Professional financial strategist Dave Ramsey has revealed that normal Americans can become millionaires by investing consistently in growth stock and by paying off their homes.
Between November 17, 2017 and January 31, 2018, his company, Ramsey Solutions, surveyed over 10,000 millionaires across the country, which he claimed was the largest of its kind.
After reviewing the results, Ramsey, who also hosts a nationally syndicated finance-themed radio show, said he identified two straightforward ways that normal people can amass immense wealth.
The first key to becoming a millionaire is to invest routinely in growth-focused mutual funds.
Professional financial strategist Dave Ramsey has revealed that normal Americans can become millionaires by investing consistently in growth stock and by paying off their homes
Between November 17, 2017 and January 31, 2018, his company, Ramsey Solutions, surveyed over 10,000 millionaires across the country, which he claimed was the largest of its kind
In Ramsey’s survey, eight out of the ten millionaires interviewed said that they invested in their company’s 401(k) plan.
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Among the surveyed millionaires, 75 percent of them claimed that investing over a long duration was one of the chief sources of their wealth.
In a video from The Ramsey Show, the financial guru put it bluntly: ”There’s two things that really cause people to get their first $1 million to $5 million in net worth.’
He continued: ‘The two primary things are they invest steadily in their retirement plans and good growth-stock mutual funds, like 401K and Roth IRA.’
According to moneywise, growth mutual funds have performed remarkably well in recent years.
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If an individual invested $10,000 in the Fidelity Growth Company Fund ten years ago, that initial sum of money would now be worth well over $56,000 today, which is a compounded average annual growth rate of 18.8 percent.
The fund boasts some of the most successful tech stocks of the past decade, including Apple and Nvidia.
A smart and prudent investor with a remunerative job could have used this fund to become a millionaire, moneywise pointed out.
If the Fidelity Fund maintained its 18.8 percent growth rate, someone earning $100,000 could set aside 10 percent of their salary and invest it in the fund. Over eighteen years, the investor could amass $1.1 million.
The second critical step an ordinary person can take to become a millionaire is to pay off their home.
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The first key to becoming a millionaire is to invest routinely in growth-focused mutual funds
‘They pay off their home,’ Ramsey said, simply.
According to Ramsey Solutions, the average millionaire paid off their home in only 10.2 years.
In 2022, the proportion of mortgage-free U.S. homes soared to a record high- just short of 40 percent, according to moneywise.
From 2012 to 2022, the rate of mortgage-free homeownership jumped an impressive five percentage points.
Possession of property is a significant means of acquiring wealth for average Americans.
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This step has become more difficult to accomplish in recent years, though.
The second critical step an ordinary person can take to become a millionaire is to pay off their home
In 2022, the housing costs of roughly 12 million renter households surpassed half their income, according to moneywise.
With expenses so high, it has become challenging for ordinary Americans to stow away enough of their savings to make a down payment.
This difficulty has been aggravated by higher mortgage rates. Additionally, there is a dearth of housing units. According to Pew, there is a shortage of four million to seven million units.
In order to make their first $1 million, ordinary Americans will most likely have an easier time investing in mutual funds than they will paying off their homes.
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CMG Financial is a good mortgage lender that offers some less common and unique types of mortgages, including an offset mortgage. It also has down payment assistance and ranks high in customer satisfaction. But its average rates are slightly high.
CMG Financial
Insider’s Rating
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4.24/5
Types of Loans Offered
Conforming, jumbo, FHA, VA, USDA, renovation, HELOC, reverse mortgages, offset mortgage, All In One Loan™
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Pros
Unique mortgage offerings
Up to $6,000 in down payment assistance for eligible borrowers
High customer satisfaction ratings
Cons
Average rates are slightly high
Doesn’t display current rates online
Product Details
Offers home loans in all 50 US states and Washington, DC
Minimum credit score and down payment displayed are for conforming mortgages
Has branches in every state except Alaska, Kansas, Kentucky, North Dakota, and West Virginia
CMG Financial Basics
Nationwide Lending
CMG Financial offers mortgages in all 50 U.S. states. You can apply for a mortgage online or get started over the phone. It also has branches in every state except Alaska, Kansas, Kentucky, North Dakota, and West Virginia. You can find a branch or loan officer near you using CMG’s search tool.
