8 yrs
Payoff Time
$141,936
Interest Saved
$143,304
Retirement Income/yr
$141,936
Total Saved
Strategy Comparison
| Current Scenario | MEG Strategy | |
|---|---|---|
| Total Interest Paid | $260,644.18 | $118,707.97 |
| Interest as % of Loan | 75.28% | 33.14% |
| Total Payments | 324 | 97 |
| Years to Pay Off | 27.0 years | 8.08 years |
$141,936.21 in interest savings
The Situation
A self-employed 1099 couple with a $346,251 mortgage on a $450,000 home. With 27 years remaining at 4.625% APR and $2,781 monthly payments, they would pay $260,644 in interest—75.28% of their loan amount. Net monthly income: $12,000 with $9,000 in expenses, leaving only $3,000 monthly cash flow.
Our Approach
Used a $360,000 credit limit with dual wealth-building IUL policies for both spouses to maximize tax-advantaged retirement income. The MEG strategy reduced interest from 75.28% to 33.14% of the loan—cutting 324 payments down to 97.
The Outcome
Mortgage-free in 8.08 years instead of 27 years. Saved $141,936 in interest. Created $143,304/year in combined tax-free retirement income ($69,600 + $73,704) starting at age 65. Combined death benefits of $1,540,329 with $196,022 in chronic illness protection and $52,321 in critical illness coverage.
Financial Details
Loan Details
- Home Value
- $450,000
- Mortgage Balance
- $346,251
- Current APR
- 4.625%
- Line of Credit Rate
- 7.50%
- Months Remaining
- 324 (27.0 years)
- Monthly Payment
- $2,781.00
- Credit Limit Used
- $360,000
Income & Cash Flow
- Net Monthly Income
- $12,000
- Monthly Expenses
- $9,000
- Monthly Cash Flow
- $3,000
- Total Debt
- $346,251
Wealth Building Benefits
Tax-advantaged retirement income and protection built into the strategy
Client #1
- Death Benefit
- $736,835
- Tax-Free Retirement Income
- $69,600/year
- Starting Age
- 65
- Chronic Illness Benefit
- $98,327
- Critical Illness Lump Sum
- $26,849
Client #2
- Death Benefit
- $803,494
- Tax-Free Retirement Income
- $73,704/year
- Starting Age
- 65
- Chronic Illness Benefit
- $97,695
- Critical Illness Lump Sum
- $25,472
Combined Tax-Free Retirement Income
$143,304/year
Key Results
$141,936
Interest Saved
19 Years
Paid Off Early
8 Years
Total to Mortgage Freedom
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