In our last case, John and Jill Doe were meeting once again with their financial planner.  They had recently looked over two plans that would help them maximize their asset's and prepare them for retirement.  The MCA or Mortgage Merge Account had certain advantages that could actually put more money in their hands at retirement, but only if they sold their home.  The Equity Harvesting Plan gave them a large nest egg and also saved them taxes over their lifetimes.  But their financial planner had noticed some interesting characteristics in each plan that he thought that they could take advantage of with the Doe family.

The first was the MCA's ability to reduce interest costs.  If the Doe's continued to pay interest only cost's on their mortgage, over 30 years that would add up to a real high number.  So the cost of investing equity dollars would be high, and the MCA program actually reduced interest dollars.  The planner also noticed that they had to refinance five times in 30 years with the Equity Harvesting plan, but the MCA plan they'd only get one mortgage and that would be it, which would save thousands in refinance fee's.

But the MCA account didn't account for John Doe's income, and John would be paying allot of taxes in the future. Even if John was to save 3 to 4k a year on his taxes, this would add allot to the bottom line.  The planner also noticed that the equity harvested by refinancing also provided a substantial bump to their over all bottom line in the accumulation account.  So Billy Planner came up with a novel concept.  What if you could keep the interest cost's to a minimum, but then pump not thousands, but hundreds of thousands of dollars into John and Jane's retirement account with three strategic refinances over the next 30 years.

On paper, the Does would be refinancing at year 9, 18 and 27.  They'd pay almost half the closing cost's that they'd pay through the equity harvest program.  They'd also be able to sock away hundreds of thousands of dollars away, and be able to pay more into their monthly retirement account with the MCA checking account.   The final numbers were outstanding.

If they proceeded with the new plan, the Doe family would have over $3.994 MILLION dollars after 30 years!!!!!!! The cost would be similar to the equity harvesting plan, because they'd keep taking out new mortgages, but the net proceeds from this plan would be over 3.1 million dollars, and even with the fact they had a mortgage, within 4 years this would be paid off as well with the cash flow generated with 3.1 million dollars.

Well John and Jill didn't need much convincing, soon Billy Planner was working up an investment program that they could jump into, and the Does were soon signing up with Mike Multilevel and his exciting MCA program.  They'd still need their mortgage planner but not for a few more years.  It's too bad, because their mortgage planner new about the MCA account but just didn't think it was a viable product.  Oh well, I'm sure there are plenty of fish in the sea!!  But where??????