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Variety of Loan Options
You can get the following types of home loans from CMG:
Unique Mortgage Offerings
CMG offers an offset mortgage called the All In One Loan™. An offset mortgage combines your loan with a checking account. The balance in the checking account offsets your mortgage balance, so you pay less in interest.
CMG’s HomeFundIt™ program provides you with a link to share on social media so friends and family can donate money for your down payment. Then, with CMG’s Exclusive Costs Covered program, first-time homebuyers can get $2 from CMG for every $1 donated, totaling a grant of up to either $2,000 or 1% of the purchase price, whichever is less. You also must complete a homebuyer education or counseling program to receive this grant. The grant money will go toward your closing costs.
Down Payment Assistance
CMG has a program called Community ONE which lets eligible borrowers put as little as 1% down on a home. The remaining 2% comes from CMG in the form of a grant of up to $6,000.
This program isn’t available nationwide. You can use CMG’s locator tool to see if it’s available in your area.
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You can also get a Freddie Mac BorrowSmart loan from this lender, which comes with up to $1,500 in assistance for borrowers in eligible areas who meet income limits.
CMG Financial Mortgage Interest Rates and Fees
Based on our review of Home Mortgage Disclosure Act data, CMG Financial’s mortgage rates are a bit higher than average.
In 2022, the average borrower getting a conventional mortgage from this lender paid $3,938 in origination charges, according to HMDA data. This is around average compared to other lenders.
CMG Financial Overall Lender Rating
Loan Types: 4 out of 5
CMG Financial offers a wide variety of mortgages that should meet most borrowers’ needs, plus some less common loan types and a couple of programs that are unique to this lender, including the All In One Loan.
Affordability: 3.5 out of 5
We think CMG Financial is a decently affordable lender thanks to its low down payment mortgage options (including the three main types of government-backed mortgages) and down payment assistance programs. But its average rates are slightly high.
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Customer Satisfaction: 4.96 out of 5
On its Zillow lender page, CMG Financial has a 4.96 out of 5-star rating, based on over 3,000 customer reviews.
Trustworthiness: 4.5 out of 5
CMG Financial does not have any recent public controversies.
The Better Business Bureau gives CMG Financial an A rating because there are some customer complaints on the website. BBB ratings indicate how a company responds effectively to customer complaints, advertises honestly, and is transparent about business practices.
CMG Financial Pros and Cons
Get an Offset Mortgage or Crowdfund Your Down Payment
CMG offers a couple unusual options for borrowers. If you’re looking to save money on interest, you might like its offset mortgage called the All In One Loan. These loans work in conjunction with a checking account, where the balance in your checking account lowers the balance of your mortgage that you’re charged interest on.
This lender also has a platform called HomeFundIt that lets you crowdfund your down payment. If your loved ones have expressed interest in helping you purchase a home, this could be a good way to do it. With the Exclusive Costs Covered program, CMG will grant you $2 for every $1 raised through HomeFundIt.
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You Can’t Explore Sample or Customized Rates
This lender does not show its current rates online. Some lenders list sample rates, and others let you customize your rate by entering your credit score, ZIP code, and other personal information. CMG Financial doesn’t show any rates, though, which can make it difficult to compare it to other lenders without getting preapproved.
We also found that its average rates are slightly high compared to other lenders, according to HMDA data.
What Borrowers Are Saying About CMG Financial
Business Insider looked at positive and negative customer reviews, online forums, BBB complaints, and other sources to understand what borrowers think about CMG Financial.
Great Customer Service From Knowledgeable Mortgage Pros
In online reviews, previous borrowers said their experience with CMG was smooth, and that the loan officers they worked with were skilled and communicative.
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How CMG Financial Compares
CMG Financial vs. Rocket Mortgage
Rocket Mortgage ranked No. 2 in customer satisfaction in 2023 according to J.D. Power’s Mortgage Origination Satisfaction Study, and it has a reputation for providing great customer service. It’s also our top pick in our guide to the best mortgage refinance lenders.
Rocket Mortgage and CMG both have 1% down programs; Rocket’s is called ONE+, and it comes with a maximum grant of $7,000, which is slightly higher than CMG’s Community ONE grant.
If you’re looking for a less common type of mortgage or you want to explore many different options, you might like CMG better, since Rocket’s offerings are relatively basic.
Rocket Mortgage Review
CMG Financial vs. Fairway Independent Mortgage Corporation
Fairway Independent Mortgage is another great lender for customer service. It was No. 1 in J.D. Power’s 2023 satisfaction study.
