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Geez....equity harvesting? I am trying to harvest some tomatoes!
Well you better go out and get some of that Tomatoe Insurance!
Equity Harvesting
- Thread starter policy doctor
- Start date
Well you better go out and get some of that Tomatoe Insurance!
Atlas
Expert
Guys,
Lew Nason is a great guy. I have a few friends that use his mortgage protection deal and they both love it and make good money. They both love Lew Nason. This is not Found Money Management. This is selling mortgage protection insurance
http://www.insuranceproshop.com/lifeinsurancemarketing/lifeinsuranceleads.html
All I know is these two guys are doing very well and both making good money. They both really like Lew. As far as his Found Money deal I have no idea about that deal. I'm just telling you what I know about. It seems to be working good for the two I know that are using his system.
Lew Nason is a great guy. I have a few friends that use his mortgage protection deal and they both love it and make good money. They both love Lew Nason. This is not Found Money Management. This is selling mortgage protection insurance
http://www.insuranceproshop.com/lifeinsurancemarketing/lifeinsuranceleads.html
All I know is these two guys are doing very well and both making good money. They both really like Lew. As far as his Found Money deal I have no idea about that deal. I'm just telling you what I know about. It seems to be working good for the two I know that are using his system.
Whatever you want to call it, stripping equity absolutely makes sense, but of course, only for the right investor. First, advocating home equity be stripped and invested in stocks is (by my understanding) not allowed for registered reps.
Doug Andrew and his crowd (he is financially tied to LifePro in San Diego, they are his "preferred FMO" so to speak, and a whole host of mortgage "planners", with whom he also has financial interests, well, actually Doug Andrew has created yet another Utah-based MLM scheme, need I say more?) recommend very complicated products and use the tagline "you have to look at this on a 10-15 year basis" - as if you are going to be able to tell someone, look, just borrow this on your home, stick it in life insurance, and wait 10-15 years before you can get it back without surrender charges! What a crock.
Midland National used to be a pretty big carrier in this arena, but Douggie Andrew can't get a piece of it so he and LifePro don't recommend it. A number of years back, however, (my understanding is) that Midland National got burned by a few registered reps who used some of the equity strip and invested directly in the stock market (before the NASD rules came out), and guess when that was? Before the market tanked. Well, fellas, litigation changes a lot of things. Midland just got caught up in it. Likely deep pockets. However, if you can get the client to properly disclose where there money comes from, instead of having the escrow check directly payable to the insurance company, there are workarounds.
I would argue that Middle America needs this type of financial plan the most, but Middle America isn't prepared for the discipline it requires.
Doug Andrew and his crowd (he is financially tied to LifePro in San Diego, they are his "preferred FMO" so to speak, and a whole host of mortgage "planners", with whom he also has financial interests, well, actually Doug Andrew has created yet another Utah-based MLM scheme, need I say more?) recommend very complicated products and use the tagline "you have to look at this on a 10-15 year basis" - as if you are going to be able to tell someone, look, just borrow this on your home, stick it in life insurance, and wait 10-15 years before you can get it back without surrender charges! What a crock.
Midland National used to be a pretty big carrier in this arena, but Douggie Andrew can't get a piece of it so he and LifePro don't recommend it. A number of years back, however, (my understanding is) that Midland National got burned by a few registered reps who used some of the equity strip and invested directly in the stock market (before the NASD rules came out), and guess when that was? Before the market tanked. Well, fellas, litigation changes a lot of things. Midland just got caught up in it. Likely deep pockets. However, if you can get the client to properly disclose where there money comes from, instead of having the escrow check directly payable to the insurance company, there are workarounds.
I would argue that Middle America needs this type of financial plan the most, but Middle America isn't prepared for the discipline it requires.
By having the ability to maximize your investment and obtain a suitable ROE.
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I would not agree 100%, but to find people willing or able to devote the discipline in any long range planning is obviously a hit and miss scenario. Yet though, if properly done I don't see how leverageing debt would need all that much discipline. Anyone that can succesfully budget and live within a budget is able to succesfully implement this stragedy plan of action.
I'm familiar with Lew Nason, his "Found Money" theory is interesting but to tell you the truth giving up my favorite morning coffee at the local coffee shop isn't going to happen. People I'm come across isn't going to give up their favorite habits either such as the $5 dollar coffee in the morning as they start their day likely with their co-workers in their morning meetings.
I think the key here, as in making this Equity Planning to succeed several key elements have to be in place.
1. Knowledge and Interest in Homes, such as buying, upkeep along with the ability too move. In other words, people that are emotional tied to their homes and have no desire to move around is unlikely to be good candidates for Equity Stripping even though they are the most at risk.
2. Ability to live on a bugdet, plan a budget and activily work within the budget.
Whenever I come accross people that fit the two key components such as outlined above I suggest they look into such a plan.
- Thread starter
- #16
- 1,704
thank you for those comments on Lew Nason. That is exactly where I got that article from...he emailed it . And in conversation, he did mention the different workshops he has on this subject. It sounds interesting, and in a credit financed society like ours, might make the most sense.
Robert Kyosaki (Rich Dad, Poor Dad) stated we no longer have money. We now have currency. Meaning that once we went off the gold standard, all we have is printed paper. Convert that to a working asset...and cash flow used properly makes you money.
People love concepts....and buy them.
Robert Kyosaki (Rich Dad, Poor Dad) stated we no longer have money. We now have currency. Meaning that once we went off the gold standard, all we have is printed paper. Convert that to a working asset...and cash flow used properly makes you money.
People love concepts....and buy them.
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Dahm....I am still trying to harvest those tomatoes before they spoil on the vine!
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People love concepts....and buy them.
You are right, even if they aren't suitable!
I have worked with a lot of successfull folks over the years and never seen any of them using their home equity to improve their ROE. The numbers might work on paper, but I personally prefer a paid off home and as little debt as possible on my balance sheet. I wonder if any fee only guys recommend this, or CPA's or Attorneys? It's mostly insurance guys isn't it?
You are right, even if they aren't suitable!
I have worked with a lot of successfull folks over the years and never seen any of them using their home equity to improve their ROE. The numbers might work on paper, but I personally prefer a paid off home and as little debt as possible on my balance sheet. I wonder if any fee only guys recommend this, or CPA's or Attorneys? It's mostly insurance guys isn't it?
- Thread starter
- #19
- 1,704
Interesting question about whether other pro's recommend this. One way would be to research their trade journals....new concepts and financial pros and con's are always argued there. But all this takes time....I get so tired of reading our trade materials....can hardly read more.
Insurance people are always looking for new twists to sell more life insurance. Just ran across a concept called Equity Key. I posted this in the senior forum but another twist using life insurance and Future gains on a senior's home.
Insurance people are always looking for new twists to sell more life insurance. Just ran across a concept called Equity Key. I posted this in the senior forum but another twist using life insurance and Future gains on a senior's home.
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Dahm....I am still trying to harvest those tomatoes before they spoil on the vine!
Who is Dahm? Is that your imaginary friend?
