3 yrs
Payoff Time
$98,761
Interest Saved
$81,060
Retirement Income/yr
$9,218
Additional Savings
Strategy Comparison
| Current Scenario | MEG Strategy | |
|---|---|---|
| Total Interest Paid | $110,373.90 | $11,612.54 |
| Interest as % of Loan | 33.45% | 3.40% |
| Total Payments | 240 | 34 |
| Years to Pay Off | 20.0 years | 2.83 years |
$98,761.36 in interest savings
The Situation
An entrepreneur couple with a $280,000 mortgage on a $500,000 home. With 20 years remaining at 3.25% APR and $2,000 monthly payments, they faced $110,374 in total interest (33.45% of loan). They also had a $50,000 car loan at 5.90%. Total debt: $330,000. Net monthly income of $9,000 with $7,000 in expenses left only $2,000 monthly cash flow.
Our Approach
Leveraged a $450,000 credit limit with wealth-building IUL policies for both spouses. Despite tight cash flow, the MEG strategy optimized their payments to slash interest from 33.45% to just 3.40% of the loan—reducing 240 payments to only 34.
The Outcome
All debt paid off in 2.83 years instead of 20 years. Saved $98,761 in mortgage interest plus $9,218 on the car loan. Created $81,060/year in combined retirement income starting at age 65 ($39,708 + $41,352). Death benefits totaling $1,447,046 with $723,523 in chronic illness protection and $361,762 in critical illness coverage.
Financial Details
Loan Details
- Home Value
- $500,000
- Mortgage Balance
- $280,000
- Current APR
- 3.250%
- Line of Credit Rate
- 7.50%
- Months Remaining
- 240 (20.0 years)
- Monthly Payment
- $2,000.00
- Credit Limit Used
- $450,000
Income & Cash Flow
- Net Monthly Income
- $9,000
- Monthly Expenses
- $7,000
- Monthly Cash Flow
- $2,000
- Total Debt
- $330,000
Additional Debts Eliminated
| Type | Balance | Monthly Payment | Interest Rate |
|---|---|---|---|
| Car | $50,000.00 | $850 | 5.90% |
$9,218.35 saved on additional loans
Wealth Building Benefits
Tax-advantaged retirement income and protection built into the strategy
Client #1
- Death Benefit
- $662,880
- Tax-Free Retirement Income
- $39,708/year
- Starting Age
- 65
- Chronic Illness Benefit
- $331,440
- Critical Illness Lump Sum
- $165,720
Client #2
- Death Benefit
- $784,166
- Tax-Free Retirement Income
- $41,352/year
- Starting Age
- 65
- Chronic Illness Benefit
- $392,083
- Critical Illness Lump Sum
- $196,042
Combined Tax-Free Retirement Income
$81,060/year
Key Results
$98,761
Interest Saved
17 Years
Paid Off Early
3 Years
Total to Mortgage Freedom
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