Schon Financial

06/12/2013

How to analyze investment returns on real estate, and an example of using life insurance to purchase an investment properity.

11 Minutes

06/04/2013

The magic of compound interest
It's clear that compounding your interest is important. It should also be just as clear then it's a pretty slow way to build wealth.
But what if you could increase your wealth much quicker and more substantially, all without increasing your risk? Well, you can with the real magic of leverage.
Leverage,
Leverage is what happens when you earn interest on not just your money but also on someone else's money.
Show how you can use this principle of leverage to increase your wealth
You simply entice someone else to lend you the money That you then invest in something that pays you a better rate and wish you were paying on your loan.
Who is going to lend you the money? The Banks
That's right. The same bank where you might otherwise deposit or lend your money is also willing to lend you money for the right investment.
Let's say you borrow hundred thousand dollars from the bank for your business. The bank may charge you 8% interest on the loan. You take this hundred thousand dollars and buy equipment and inventory that will create income of $12,000 per year. You pay the Bank 8% or $8000 in your net income from borrowing this money is $4000. You have just used leverage in the much the same way as the bank.
Instead of putting it into the bank suppose you put it in your business along with the hundred thousand the bank Loaned you!
You end up earning 12% on your thousand dollars +4% on the bank's money.
That's leverage!
Velocity
The key to financial velocity is to keep your money moving. Think about your compound interest with the bank. It wasn't moving. Think about the money you earned using leverage. You earned almost the same amount in the first year of your bank that it would've taken 10 years to earn relying on Solely On compound interest.
You could've earned still more about using the principle of velocity. Think about it this way. Leverage is really just compound interest using somebody else's money. Velocity is a way to increase your leverage.
It's all about momentum. The more you leverage and the faster your reemploy your money, the faster you will build your wealth.

12/12/2012

Great read if you are looking at refinancing or re positioning your home equity.

09/15/2012

Private Reserve Strategy Business Concept
Business Owners and High Net Worth Individuals
Highly successful, unique financing system provides a superior combination of asset protection, access to capital, and tax advantaged wealth.

09/05/2012

05/14/2012

1982: Asked if he wanted to do market research, Steve Jobs said, “No, because customers don’t know what they want until we’ve shown them.”

06/12/2011

Download Mortgage Finance Commentary April 2011 Summary: Economy Expected to Pick Up Later This Year Job Market to Improve Housing to Stay in Funk Refinances to Decrease to $1.07 Trillion Purchases to Increase to and offset the Drop... Purchase applications...

06/12/2011

Net: The paper is really light on substance, and it was written for the retiree that may be emotionally frustrated by a loss of personal wealth that could have already been used to repay mortgage debt. My personal opinion is in line with the authors, but for different reasons. Most 60+ retirees a