This aspect of the Legacy System is one of the major points of differences to other strategies. Pay off debt!
As explained in the non-tax deductible debt section, there’s good debt and bad debt. Good debt is used to acquire assets that produce you money, while bad debt is for personal loans, car loans and credit cards, used for liabilities which go down in value. The Legacy System demonstrates to you how you can pay down and ultimately pay off non-tax deductible debt first, and then all of your other good debt, by utilising the rental income and tax income to target the debt.
While you invest in residential real estate, you’ll also implement a debt reduction strategy to simultaneously pay down and pay off your debt as you go. The debt reduction system is established in how the assets are originally structured and funded.
The Legacy System leverages good debt to build your wealth and the new income streams reduce the debt you hold.
You start by applying the income from your new assets towards your bad debts, such as your home’s mortgage and then target personal loans, credit cards and car loans. Soon you won’t have any bad debt.
And that’s how you pay off your family home’s mortgage in record time! Our finance strategists will show you how it’s done.
Once all the bad debt is paid off, you can begin applying the income towards paying off the portfolio.
The roadmap we set for you will eventually have all debt paid off. We target one loan at a time and move from bad debt to good debt. By the time you reach retirement, the portfolio will be debt free, preparing you for a self-funded retirement.
