While the ideas in “Missed Fortune” are admirable, the book of the same title did not go into specific details on how a person would lose their mortgage interest deductions for using equity proceeds to fund a cash value life insurance policy. . Under Title 26 Section 163, home equity debt (which includes a refinance with removal of equity) is only deductible up to $100,000 of new debt and limited by the fair market value of the home. Accordingly, if the borrowed funds go into a cash value life insurance policy and you fund it with contemplation of borrowing from the policy, the interest is not deductible.

This may be alright for some folks but full disclosure needs to be done. There are two tactics highlighted in the new book “The 3 Secret Pillars of Wealth” that counteract this adverse situation and creates a more meaningful strategy.

I’d suggest using your HELOC to accelerate the equity in your home.

Today?s Real Estate market means that folks can no longer count on appreciation to build home equity. Those who realize that they need to pay down their current mortgage debt are looking for alternate ways to aggressively (yet safely) build equity.

And they’ve discovered a perfect online system to do that; they can focus on their wealth accumulation goals while accelerating their equity simply by using a Home Equity Line of Credit (HELOC) to ?power? this ?financial solutions? program.

A typical 30 year loan (of whatever type) can be paid down in 1/3 to 1/2 the time ? it’s a great way to save *huge* amounts of income by eliminating a mortgage amortization front-end interest load. (On a million-plus dollar home, I’ve personally seen where this particular program will save the homeowner $750,000 in interest charges!)

And the best thing ? homeowners don?t have to refinance their existing mortgage or make (little or no) adjustments to their lifestyle.

I?d be happy to provide further details?

The ‘blessing’ is that they didn’t borrow beyond the resale value of the home, thus trapping them in the mortgage.

Selling is a good strategy in retirement. Borrowing? Not so much. The elderly are supposed to be the lenders to the young , not borrowers.

I disagree that the downturn is a blessing to a couple near retirement who instead of diversifying their investments kept their “nest egg” locked up in a large home with lots of equity who now have the potential to watch 30% of their “retirement” disappear because of a poor investment strategy – for them its not a blessing, its a disaster.

For those who planned a large equity “withdrawal” (let’s call a spade a spade, okay? It’s borrowing AGAINST equity, NOT cashing it out), the downturn happening before they refinance is a blessing in disguise.