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Fairway also offers a strong range of mortgage options, plus a $7,000 grant for borrowers in eligible areas. It also has hybrid and remote closing options. It may be worth getting approved with both of these lenders to see which one can offer you the best overall deal.
Fairway Independent Mortgage Corporation Review
CMG Financial FAQs
Yes, CMG Financial is a direct lender. This means it originates its own loans, as opposed to a mortgage broker, which connects borrowers with multiple lenders to find the best fit.
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Christopher M. George founded CMG Financial in 1993. He still acts as President and CEO of the company.
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Based on our review of HMDA data, CMG Financial’s mortgage rates are on the high end compared to other lenders.
CMG Financial ranks high in customer satisfaction, and many online reviews say they have a positive experience with this lender.
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Yes, CMG Financial has a few different unique mortgage programs, including its down payment crowdfunding platform HomeFundit and its offset mortgage, called the All In One Loan. It also offers a down payment assistance program called Community ONE.
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You should shop around with multiple mortgage lenders and compare offers to make sure you’re getting the best deal. Consider exploring some nearby alternatives to CMG, such as a local lender or credit union.
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Why You Should Trust Us: How We Reviewed CMG Financial
For our review of CMG Financial, we used our methodology for reviewing mortgage lenders.
We look at four factors — loan types, affordability, customer satisfaction, and trustworthiness — and give each a rating between 1 and 5, then we average these individual ratings for the overall lender rating. Lenders get higher ratings if they offer a large number of loan types with affordable features, have positive customer reviews, and don’t have any recent public controversies.
Reassessing your finances throughout the year is necessary to optimize outcomes. Throughout the second half of 2024, navigating key areas, such as maximizing tax-free opportunities, protecting your assets amid market highs, optimizing your interest-earning potential on savings and ensuring your estate planning is up to date, is important. By proactively managing these aspects, you could greatly improve your financial stability and security.
1. Maximize tax-free opportunities: There are only 1½ years left to save.
The clock is ticking on the Tax Cuts and Jobs Act, which is set to expire at the end of 2025. Starting in 2026, most tax brackets and federal income tax rates will likely increase. Now is an important time to get as much money into your tax-free bucket as possible before rates go up.
Roth IRAs are one of the easiest and most common methods to move money to “tax-free” status. Other unique strategies involve maximum funded life insurance or municipal bond funds, which may be something to consider after you’ve maxed out your Roth contributions.
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Roth IRAs do come with relatively low contribution limits. For 2024 the limit is $7,000 per person per year, or $8,000 if you are 50 or older. In addition, you cannot contribute the full amount if you have a modified adjusted gross income of $146,000 or more as a single filer, or $230,000 or more as a married couple. Contributions phase out after these limits, and you become ineligible to contribute anything at all when your income hits $161,000 if single or $240,000 if married.
However, there is a way around these limits — if you have access to a Roth 401(k). Those with this savings option can contribute up to $23,000 to their Roth 401(k) (or $30,500 if you are 50 or over). Contributions inside Roth 401(k)s have no income caps, making almost anyone eligible. Any employer match is likely to go into the traditional 401(k), but your own contributions can go in after-tax and grow tax-free inside the Roth 401(k).
The biggest long-term savings could come from a Roth conversion. That is when you take existing traditional IRA or 401(k) funds and pay taxes now to convert to a Roth IRA. Paying these taxes upfront could feel like a burden, but in most cases, it will save you more on taxes in the long term once that money is growing tax-free. Take advantage of today’s “low” tax rates, before they go up in 2026. Remember, to convert to a Roth you need to complete that transaction by Dec. 31 for it to count for this year. You cannot backdate a conversion like you can for a contribution.
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Talking to a tax attorney or CPA can help you develop an ideal strategy for how much is appropriate to convert each year given your specific situation. When searching for a tax adviser, keep in mind that it is important to have someone who considers the long-term picture and works to minimize taxes over your lifetime, not simply in a given tax year.
2. Protect your assets from market downturns.
Remember the old adage “buy low, sell high”? We’ve recently seen the market at its all-time highs. While it is impossible to know if and when the market will have another downturn, it may be wise to take advantage of the current market highs and pull some cash out onto the sidelines. Historically speaking, after a market crash it often takes several years or more to break even.
