Saving for the Future
In America today, there is an urgent need to correct the shortfall in retirement savings and long-term planning that threatens to create an unprecedented liquidity crises for retirees and aging Baby Boomers.
If a disproportionate amount of your net worth is locked-up in your home, an EARNSM empowers you to achieve greater diversification of your investment portfolio by converting a portion of your home value into cash, which may then be allocated among other asset classes. An EARNSM is the only financial instrument that allows you to solve many financial planning challenges for:
Baby Boomers – Through an EARN, a homeowner can convert a previously illiquid asset (home equity) into an investment opportunity to diversify their portfolio for future retirement income.
Retirees – Rather than initiating a reverse mortgage or selling a home outright, an EARN may be used to fund an immediate income stream such as a mutual fund with systematic withdrawals or an annuity with lifetime monthly payments.
College Funding – Homeowners with sufficient equity can obtain an EARN to fund college without cash flow strain.
Illustration
How an EARN Diversifies your Financial Portfolio
In the example below, the homeowner’s home represents over half of his/her financial portfolio. By using an EARN, the homeowner converts 30% of the home value to be made available for redirecting into mutual funds, annuities, stocks, bonds, and/or cash to create greater diversification within the portfolio.
| Without EARN | With 30% EARN | |
| Home Value | $780,000 | $780,000 |
| Mortgage | $300,000 | $300,000 |
| EARN | — | $234,000 (30% of home value) |
| Home Equity | $480,000 | $246,000 |
| Available for Investment (Stocks, bonds, and cash) |
$320,000 | $554,000 |
This is illustrated graphically below:
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Without EARN |
With 30% EARN |