Case Studies

Examine these case studies and find people who were in circumstances similar to your own and see how they were able to ensure their prosperity and security.

A 34 year old gentleman recently purchased a house with a 15-year mortgage that had $2574/month payments. He was comfortable with the payments, but had no extra money to direct toward savings at the end of the month.

We restructured his mortgage and reduced his monthly mortgage obligation by $870 each month. He deposited this money into a SAFETY Fund each month. He is still on track to pay off his mortgage in 15 years if he wants, but if he simply continues socking away the $870 until he's 65, his SAFETY Fund will be $1,467,699. He'll be able to draw on that SAFETY Fund for Tax Free income in retirement that will nicely supplement his 401(k).

 

A 55 year old couple had only 5 years remaining on their mortgage and had built up a lot of equity. The wife did not want to make mortgage payments after another 5 years elapsed. She wanted to be mortgage-free, but she understood that the equity in the home was earning NOTHING.

We repositioned $300,000 of idle equity into a SAFETY Fund that could grow at a compounded rate of return tax free. After 5 years they will be able to withdraw $10,000 per year to make their mortgage payments while the balance continues to grow. By the time they reach retirement age at 65, the account will grow to $410,192 - even though they've withdrawn $10,000 each year along the way. If they continue to withdraw $10,000 each year to supplement their retirement income, their SAFETY Fund will grow to over $1Mil when they reach 76 years of age. Of course, it's available for them to enjoy as they wish along the way without penalty or taxation.

A 45 year old male was able to reposition $350,000 of idle home equity into our HERO SAFETY Fund. He wanted to compare the performance of the SAFETY Fund to a Money Market earns 4.75%, a CD earns 5.5%, an Annuity that earns 8.5% and a Mutual Fund that earns 10%. The objective is to see how much each grows and more importantly how long each would last when he retires and begins to withdraw $117,893 annually. It's important to note that each of these vehicles would grow tax advantaged, but will be taxed when he begins to withdraw the money in retirement.

The Money Market Fund grew to $490,934, but lasted only 5 years when he began to withdraw the $117,893. The CD grew to $584,817, but lasted only until the 6th year. The Annuity grew to 1,036,718 and supported him for 13 years. The Mutual Fund grew to 1,109,928, but supported him only until the 14th year. The SAFETY Fund, because it was not subject to taxation, provided support until he was 101 years of age at 117,893 per year for 35 years!