Particularly, if you have a need or desire to spend some of your savings in the next few years, it would be a good idea to have cash available to use if the market were to drop. That way, you won’t be “selling low.” This is especially true given the great interest rates available today for short-term guaranteed accounts (money markets, CDs, Treasury bills, etc.). Whatever you may want to spend or withdraw over the next several years may be advantageous to keep in a guaranteed account (also known as a “volatility buffer”).
3. Be mindful of interest rates.
Speaking of safe money, when was the last time you did an optimization check of your savings accounts? Most advisers recommend having at least six months’ worth of expenses someplace safe and guaranteed. However, just because it is safe doesn’t mean you can’t earn interest on it. Make it a habit to regularly search and see if there are options to earn a higher interest rate on your emergency fund without taking any more risk.
On the flip side of interest rates, just as you can earn high interest in the bank, the cost of borrowing has also increased significantly relative to a few years ago. It is becoming more difficult to find an affordable home to purchase. If you have a great interest rate on your mortgage from a few years ago, don’t be in a rush to pay it down. One potential loophole if you do need to purchase a home and want a lower interest rate is to look for a home with an assumable mortgage. Many loans, particularly if they are FHA, USDA or VA loans, are assumable, meaning you could potentially take over the seller’s existing mortgage with a favorable interest rate.
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4. Follow up on your estate planning checklist.
As we go down the home stretch in 2024, it is a good idea to do an annual review of your estate plan. This should start with reviewing the beneficiaries on all of your assets. It is important to remember that beneficiary designations trump everything — this means that even if you have a great will and trust, your 401(k) plan or life insurance policy will pay the listed beneficiary directly, whether or not your will and trust say differently.
Where a trust becomes very important (rather than just a will) is for real estate. If you don’t have your house in a trust, you should strongly consider creating one in order to bypass probate, increase privacy and exercise more control over your assets. Watch out for common trust pitfalls, including naming more than one co-trustee, having a restrictive A/B setup for a married couple even if your assets are under the estate tax limit, or leaving a single property to several beneficiaries without direction on whether/when to sell the property.
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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.
London, UK, July 19, 2024 (GLOBE NEWSWIRE) — In the dynamic world of trading, staying ahead requires more than just market knowledge; it necessitates innovation and technological advancement. AXL Finance, a pioneering tech company, is transforming the trading landscape for Australian clients with its unique AI development platform. By leveraging state-of-the-art AI systems, AXL Finance is setting a new standard for successful trading.
A Unique AI Development Platform AXL Finance review highlights the company’s eight-year journey perfecting its AI-driven trading platform, ensuring it caters to the specific needs of traders. This platform is not just a tool but a comprehensive system that integrates advanced algorithms with real-time market analysis. The result is a trading environment where decisions are made based on precise data and predictive analytics, significantly increasing the chances of successful trades.
Tailored for Australian Traders Understanding the unique market conditions and regulatory environment in Australia, AXL Finance review emphasizes how the platform is tailored to meet local demands. This localized approach ensures that Australian traders benefit from a system designed to navigate their specific market dynamics, providing an edge over generic trading platforms.
Key Features of AXL Finance’s AI System
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1-Real-Time Market Analysis: The AI system continuously monitors global markets, providing real-time insights and analysis. This feature ensures that traders are always informed and can make timely decisions.
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Empowering Australian Traders AXL Finance review highlights the company’s commitment to empowering traders through continuous innovation and platform improvement. By providing tools that are both powerful and accessible, AXL Finance enables traders of all experience levels to achieve their financial goals. The platform’s unique AI capabilities ensure that users can trade with confidence, backed by data-driven insights and predictive power.
Join the Revolution For Australian traders looking to elevate their trading experience, AXL Finance review underscores an unparalleled opportunity. With its cutting-edge AI system and the support of expert account managers, the platform not only simplifies trading but also maximizes the potential for success. Join the revolution today and experience the future of trading with AXL Finance.
In conclusion, AXL Finance review confirms its status as a leader in the trading industry, particularly for Australian clients. Its unique AI development platform, coupled with expert guidance, provides a competitive edge, ensuring that traders can navigate the complexities of the market with ease and confidence. With AXL Finance, the future of trading is here.
Website: https://axlfin.com/
Disclaimer: The artist Banksy is not officially involved and has not directly endorsed this project. The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities.