Common Questions & Answers
Other Q&A coming soon! Send
us your questions!
1. Can you explain what the main
"Wealth Building" product is all about?
Using some of the largest and best financial
institutions in the country, we assemble mortgage, life insurance and safer
investment into one package. Using one of the most common but also most overseen
asset, i.e. a home, we offer our clients the "limousine" in financial
services. In most cases, we can reduce their mortgage rate, eliminate all
debts, insure them in case something bad happens, and invest the savings into an
Indexed Annuity that guarantees a great rate of return (9% at the time of this
update). All that without the client having to come up with one more penny than
is present outlaid. 
2. Explain about the interest rate and
start rate?
We offer our clients different ways to
participate. For example, we can negotiate a reduced interest rate for a certain
period of time, or even a no-interest loan for that same period. Our most
popular program works like this: a start-rate (a reduced rate a client is paying
for normally a year) is locked in at between 1.25% - 1.95% depending on the
credit score. The difference of the payment between that start-rate (let's say
$1,000) and the payment that was made before the change (let's say $1,500) is
reinvested in a fixed annuity guaranteed at 9%, and a Universal Whole life
policy attached with a high death benefit that will pay off the house, debts,
etc. in case of a death (all tax free). Although the start-rate can be as
little as 1%, the monthly payment will go up year after year. The maximum it
will go up is by 7.5% of the payment (i.e. by $70 in the present example), but
could be as little as 4.2%. Even with that increase, the payments are still much
lower than with the previous mortgage.
3. What about the reverse amortization?
Reverse amortization happens when you pay less
interest on your mortgage payments than the actual interest amount you are being
charged. In our programs we call this a "part-interest payment
mortgage". It is actually a good thing in the way we work: the amount
that you would normally pay for interest is invested at a higher rate of return.
At a later date, you can then catch up with the un-paid interest ad still be
much ahead of the financial game with savings you would not have otherwise. This
approach has been used for years by savvy investors and many "rich"
people.
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4. What are the criteria to qualify for
your Wealth Building program?
We offer different program, but to participate in
the most popular one, here what is needed:
- own a home
- be able to verify employment (or 2 year tax
returns if self employed)
- have a credit score of 620 or better
- be in reasonable good health
HOWEVER, we can access program to help
people in almost any situation, from young to less young, from rich to not so
rich, from extremely poor credit to excellent credit.
5. What about first time buyers,
We offer great programs for first-time home
buyers - with as little as 10% down-payment.
6. What about people that already have
a high loan to value (financed at 80% or more)
We have plans that will cover up to 125%
Loan-to-Value (LTV).
7. I have already paid off my home, how
can I benefit from your programs?
We have several clients with homes with a clear
title.
8. Who does the actual physical
examination when required for a life policy?
The insurance companies send their own people
(employees or sub-contractors). They take care of that whole process.
9. Who does the appraisals?
The bank takes care of this! The cost is covered
by the bank, passed on to the client as part of the total refinancing
costs.
10. If an appraisal was recently done,
do I need a new one?
The answer is probably yes - however, the request
can be made to use the recent appraisal (less than 6 months).
11. When we arrange to pay off a
client's credit card debt and their automobile, how do we go about it?
At closing, the client receives a "fat
check" - he/she uses that money to pay off his credit card debts, and his
automobile. You can offer to assist him/her in doing it by doing it with them
right on the spot, i.e. having them write the checks to each of the companies
they owe money to. The effect is that right there and then, they feel like
they are finally "debt free". IN the event they have a large
amount of credit card debt, we can refer them to one of our service provider who
can negotiate the debt for the client.
12. What
is the smartest choice for best return and least tax programs?
Unfortunately we cannot answer that question for
you. Each person has a different financial and tax situation. We recommend you
consult your tax adviser in that regard.
13. How do I reach the Governing entity
in regards to licensing issues in California?
The California Department of Insurance’s (CDI) Producer Licensing Bureau now has a toll-free number available
(see below) for agents, brokers and insurance companies to call the CDI with their licensing concerns. The Producer Licensing Bureau is responsible for licensing agents and brokers who sell insurance in
California, whether they reside or not in California. Other states have similar
government entity.
Producer Licensing Bureau
1-800-967-9331
7:00 a.m. to 5:00 p.m. PST/PDT
Monday through Friday
(except Holidays)
Online: http://www.insurance.ca.gov
14. What is the MasterChoice Insurance product you are marketing?
Created for individuals seeking flexibility with
their insurance, MasterChoice enables policyholders to resist the twists and
turns of life with guaranteed protection. MasterChoice is an equity-indexed
universal life product that provides a guaranteed death benefit and may also
allow policyholders to participate in the positive performance of the stock
market. Click here for details.
15. What is the COSI?
COSI stands for Cost Of Savings Index. Banks
receive money from consumers in the form of deposits and lends money as home or other loans. The interest rates in effect on these deposits are the basis for the COSI index. It is not based on actual interest paid, but rather the weighted annualized average of all interest rates in effect on
the bank deposit accounts on the last day of each month.
16. I have questions about the
loans/mortgages - where do I go?
First look up our Q&A
About Loans, then email us if you don't find what you're looking for.
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