October 19, 2009
President Barack Obama
The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500
REGARDING: META-PLAN http://billmcmillan.com/META-PLAN.html
Dear President Barack Obama,
META-PLAN represents a dramatic change in the operation of home mortgages. The goal of META-PLAN is not to pay for the mortgaged home, but to turn as much capital as possible, into investments in the family’s portfolio, which could accumulate to over $75 million in investment growth. Homes valued at $220,000 or less could be accommodated by a family’s two standard TFSA or ROTH IRA accounts.
Since the mortgage is paid in full, in cash, at the end of 25 years, a 100 year amortization period is of no significance, except to optimize the mortgage for the highest investment return or for the lowest payment.
$220,000 META-PLAN CONVENTIONAL 25 YEAR 100 YEAR
25 Year Amortization Amortization Amortization
Fixed Monthly Payment $ 1,161 $ 1,161 $ 747
Total Interest Paid $ 128,372 $ 392,547 $ 396,702
Total Tax Refund $ 44,930 $ 71,190 $ 144,559
Personal Worth at 25 Years $ 709,522 $ 3,795.024 $ 2,722,788
Personal Worth at 50 Years $ 1,813,751 $ 104,624,730 $ 78,604,050
TAX FREE TAX FREE
Investment in the Economy ZERO $ 104,624,730 $ 78,604,050
A META-PLAN with a 100 year amortization will reduce the legitimate qualification requirement and the monthly cost of home ownership, while at the same time directing capital to the family's investment portfolio for substantial retirement savings, allowing millions more families to genuinely qualify for home ownership many years earlier than they otherwise would. META-PLAN enables the family to accumulate over $75 million in their investment portfolio without spending a cent more than their reduced META-PLAN mortgage payment, allowing many thousands of dollars in extra disposable income, every year, for the needs of the family.
META-PLAN would also provide a dramatic stimulus to the construction and manufacturing sectors, while infusing the economy with many millions of dollars per plan, by investing in over 85% of the North American stock market; all without the family having to spend a cent more than their reduced META-PLAN mortgage payment.
If META-PLAN is not approved for sponsorship by the government, it could probably be managed by individual families who have at least 25% equity in their home.
All fees for administration of the mortgage and management of the investment fund are generated from within the META-PLAN system, at no additional cost to the client, and the administration of the META-PLAN mortgage and portfolio would be handled by existing financial institutions, incurring no additional expenditure on the part of the government or the client. Government Tax revenues will flow from increased spending, higher employment, increased production, and an improved economy.
Respectfully,
_____________________________
William McMillan
Attachments
cc Stephen Harper
Dalton McGuinty,
META-PLAN
SELF ADMINISTERED
1. THE HOMEOWNERS WOULD PROBABLY HAVE TO HAVE AT LEAST 25% CURRENT EQUITY IN THEIR HOME.
2. THE MORTGAGE AMOUNT WOULD BE INCREASED ANNUALLY IN TANDEM WITH REAL ESTATE INFLATION.
3. MORTAGE AMORTIZATION PERIODS WOULD ALSO BE EXTENDED, ANNUALLY TO THEIR ORIGINAL LENGTH.
4. THE FAMILY'S MORTGAGE PAYMENT WOULD REMAIN UNCHANGED FOR THE 25 YEAR PAYMENT PERIOD.
5. A $220,000 HOME WOULD USE ABOUT THE CONTRIBUTION ROOM OF TWO TFSA / ROTH IRA ACCOUNTS.
6. ALL EQUITY AND INFLATION, TOGETHER WITH THE TAX-FREE ACCOUNT GROWTH, WOULD BE REINVESTED.
7. A $220,000 META-PLAN MORTGAGE COULD GROW TO OVER $100 MILLION TAX FREE, IN A 50 YEAR PERIOD.
GOVERNMENT SPONSORED
1. THE PLAN WOULD BE RUN BY APPROVED FINANCIAL INSTITUTIONS AT NO COST TO THE GOVERNMENT.
2. HOME OWNERSHIP COST WOULD BE REDUCED WHILE SIMULTANEOUSLY PROVIDING FOR RETIREMENT.
3 LEGITIMATE QUALIFYING INCOME WOULD BE REDUCED BY UP TO 25%, ENABLING MILLIONS MORE TO BUY.
4. A $220,000 HOME GROWS TO OVER $75 MILLION IN THIS FAMILY'S PERSONAL INVESTMENT PORTFOLIO.
5. THE HOMES WOULD CONTINUE AS THE "PRIMARY RESIDENCE", AND THE PLANS, "NON-TRANSFERABLE".
6. THE PLAN COULD BE A LOCKED-IN PLAN, GOVERNMENT PROTECTED AGAINST SHARKS OR PREDATORS.
7. ANY PLAN COULD BE "COLLAPSED" AND "SETTLED" BY A CLIENT OR BY A COURT ORDER AT ANY TIME.
META-PLAN BENEFITS
1. META-PLAN WOULD FUEL CONSTRUCTION AND MANUFACTURING PROVIDING INCREASED EMPLOYMENT.
2. SUBSTANTIAL INVESTMENT IN MOST MAJOR COMPANIES WOULD INCREASE GOVERNMENT TAX REVENUE.
3. META-PLAN MORTGAGES WOULD BE MUCH MORE SECURE FOR PARTICIPATING FINANCIAL INSTITUTIONS.
4. EACH PORTFOLIO WOULD INJECT MANY MILLIONS OF DOLLARS INTO THE NORTH AMERICAN ECONOMIES.
5. IN A REAL ESTATE MARKET COLLAPSE, THE PLANHOLDER'S MARKET PORTFOLIO WOULD LOSE NOTHING.
6. A 50% STOCK MARKET COLLAPSE WOULD LEAVE $50 MILLION IN META-PLAN PLANHOLDER PORTFOLIOS.
7. INVESTMENT IN THE SP1500 (ISI) AND THE S&P/TSX, WOULD STIMULATE OVER 85% OF THE N.A. ECONOMY.
The entire conceptual prototype is contained in a one-page spreadsheet, including control of the administrative fees that the approved financial institutions would receive from the plan. The spreadsheet has all the concepts and calculations to operate within the tax rules of both Canada and the United States, and it includes an “Average Home” example.
http://billmcmillan.com/META-PLAN.xls
The META-PLAN spreadsheet is parameter driven; so it is possible to test various scenarios, by simply changing the principal, interest, period, inflation and growth rate, etc., to see what impact it would have on the fees, interest, taxes and “Personal Worth” values. There are “comments” with each parameter to explain its function. The spreadsheet’s formula fields and Visual Basic for Applications (VBA) code are protected, so the META-PLAN spreadsheet cannot be harmed or corrupted.