What on earth is Mark Zuckerberg thinking? Article Courtesy of The EVG Research Team



Mark Zuckerberg and the New 1%

Bloomberg.com recently pointed out that Mark Zuckerberg gives a new meaning to the 1%.

That’s because the Facebook founder, along with many other members of the ultra-rich, are refinancing their home mortgages at extremely low interest rates.

Mark Zuckerberg’s interest rate for his $7 million home is a reported 1.05%.  This is while the average homeowner is locking in a record low 3.56% thirty-year fixed interest rate.

This brings up an important question about Mark Zuckerberg and the ultra rich…

…why on earth does Zuckerberg, the 40th most wealthy person on earth, need a mortgage?

Why doesn’t he just pay for his home in cash and be debt-free?

Good question, and if you were an Elevation Group member, you would’ve already discovered the answer in a wealth strategy session with EVG expert, Paul (last name for members only).

(Click here to find out more about The Elevation Group and our exclusive wealth strategy sessions on “black box” investment secrets of the ultra-rich.)

Why the Middle Class Hates Debt,
When the Rich and Poor Welcome it


To a rising member of the middle class who was taught to avoid debt, paying interest on a mortgage when you could buy a house outright seems like madness.

But that’s exactly what the ultra-rich do.  The rich, and poor, don’t mind paying interest – although for different reasons.

The poor usually pile on debt out of necessity, ignorance or plain ol’ lack of discipline. They may want immediate satisfaction. And if they lose control and must file bankruptcy, well, they didn’t have much to lose in the first place.

The rich, on the other hand, take on unnecessary debt because it’s the smart thing to do.

Strategic Debt is the ‘Dirty Little Secret’ 
of Millionaires and Billionaires


Here’s why taking on debt can be smart.

First of all, with just the numbers the government is admitting, we’re averaging a 2.35% inflation rate in 2012.  So borrowing under that number acts like a negative interest rate. 

A negative interest rate means the dollar amount you borrowed gets eaten away by inflation faster than the amount you pay in interest.  

So borrowing for a rate under the average inflation rate is almost like getting paid to borrow money – a no-brainer.

But second of all, there’s this magic word the rich know called “leverage.”

If they can leverage their credit and home to borrow money at a low interest-rate, that gives them the liquidity and opportunity to direct their cash into higher yielding investments.

Meaning, why avoid borrowing at 1-3% interest if you could make a return of 3-10% with the borrowed money?

Sure, Mark Zuckerberg could pay $7,000,000 cash without blinking an eye. In fact, the way Facebook’s stock fluctuates, I’m sure his wealth increases or decreases by millions often.

But it makes no sense to pay $7,000,000 for a home when he could have that money working for him and earning anywhere from 3% to 10% or even higher.

Works For You Too!

And this isn’t just for the rich.

Many members of the middle-class will throw in an extra $100 or two to pay down their mortgage early.

But they’re not doing themselves any favors. 

If instead of paying off that low-interest mortgage faster, you invested in even a low-risk, consistent-return investment like an annuity – over 30 years you could make hundreds of thousands dollars more than you save in interest.

Our EVG expert, Paul (last name for members only), gives an example to help you see the numbers more clearly.

He shows what happens to two people 30 years after they start paying their mortgage. 

The first person paid off his mortgage in less than 15 years and saved a fortune in interest.  

The second person paid their mortgage off in 30 years and used the extra money to invest modestly. And she ended up $501,142 richer than the first person – without taking into account her extra tax savings.

And Remember the Penny

To really drive the point home, Paul tells the story of a penny that doubles every day for 30 days.  He asks if you’d rather have a penny that doubles every day for 30 days, or $100,000.

And then demonstrates that those who took the $100,000 were suckers.

A penny that doubles every day for 30 days is $10,737,418.24.

This penny helps you remember that leveraging the money you have NOW to earn compounding interest – where you earn interest on interest you’ve earned – is better than paying off simple interest – where you only pay interest on the principle.

The ultra-rich know this.  But the middle-class is just finding out, thanks to The Elevation Group.

If you’d like to find out more about The Elevation Group and discover how to leverage money and debt strategically – just like the ultra-rich do – go here now:


Your Partner in Prosperity,

The EVG Research Team

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