MISSED FORTUNE 101
TWO WAYS TO STACK UP TO $1,000,000
#1 SEPARATE 100,000 OF EQUITY
BORROWING AT 6% EQUITY REPOSITIONED INVESTING @8.5
(Tax Deductible) 100,00 (Compounding Tax Free)
[1] [2] [3]
NET CUMULATIVE COST DIFFERENCE NETCUMULATIVE GROWTH
@6% ($6000-33.33%) [3-1] @8.5 (less mortgage of $100,000)
|
YEAR |
|
|
|
|
1 |
$4,000 |
$4,500 |
$8,500 |
|
5 |
$20,000 |
$30,336 |
$50,366 |
|
10 |
$40,000 |
$86,098 |
$126,098 |
|
15 |
$60,000 |
$179,974 |
$239,974 |
|
20 |
$80,000 |
$331,205 |
$411,205 |
|
25 |
$100,000 |
$568,676 |
$668,676 |
|
30 |
$120,000 |
$935,825 |
$1,055,825 |
#2 SEPARATE 160,000 OF EQUITY
BORROWING AT 7.5% EQUITY REPOSITIONED INVESTING @7.5
(Tax Deductible) 160,000 (Compounding Tax Free)
[1] [2] [3]
NET CUMULATIVE COST DIFFERENCE NETCUMULATIVE GROWTH
@7.5% ($6000-33.33%) [3-1] @7.5 (less mortgage of $160,000)
|
YEAR |
|
|
|
|
1 |
$8,000 |
$4,000 |
$12,000 |
|
5 |
$40,000 |
$29,701 |
$69,701 |
|
10 |
$80,000 |
$89,765 |
$169,765 |
|
15 |
$120,000 |
$193,420 |
$313,420 |
|
20 |
$160,000 |
$359,656 |
$519,656 |
|
25 |
$200,000 |
$615,734 |
$815,734 |
|
30 |
$240,000 |
$1000,793 |
$1,240,793 |
|