to one of the vehicles we suggest and watch it safely grow.  First, structured properly you are not taxed on growth or withdrawal. Second, you get good upside potential of the market with NO RISK of loss.  Historically these vehicles will net you a 7%-8% tax free return. And that’s all you need to create real wealth.  Learn more about home equity management, equity repositioning and where to put the money so it grows safely by viewing our online seminar.

Our new radio show called Get Wealthy Arizona starts Wednesday, October 24th. Showtime will be every Wednesday from 3-4pm Arizona time on KFNX 1100AM. You can also listen live on the internet at http://www.1100kfnx.com/.

We will cover equity repositioning, home equity management, retirement planning, how to minimize taxes and more. If you have a home mortgage in Phoenix, Scottsdale or anywhere in Arizona you will enjoy the show. If you are thinking about refinancing your mortgage, doing a cash out refi, or buying a home tune in to the show and gets some simple information you can use to optimize your financial picture.

If you have any questions on home equity management, equity repositioning, mortgages or retirement planning post a question on this blog and if we answer it on the air we’ll send you a free copy of “Stop Sitting On Your Assets” by Marion Snow. This book is a top seller on Amazon.com and a $24.95 value. It is one of the best books out their on home equity management and equity repositioning.

As Equity Repositioning Strategies are starting to get more popular it is important to keep your equity safe when you separate it out. Safe meaning GUARANTEED against loss. We do not suggest putting home equity in to any investment vehicle that has the possibility of going down. The are ways to get safe double-digit returns with out risk of loss.  Check out the safety section of our website for more info.