Cash Recovery Party Powerpoint Notes
Cash Recovery Party PowerPoint Notes:
SLIDE 1
CASH RECOVERY PARTY
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SLIDE 2
General Introduction about myself
I am involved with a nationwide group of Real Estate Investors that meet every morning on a conference webinar. We discuss marketing, expansion strategies and wealth principles.
This is all the result of an education company called Renatus. It is the #1 rated Real Estate Investment Education Company in the country and is A+ rated by the Better Business Bureau.
The reason that I invited you here today was that I wanted to share with you some important information. While going thru the classed, I started to have some epiphanies, and I couldn’t figure out why this material was not taught in high school.
I was finally given permission by the CEO of Renatus to share with you one section of the education that I believe all of you need to know and will appreciate. This is a gift from me to you. Please take notes.
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SLIDE 3
What you focus on is what you get… so it is important to focus on the right things.
Through this education, I have learned to focus on a HIGH FINANCIAL EFFICIENCY vs. a LOW FINANCIAL EFFICIENCY
I, like most Americans, used to wake up every morning and my focus was on paying my debts. I would go to work to earn money to pay my bills. If I didn’t, I would lose everything. I paid taxes the way I was always told, they just came out of my paycheck and if I was lucky, I got a tax return every year. The money that was left over, I generally spent on Liabilities.
As I began to go through my Investment courses, I began to better understand and increase my Financial Efficiency. I learned that I needed to focus my spending on income systems. For more than a decade, real estate has been my investment vehicle of choice. Rental properties are one example of an income system. I get paid from them whether I work or not.
From my investment courses, I have learned how to use the tax code to increase my write offs and I am now learning how to pay off my mortgage in 1/3 of the time, with no “bi-weekly payment schemes” and without increasing my monthly income. This information has changed my life and my Financial Efficiency. I now am more focused on buying assets, or things that increase in value, or make me money vs. things that cost me money me and lose their value.
I think that what I am about to show you, if you implemented it, could have a drastic affect on your financial efficiency and outlook.
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SLIDE 4
Here is a chart of my former Financial Life. This pie chart shows the typical financial life for Americans
On average, we pay 33% in taxes right off the top
Another 33% of our income was going to interest. We are being used as mules to support the banks by paying interest on mortgages, credit cards, student loans and vehicles.
This means most Americans are living on 33% of their salary.
SLIDE 5
George Carlin
SLIDE 6
By taking small steps and making small changes in your financial efficiency, you can change your financial reality significantly. What I am about to show you will allow you to pay 10% in taxes, 10% in interest and allow you to live on 80%. I wanted to share this with you today as a gift. I think everyone needs to see this, learn this and live this. We need to stop following the herd because the powers that be have stacked the deck against us.
SLIDE 7
By learning to live with High Financial Efficiency you learn to Control Stuff vs own stuff.
This starts by managing your cashflow. Most people are making money as a w-2 employee. They are paid on their SS#. As you move towards a High Financial Efficiency, you will learn the advantages of being paid on an EIN number instead of a SSN. This includes using s-Corps and LLCs.
The income tax for those with low financial efficiency has one paying 33% in income taxes. The HIGH side allows you to begin paying 0% on Income tax. This means Income taxes are not deducted from your income even before you receive it.
With a Low Financial Efficiency, you Spend about 50% on stuff: Food, Cars, cell phone, gas, clothes, etc. With High Financial Efficiency, the USE 50% with the intention of getting most of it back.
Life Tax is 10%: Sales tax, automobile fees, property tax
So with Low Financial Efficiency, the income earned on our SSN is 100% minus 33% for income tax, we spend 50%, we pay 10% in life tax which leaves only 7% left over for savings.
With High Financial Efficiency “I” don’t earn anything. My company earns 100% of the income. Thus we don’t pay income tax, yet. We first use 50% of the money to pay for stuff like our cell phones. I don’t own a cell phone, my company does, and I USE it. I don’t own a car. My company does and I USE it. I pay 10% in Life Tax which leaves me a remainder of 40%. And this is the money that I am taxed on. Under this scenario, I am actually being taxed on my NET income, where I was previously being taxed on my Gross income.
Now watch this. People get angry and say the rich get richer. The reason is, is that the rich get to bring that 50% over. The laws allow the rich to bring over the 50% usage and begin deducting it from their NET income. There are more tax advantages for the rich and that is why people are so angry. Actually, there are more tax advantages for those with the knowledge, those with High Financial Efficiency. These are the deductions that you get to take against your income. This leaves an effective tax rate of about 8% leaving you 32% left over in savings.
The only thing that has really changed here is, NOT the amount of money we made, but our knowledge and how we accounted for the money. High Financial Efficiency allows us to have 32% of our income left over, where a person with Low Financial Efficiency only has 7% of their income left over. Now I started taking these classes because I wanted to become a better real estate investor. What I learned was how much money I was actually giving away.
The reason that I am hosting this cash recovery party is not so you can become real estate investors. I want you to see how you can take action immediately to start recovering your cash next week, if you wanted to.
SLIDE 8
Well, they save it or invest it. People with Low Financial Efficiency typically invest what’s left over in low return vehicles. 1%, 2%, maybe 3%. They end up investing (or saving) their 7% in vehicles that decelerate their savings.
People with High Financial Efficiency invest their 32% that’s left over into real estate or businesses. This accelerates their money with returns of 12-50%. So this is what I am doing with my financial life and it has made such an impact on my financial future. That is why I got permission from the company’s CEO to share this upcoming video with you.
But before we get to the video, the other thing I wanted to share with you is how to use the velocity of money to accelerate your mortgage.
SLIDE 9
This is a payment schedule for amortized debt – a mortgage. This represents a $200,000 mortgage at 5% interest for 30 years. It shows you that loans, like your mortgage are front-loaded with interest. In month 1, the Payment of $1,073 represents $240 in Principle and $833 in interest.
The borrower will pay for 16.5 years and over $208,000 before the principle amount of the payment is more than the interest amount.
SLIDE 10
This is what is really going on. This spreadsheet is basically a Truth In Lending Statement. This reflects a $200,000 loan at 5% interest. You will see down at the bottom that the interest paid on this loan is over $186,000 on a $200,000 loan. This doesn’t look like 5% interest to me. It looks more like 90% interest.
So on a 5% mortgage, we are paying 90% on the LOAN. We don’t really know this because nobody really told us this or taught us. It was on the Truth in lending statement, but I didn’t read it. Nobody really does. This is where 33% of your life is going. We have a way that you can change that.
SLIDE 11
Another class I took explained Sweep Strategies. By using the SWEEP Strategy once a year, this shows how you can chop off 242 months off your mortgage. You are taking on no additional debt and making no additional payments. The Sweep Strategy allows you to use your money to pay down your debt when you are not normally using your money. Like when it is sitting in your checking account.
The Sweep Strategy uses an existing bank product that every bank offers you, but no banker will tell you how to use it this way. This shows that the Original loan was 360 months. How would you like to pay off your mortgage in 1/3 the time without making any additional income or payments? How would you like to save 2/3s of the amount that you pay the bank in interest? In this example, that’s over $135,000 in interest that you don’t have to pay.
So here is the idea. Right now most of people life looks like this and I want your life to look more like this. You can do this as long as you increase your Financial Efficiency.
This 40 minute video is just a portion of a 2 day class that will show you some simple strategies, what is possible and how you can implement it in your own life. The instructor, Mark Kohler, is an author, national speaker, CPA and Attorney. He teaches accountants and lawyers how to better serve their clients with strategies like the one you are about to see.
I hope you enjoy it!