Blueprint for Success

Professional Planning Services custom blueprint for your successful home equity management is listed below. Your home is very likely the most important personal investment you may have, and is the “bank vault” that holds your single largest asset – your equity. This asset can become your greatest tool for building wealth.

We begin by unleashing your equity through separating the cash out of your real estate and utilizing the appropriate mortgage. Then we optimize the seldom understood power of a tax-advantaged, cash value life insurance policy to direct you towards your financial goals. Properly structured, your managed equity will increase your liquidity, safety and rate of return.

• Liquidity – Putting your home’s equity in a position of liquidity enables you to act instead of react. Whether it’s a change in market conditions, disaster, financial emergency, or professional opportunity, you have access to your equity.

• Safety – By separating as much equity from your house as is feasible, you can achieve greater safety of principal.

• Rate of Return – Separating equity and putting it in a position of growth allows otherwise idle dollars to earn a rate of return.

Successful home equity management allows for other important financial objectives.

Cash Flow Management
For many people, it may seem impossible to allocate a large sum of cash solely for financial planning - hundreds of thousands of dollars are simply not lying around. However, successful asset optimization allows almost any homeowner to employ a large sum of cash through an installment strategy – in a manner that can fit his or her budget:

• You are, in effect, transforming your house payment into your investment or your retirement fund contribution.
• Successful equity management provides for systematic savings that can enhance tomorrow’s long-term results without increasing today’s outflows.

Credit Management
Your good credit is a precious commodity, and Professional Planning Services equity management strategy provides for wise credit management. With a portion of your equity in a position of liquidity:

• You should have the ability to prevent threats to your credit, such as getting behind on your mortgage or a brief interruption in employment.
• You can dip into your liquid cushion to maintain timely monthly payments if need arises. (Isn’t it preferable to have a slightly higher house payment with a liquid side fund than a slightly lower house payment with not liquidity-especially if personal needs or professional opportunities arise.) 

Asset Management
Controlling your home equity is smart asset management for several reasons:

• It increases liquidity, safety, and rate of return.
• It also allows you to gain total control of your cash.
• You can establish an emergency fund.
• You can use the strategy as a hedge against inflation.
• You can establish a pre-funded retirement strategy.

Risk Management
Managing your home equity properly is also good risk management. If you employ your equity in a properly structured insurance contract, you accomplish several things:

• You increase your equity’s position of safety.
• The insurance contract can be a source of tax-favored income when needed.
• The contract can also replace the asset at death, while also allowing access to liquid funds.
• The contract can be structured to supplement your income should you become disabled.

Tax Planning
While it is essential that you consult your own tax advisor for your personal situation, home equity management also allows for strategic tax planning:

• It can potentially provide for greater interest deductions.
• Through properly structured life insurance contracts, it can allow for tax-deferred earnings and tax-free access to your liquid equity.
• Should you die, your tax-advantaged proceeds can pass to your beneficiaries income tax-free.
• You can possibly avoid unnecessary tax with a strategic roll-out of qualified funds through mortgage interest offsets.

Estate Planning
Successful equity management is an excellent estate-planning tool:

• Its wise use of properly structured life insurance multiplies the estate through the death benefit.
• Equity repositioned to a properly structured life insurance contract provides probate-free death benefits for beneficiaries.

 

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