"55 Million Americans (ages 45 to 64) are very concerned about having enough money saved up for their retirement.

70% of American retirees (ages 62 and older) would live in poverty if it wasn´t for their Social Security Income"
hat does this have to do with home ownership?

As you will discover after you read every word in these pages, just about everything!

What makes you so sure that that the home that you bought or that you are going to buy here in Arizona, is going to provide you with any meaningful amount of equity, after it´s finally paid for?

Before you buy your new home, you need to know how to insure that your property performs as a very productive investment throughout the ownership period, regardless of the loan type and for how long you hold the property.

Otherwise, what you paid in interest throughout the term of your mortgage loan, will cancel out the benefits of appreciation. This will only leave you with what the house was bought for at current dollars.

And since we are talking about 15 to 30 years from the time you bought it until it´s finally paid for, inflation will erode most of what was left.

The following scenario will illustrate this serious problem faced by most Americans. It will show you how it´s going to hurt you if you do not make your property an investment; the sooner the better.

This Scenario Tells you How
A 5-Figure Annual Negative Charge against your current Net Worth can seriously slice your Safety Net

The following scenario illustrates what causes the slice. This is how banks would like you to go when you buy a new home (and love you for it for obvious reasons):

1. Purchase Price: $300,000
2. Interest Rate; 6.75%
3. Term: 30 year fixed
4. Monthly Principal and Interest:$1,751.1
5. Your Total Paid in Interest  : $360,437.35
6. Total Paid for your home: $660,437.37
7. Projected Appreciation over 30 years: $ 310,000
8. Estimated cash flow over 30 years= Purchase minus Price-Cost of Financing plus Appreciation= $300,000-$360,000+$310,000=$ 249,462.65 (estimated dollars, 30 years into the future)
9. After inflation, at of 4% per year, the $ 249,462.65 that you finally net after 30 years, will only be worth about $76,913.

There is absolutely no justification to give so much of your money to the bank, especially when you realize what other older Americans are now facing.

In the above scenario, the interest paid over the 30 years represents about $12,000 a year (5-figure annual negative charge against your current net worth) totaling a negative charge of $ 360,437 dollars over 30 years. By diminishing your Net Worth, it´s placing you in a collision course with the Economic Storm.

Economic Storm in the U.S.: A Nerve-Racking Future for Most Americans

• 33% of retirees depend on Social Security income for 50% of their total monthly income (before taxes)
  
  33% of retirees depend on Social Security income for 90% of their total monthly income (before taxes)
  
  
•  "A recent study of 2500 people ages 45 though 64 lays out the retirement riddle for Americans. 71% admitted they are worried about having enough money for the retirement they envision.
  
  Yes, 71 percent! With 78 million boomers in this country, that suggests 55 million may be concerned enough about the state of their savings to be keeping tabs on every penny"
  
  "According to the Federal Reserve Board, as of 2004 half of households headed by workers 55 through 64 had less than $88,000 in retirement accounts"
  This information was provided by AARP, Jan/Feb 2008

What possible explanation can account for Why such a massive number of Americans are facing such adverse circumstances?

I recently completed reading a fabulous book, written by Andy Andrews, Mastering the Seven Decisions That Determine Personal Success.

There are two quotes stated by the author that I find extremely relevant towards explaining this complex situation.

"If decisions are choices, and our thinking dictates our decisions-then we are where we are because of our thinking"`
President Harry S. Truman

and,

"Our very lives are fashioned by choice. First we make choices. Then choices make us."
Anne Frank

Conclusions

• The #1 problem faced by most Americans (almost 70%), is attributed to their insufficient levels of net worth.

• Expensive Misconceptions
Too many Americans think about their homes as being an Investment automatically because they only focus on appreciation as true gain from home ownership. They rarely consider the thousands of dollars that they paid in interest. for the duration of the mortgage

Too Many Americans believe that a 30-year fixed interest loan is the best approach for home ownership because the monthly payments do not change. This is true, but if you neglect to minimize the effect of the cost from interest, then this plan is prohibitively expensive.

• Major Causes and Effects
As you probably have realized, the following causes
• Lack of planning
• Deficit-producing financing
• Low income generated from your Net Worth
• Poor asset appreciation
• Inflation
Produce a forceful inertia effect that can drift you into the Economic Storm.

What sources are you currently relying upon in order not to find yourself falling into this Abyss? What are their corresponding contributions to your existing Total Net Worth?

Essential Sources or components for building your Net Worth.

There are four major sources or components that are essential for your financial strength and independence. These are:

1. Primary Residence
2. Savings (all forms) and tax-deferred investments
3. Social Security
4. Pension Plans

As for most Americans, the most important is your home because:
1. It represents the single largest "Investment" that you will most likely make in your lifetime.
2. It can be integrated through the proper plan with the other sources to make your net worth grow stronger and safer than all your sources working separately (or not working well at all).

Your Top Financial Goals and a Life-Lasting Standard of Living are Within Reach

By eliminating the above causes and thus, the effects, you will be able to produce a robust Net Worth, and thus, you will enjoy the same or higher Standard of Living and life-lasting financial security.

You will be able to realize, as millions of Americans are realizing, your financial goals and sustain the comforts that you are anticipating.

You will be able to do what these Americans are doing. They are actively and consistently working through an asset plan that optimizes their Essential Sources of Net Worth.

Why is Planning So Vital For You?
 
Planning, and persistent, relevant actions will bring to you what you want out of life. This is the best way to chart the consequences that you would like to enjoy.

Your plan is a guide to your thoughts. Once your action steps are defined and organized, you will create the consequences that you visualize for yourself.

Remember the wisdom of Harry S. Truman and Anne Frank .

Before the Right Plan can be developed for you, you need to ask the following Key Questions:

I. How does a $12,000 a year cash drain compare to what I save each year?
II.  How much do I have saved up to now?
III. How much am I going to need?
IV. How much more in savings would I have later, if I minimize this cash drain that I face every year?
V. How do I minimize this drain?
VI. What can I do to stop my home from being a liability?
VII. How can I make my home an investment and feel the satisfaction that I envision?
VIII. Why is it so risky to depend on the appreciation as my main objective from home ownership part of my net worth projections?

Constructing your Asset Plan

New Home
By allowing me to help you buy a new home in the Metropolitan Phoenix area, it will enable us to take the initial, right step. I will begin the development of your Asset Plan that will bring into being, the maximum benefit towards your Net Worth and meet higher expectations.

Existing Home
Asset planning is just as vital when you are already a homeowner. The main difference is that it´s more urgent because you will have less time to reach the full potential growth of your combined assets, and thus of your Net Worth. I am also available to assist you in developing your Asset Plan.

Extensive Knowledge & Experience

Over the last 20 years, I have been working with my clients as a Financial Planner, Mortgage Broker, and Commercial and Residential Realtor. 

As an Asset Planner, I integrate all these experiences and disciplines to look after the best interests of my clients.

In the same manner, I will successfully help you to make the right choices in your journey and create the circumstances you may only dream about.

For further details on how I can be of service, please contact me at

Anthony Pullenza
Equity Plus LLC
602-361-2437
Apullenza1@earthlink.net