7 yrs
Payoff Time
$311,816
Interest Saved
$206,448
Retirement Income/yr
$311,816
Total Saved
Strategy Comparison
| Current Scenario | MEG Strategy | |
|---|---|---|
| Total Interest Paid | $407,851.44 | $96,035.29 |
| Interest as % of Loan | 131.12% | 29.73% |
| Total Payments | 336 | 83 |
| Years to Pay Off | 28.0 years | 6.92 years |
$311,816.15 in interest savings
The Situation
Business owners with a $311,048 mortgage on a $440,000 home. With 28 years remaining at 7.125% APR and monthly payments of $2,735, they were on track to pay a staggering $407,851 in interest—131% of their original loan amount! Net monthly income: $10,000 with $6,300 in expenses, leaving $3,700 monthly cash flow.
Our Approach
Using a $352,000 credit limit combined with wealth-building IUL (Indexed Universal Life) policies for both spouses. The MEG strategy not only accelerates debt payoff but simultaneously builds tax-advantaged retirement assets. Reduced interest from 131% to just 29.73% of loan—cutting 336 payments down to 83.
The Outcome
Debt-free in 6.92 years instead of 28 years. Saved $311,816 in interest. Created $206,448/year in combined tax-free retirement income starting at age 66 ($92,868 + $113,580). Combined death benefits of $1,897,878 with chronic illness protection of $301,096 and critical illness coverage of $41,848.
Financial Details
Loan Details
- Home Value
- $440,000
- Mortgage Balance
- $311,048
- Current APR
- 7.125%
- Line of Credit Rate
- 7.50%
- Months Remaining
- 336 (28.0 years)
- Monthly Payment
- $2,735.00
- Credit Limit Used
- $352,000
Income & Cash Flow
- Net Monthly Income
- $10,000
- Monthly Expenses
- $6,300
- Monthly Cash Flow
- $3,700
- Total Debt
- $311,048
Wealth Building Benefits
Tax-advantaged retirement income and protection built into the strategy
Client #1
- Death Benefit
- $800,000
- Tax-Free Retirement Income
- $92,868/year
- Starting Age
- 66
- Chronic Illness Benefit
- $139,432
- Critical Illness Lump Sum
- $21,457
Client #2
- Death Benefit
- $1,097,878
- Tax-Free Retirement Income
- $113,580/year
- Starting Age
- 66
- Chronic Illness Benefit
- $161,664
- Critical Illness Lump Sum
- $20,391
Combined Tax-Free Retirement Income
$206,448/year
Key Results
$311,816
Interest Saved
21 Years
Paid Off Early
7 Years
Total to Mortgage Freedom
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