|The Secret Power Within Your Mortgage
|Use Historically Proven Methods To Protect Your Net Worth Against A Fall In The Dollar & Prosper During Inflationary Times
(This is a mirror webpage, the main website for this book is at MortgageSecretPower.com The links do not work on this page, but work just fine on the home page of that site. )
The Secret Power Within Your Mortgage is a unique book that is not about how to get the biggest or lowest cost mortgage – but how to use your mortgage to protect and possibly increase your net worth during times of economic turmoil. It is about the use of historically proven methods that are available to the average homeowner, updated with modern financial techniques, and optimized with your insider information about your own life.
|Turning Inflation Directly Into Wealth
|Achieving 44% After-Tax & After-Inflation Gains
|Reversing Inflation Taxes
|Inflation "Tax Shelters"
Many people are justifiably concerned that the value of the dollar may plunge in the decade ahead, for reasons ranging from the budget and trade deficits, to the price of oil, to paying for Baby Boom retirement promises.
To prepare for a possible inflationary future, it helps to understand the inflationary past. Between 1972 and 1982 the dollar lost 57% of its value. The Dow stood at 929 in June of 1972, and by June of 1982 it had dropped to a nominal 812. When we adjust for inflation, the Dow Jones Industrial Average actually dropped from 929 to about 350 (in 1972 dollars), meaning it lost 62% of its value (exclusive of dividends). Stock investors had lost almost two-thirds of their portfolios to inflation and economic turmoil, but at least they had one small consolation – they were doing better than the bond investors.
At the same time, the average American in an average home with an average mortgage saw their home equity increase from 25% of their mortgage in 1972, to 500% in 1982 – as a direct result of the dollar losing 57% of its value. In one important aspect of their lives, out-of-control inflation was lucratively profitable for many millions of average American households. Inflation shredded both the value of their mortgages relative to their houses, and the size of their mortgage payments relative to their income – effectively “giving” them most of the value of their houses for free. Mortgage borrower wealth soared even as stock and bond investor wealth plunged – and understanding how best to turn this relationship to your advantage could be the key to your personal financial future.
|To Learn More About A Free Mini-Course On Turning Inflation Into Wealth, Click Here
It is a basic economics principle that substantial inflation can redistribute wealth from creditors to debtors. Economically, the 70s represented one of the largest transfers of wealth from institutions to individuals in history, taking place through the destruction of the value of $2 trillion in mortgages (2006 dollars). This redistribution of wealth bankrupted the Savings & Loan industry even as it simultaneously slashed the real value of the debts of millions of Americans and made them “house rich” – a benefit that still forms the core of their net worth for many older Americans today.
Unfortunately, many millions of households are currently in the “wrong” kind of mortgage debt, with terms that will financially destroy them if inflation and economic turmoil return. Many other people are doing everything they can to minimize the protection their personal mortgage hedge fund can offer them – because they don’t even realize it exists. For most people, their mortgage dwarfs their individual investments, both in size and in impact on their financial future – yet they spend less time trying to understand a $250,000, 30-year mortgage than they do a $5,000 stock investment they will hold for six months.
The risk to you is that one or more of the financial storms currently on the horizon do strike the economy and the dollar, with potentially devastating results for your net worth. The reward for you is a historically proven net worth builder that has benefited millions of households, updated with modern financial techniques and optimized with personalized applications for your situation, that could be worth as much as $50,000 to $300,000 or more to you – if you make better mortgage decisions because of what you learn in this book. The cost to you of that knowledge is $20 - $30 ($19.95 e-book, $29.95 print edition) – the price of a good lunch. Do your own risk/reward analysis, and discover why this new website for a new book jumped over nearly a million other web pages to go from zero to Number One on Google in barely 2 weeks (as documented here).
The Secret Power Within Your Mortgage is a 200 page book that shows the average homeowner how to turn the combination of inflation and their mortgage into their personal profit center – without losing their shirt if the future doesn’t turn out to inflationary after all. In this book you will find:
A detailed review of financial history, that shows you step by step, exactly how the average American in an average home in an average mortgage saw their home equity increase from 25% of their mortgage in 1972, to 500% in 1982 – as a direct result of the dollar losing 57% of its value (this free historical study is included in the free mini-course here).
Using simple, common sense examples, you will learn just what “hedges” and “shorts” are, why hedging is the opposite of speculation, and how these concepts can help us thrive in a time of inflation, whether we are investors or not (Chapter 4, a full book table of contents can be found with the sample chapter).
We will explore how we can use the mortgage hedge to effectively help subsidize our lifestyle in a time of inflation – as millions did in the 70s and 80s (Chapter 3).
We will discuss what real financial protection is, and the differences between avoiding some risks, and deliberately offsetting other risks that can’t be avoided (Chapter 5).
If you are an investor, we will learn how to turn the mortgage on your house into your own personal hedge fund, and how to use carefully selected liability management as a form of portfolio insurance for your assets (Chapters 8 & 10) .
We will look at what happens with our hedge if there is nothing to worry about after all. If inflation stays low and the economic weather stays warm and sunny – we will uncover some unique and highly positive advantages to using the mortgage hedge strategy, and the historically demonstrated reasons why it doesn’t hurt us when rates fall, even while it helps us if rates rise (Chapter 9).
We will explore how the mortgage hedge works in periods of low, significant, high and very high inflation – and how the effectiveness of the hedge can vary with homeowners in various circumstances (Chapters 6 & 7).
We will learn about the current workers for whom mortgage hedges are a very bad idea – and the types of homeowners who have the most to gain (Chapters 11, 12 & 13).
We will discuss the prudent use of mortgages in retirement, and learn why a mortgage hedge is a bad idea for many retirees. We will also explore why a mortgage hedge is an essential financial survival strategy for many other retirees, and is perhaps more important than with any other age group (Chapter 14).
Your mortgage is likely the largest financial contract in your life, and it is a contract whose value is acutely sensitive to your personal circumstances. For professional investors, mortgages represent one of the most popular and carefully studied investments in the world. These investors who go “long” (buy) your mortgage as an investment use highly trained quantitative analysts and sophisticated computer software to try to statistically anticipate your behavior. You don’t need any of this, because you have something much better. You have the insider information they lack – you know who you are and what your life is like. The Secret Power Within Your Mortgage gives you the power to optimize your “short” of your mortgage, to structure your best possible individualized mortgage hedge based on your individual age, job, income, net worth and objectives (Chapters 12 & 13).
Daniel R. Amerman is a Chartered Financial Analyst, with BSBA and MBA degrees in finance, and almost 25 years of experience in working with mortgages and mortgage securities. He is the author of two previous works on mortgage securities that were published by major publishers, books that were praised as being some of the easiest to understand books written on this subject. Mr. Amerman was an investment banking vice president working with distressed savings institutions in the 1980s, and worked with restructuring portfolios totaling billions of dollars, of mortgages whose values had been crushed by inflation. He is also the author of another current book dealing with the upcoming financial challenges posed by the retirement of the Boomers, more information is on the Author page.
Inflation Into Wealth Dedicated Website
This website contains the ideas and opinions of the author. It is a conceptual exploration of
mortgage finance and general economic principles. As with any financial discussion of the future, there
cannot be any absolute certainty.
website does not contain is specific investment, legal, tax or any other form
of professional advice. If specific advice is needed, it
should be sought from an appropriate professional. Any liability, responsibility or warranty for the results
of the application of principles contained in the website, sample chapter and
book, either directly or indirectly, are expressly disclaimed by the
Copyright 2007-2008 by Daniel R. Amerman.