More MMA nonsense... (sigh....)
PEOPLE! If you have an argument about responses inside a thread, POST YOUR ARGUMENTS ON THAT THREAD!!!
If you MUST, you can even start a NEW thread.
DO NOT (I repeat, DO NOT) contact any particular individual on an unsolicited basis merely to argue something when absolutely nothing you have to say is sensitive nor private!!!
Case in point;
I just received a private email argument from someone (who I will refrain from outing completely... his initials are A.P., so you know who I am speaking of.)
Here's the content, with my responses;
Clearly you don't get how the MMA works. You must have discretionary income for this to work for any one. Most people disciplined or not, do not have one or more months income laying around, and If they do, most people are not going to pay down their mortgage with it unless they can have access to it if they need it.
So, RIGHT off the bat you are acknowledging that this "system" is beyond effective use of MOST people.
This is where the HELOC comes in to play. For example, if you are making $10,000 per month with $1000 of discretionary income this program will direct you to send $10,000 to your first mortgage. You income will zero this HELOC balance and will you spend you budget over the next 30 days. Pay your bills late, before you incur a late charge, pay your impounds your self at the end of the year, float as much as possible on a credit card for 28 days before you pay interest on it and you will beat a mortgage calculator using $1000 per month to your principle every month on average by 20%. Whether the rate on the HELOC is 8% or 24% will make little difference because your average daily balance on the HELOC is so low that there may be a few months difference in the pay off time.
EVERYTHING you just described can be done for free... no $3,500 memberships or subscritions or software is required.
The use of a mortgage calculator shows you will pay off the 30 year mortgage 6 months ahead of the MMA software. The actual use of the software will pay off your mortgage 6 YEARS EARLIER than the mortgage calculator on a 30 year loan.
No it will not. This 'software' can't bend the basics of math. Anyone who can auto-deposit their paycheck to their mortgage, and then "sip out the dollars" as late as allowable can accomplish the SAME results without any $3,500 'software' program.
FURTHER... anyone taking this path is 'winning' at the wrong battle! They end up accelerating the elimination of the single most powerful aspect of their retirement planning; Their tax-preferred home equity leverage!
Financial efforts to accelerate payments are far better spent building equity OUTSIDE of your residential real estate. Extra dollars in THIS direction will set you ahead, and hold you safer.
I wrote to you because of your title, Strategic Equity & Mortgage Planner. When & if you 'get it" you will see this as a valuable tool to be used in certain instances to help your clients.
This is a stupid financial scheme for anyone with an ounce of financial common sense and discipline. I cannot think of ANY situation where this might be appropriate, compared to safer family financial management methods.
What are your fee's for managing a million dollars?
For equity and investment management, our firm is only paid on results... if our clients are earning profits, we aren't paid.
The MMA fee is $3,500, one time!
Pretty expensive for something that hurts the finances rather than helping.
All around smarty pants
OK... A.P., if you really think this plan is a good idea, please explain;
A) What is the software specifically doing that CAN NOT be done by someone without the software, for free?
B) If you SUCCEED, and eliminate your mortgage faster... how is that beeter than to have accelerated the accumulation of tax-deferred retirement investments instead?
Strategic Equity & Mortgage Planner