Recycle My Debt (RMD) is a scaled down version of Prospera and an excellent entry-level product to strategic financial planning. As with Prospera, it enables advisers to model detailed cashflow forecasts throughout the clients’ working lives and into retirement.

Clients suitable for RMD modelling will typically be aged 30-55 and have:

• one or two wage earners with or without children
• a home mortgage and superannuation
• 30% or more home equity and a preparedness to use home equity to fund a geared investment portfolio, and
• a long-term investment horizon of 7 years or more.

Clients that implement an effective RMD strategy create wealth by recycling debt from a private line of credit (including mortgage) to an investment line of credit. In doing so they take advantage of the income and capital returns on their investments and the favourable tax treatment of investment line of credit interest payments.

Over time, an RMD strategy creates wealth and improves retirement lifestyle, without impacting the client’s current standard of living.