Below is an email sent to me by someone (most likely a United First Financial Agent who sells the Money Merge Account, or MMA) as a response to my posts from my blog on ActiveRain. It proves that they have little understanding of "mortgage planning" and how beneficial these strategies can be.
Please keep in mind that there is no "magic bullet" strategy nor is there a "one size fits all" one. Additionally, this individual, much like other opponents, believes that equity harvesting and other mortgage planning strategies are proposed to keep homeowners in debt and make lots of money, showing a complete misunderstanding of what certified mortgage planners truly do.
Message details:
From: Mark Smith
Email: marksm27@yahoo.com
"I just read your rather misleading example of how equity harvesting outperforms the Money Merge Account. Your example leaves many factors out in regards to the MMA. Your plan also leaves your customers perpetually in debt to their mortgage company for the rest of their lives. The "power of compound interest" sucks people's bank accounts dry. It does nothing to help the consumer. It does everything to help the mortgage company. Thats why people like you can make the kind of money you do to pose in pretty pictures next to your jet. People like you are what is wrong with the banking industry today. You sir, are an idiot."
OK, so let's digest this guy's comments and see who is the "village idiot" in reality.
Was I misleading? No, numbers do not lie and it is a numbers game. I will admit that one did not provide an 100% accurate comparison, but that the outcome was correct even if it was not as drastic. Most comparisons I have done have been about actual clients which I helped determine their best course of action based on their specific situation, so they are "real world" examples.
Claims I left many factors out in regards to the MMA? Maybe, but I highly doubt it, other than the fact that "software" is needed for those needing to be "spoon fed" for the program to work. I have had many personal attacks on my level of expertise regarding these programs, so I will be posting how these programs work (exactly) as an excerpt from my upcoming book. One thing to note, I do like these types of programs for some and I do offer them to those who decide to use that strategy after being fully educated on ALL options available to them.
Does equity harvesting or mortgage planning "suck peoples bank accounts dry"? This is probably the stupidest thing I have ever heard someone imply that I, or anyone in mortgage planning for that matter, are trying to do. In fact, we implement strategies that grow bank accounts (as well as investments). Our goal is to help clients increase their liquidity (cash is king), safety and also rate of return. I never suggest a strategy that a client does not fully understand and agree that is in their best interests.
"Your plan also leaves customers perpetually in debt to the mortgage company for the rest of their lives"? That depends on the individual first and foremost. Can you explain why about 80% of those wealthy enough to pay off their mortgage with the stroke of a pen decide not to do so? Simply put, if it makes financial sense for you to keep the mortgage and make more money elsewhere than what it costs, does it really matter that you carry some debt. You are, in essence, doing exactly what the banks do...borrow at a low rate and then earn at a higher rate. If the banks can make money doing that, why can't you?
"That's why people like you can make the kind of money you do to pose in pretty pictures next to your jet."? Is this guy for real? I clearly state in my profile on my blog that I also fly airplanes for American Airlines. So the "pretty picture" is me in uniform and the "jet" happened to be a Boeing 767 I was preflighting for a return flight from Paris to New York. Yet another myth my competition tries to use to destroy my character, level of expertise, etc.
Oh, and his final thought..."People like you are what is wrong with the banking industry today. You sir, are an idiot."? Maybe I am. After all, I am trying to educate the American public on how they could use their mortgage as an integral part of their financial and investment plans and who really wants to do that? Being upfront and honest about the various strategies available and how they can be used to meet financial goals is what I strive to do. No bells, whistles, magic, etc. Simply show what is available and how the numbers play out.
Are their risks? Every strategy has risks and rewards. The goal is to match a strategy to meet you and your needs. Thus, we minimize risks and maximize rewards, even if a mortgage acceleration program is what is best for you. Don't rely solely on me though. Seek guidance from "qualified" individuals, being those who know and understand all strategies, and then decide which is the best strategy for you.
Why do we even recognize those clowns?
I had one e-mailing me (from United First), asking me to define arbitrage. After I explained the term, she insisted it was illegal.
Where, oh where, do they find these people?
Posted by: Brian Brady | September 16, 2007 at 02:13 AM