A key objective for many clients is to extinguish as quickly as possible non-deductible home loan debt. Most strategies that aim to achieve this involve either a significant reduction in lifestyle or a high level of risk, both of which are generally unacceptable to most clients. Bob Templeton Financial Group has developed, as a core part of an overall financial plan, a proprietary process that provides the following key attributes:

• Mortgage reduction. The strategy is designed to rapidly repay your private debt (i.e. home mortgage). For example, reducing the term from an original thirty year term to between fifteen and eighteen years would be a reasonable expectation depending on individual circumstances.

• Risk Management. The strategy is designed to minimise risk. Part of the strategy involves access to home equity which is used to buy a diversified portfolio of investments that are heavily biased toward the provision of income. The investment income is then used to make additional home loan repayments above and beyond what your personal cash flow allows. Although risk cannot be completely eliminated with this strategy, purchasing investments for their income characteristics should generally lower risk more than speculating on future price gains, as the income generated by investments is generally more certain then any capital appreciation.

• Tax Effective. The strategy maximises after tax financial position which in turn will assist in accelerating repayment of the home loan debt.

• Builds up investment assets. The strategy not only eliminates non deductible debt but has the effect of building a portfolio of investments. After the debt has been repaid, you will be able to commence using your normal mortgage payments (which will no longer be required) for wealth building strategies.

• No effect on your cash flow. Due to the “self-funding” nature of the strategy, the strategy may be implemented without the need to change your lifestyle by restricting your current spending patterns. You simply continue to pay your existing mortgage repayments. Once the mortgage is repaid, the free cash flow can be used to invest in other assets.

• Ease of management. Once implemented, there is very little input required on your part. We continue to review and manage the strategy to ensure that the maximum equity in your home is committed to the removal of your home mortgage and the accumulation of investment assets