How do I fly for a living when I can't afford it?

[TWA]

Thanks for pointing that out Swass, I owe you one :beer:. I realized it about an hour after I posted it and was hoping no one would notice. Maybe I do need his software :smash:

 

[Swass]

Thanks for pointing that out Swass, I owe you one :beer:. I realized it about an hour after I posted it and was hoping no one would notice. Maybe I do need his software :smash:

Just bustin your balls. LOL

Have a good weekend

 

[A Squared]

Well, I'm avoiding doing other things that I'm supposed to be doing, so as a procrastination strategy, I'm taking a little time to flog the dead horse. Yeah, I know that it's been pretty well demonstrated that TOGA's little program is based on lies and is little more than a pyramid scheme for selling a worthless product, but I really despise liars like him who attempt to defraud folks who aren't comfortable enough with finance to see through the lies.


I hope that you all will indulge me this little horse flogging, if there's just one person out there who can't quite see why this is a scam, and this explanation makes it clearer to them, it's worth it.

So, since TOGA won't actually run some numbers on my hypothetical to show how his magic works (it doesn't) I took the time to do the calculations myself. I used the hypothetical example I proposed earlier. However, I used a more realistic interest rate for the HELOC. The idea that You can get a HELOC for lower interest than a home mortgage (all else being equal) is absurd. Generally speaking, a home mortgage is about the lowest interest rate a consumer can get from a bank for a loan. So I used a more realistic 7.5% for the HELOC, because TOGA finally conceded that you're actually making *extra* payments ( despite the lies on his website that you don't) I picked an arbitrary number of $1000/ month extra to pay down the balance on the HELOC.

You got a $200k, 30 year mortgage on a $250K house. The day you sign the mortgage papers, you run down to the bank and take out a $50K HELOC at 7.5%. You write a check against the line of credit to your mortgage company for $50K. That makes your principal to pay on your mortgage $150, and you begin paying the $1135 monthly payments on your mortgage, and $1000 a month to pay down the balance on the HELOC. It takes 5 years to pay off the $50K on the HELOC, at which point the remaining principle on your mortgage is $119,175 So, you write another $50K check to your mortgage company, which brings your principle down to $69,175, and it takes another 5 years to pay down the HELOC to zero, at which point your outstanding principle on your mortgage will have been paid down to $12,834 through your standard $1135 monthly payments. It will take you an additional 11 months to pay off that remaining principle, for a total of 11 years to pay off your mortgage.

Wow!!! Magic, just like TOGA said, EH?, pay it off in a little over 1/3 the time, whooooweee.

Yeah, except, if you didn't do the HELOC thingy, and you just put the extra $1000 the entire mortgage off in 10 years, not 11. (1/3 the time, not 1/3 the time plus another year) For a given additional monthly payment toward the principle, the HELOC actually lengthens the payoff time. Of course it does, you're shifting debt from a 5.5% loan to a 7.5% loan. You wind up paying *more* interest.

Now, if TOGA responds here, which I don't expect him to because I think even he can see that he's totally discredited here, He'll say "well, you don't just write 2 checks to pay off principal, you do it more frequently with smaller checks, reducing your mortgage principle sooner." Yeah, no doubt you do, but that is also *increasing* the money you owe at 7.5%, which isn't doing you any favors.

Bottom line; the more debt you transfer from your mortgage to your HELOC, the worse off you are, all else being equal.

For a given total monthly payment on your mortgage, the absolute best thing you can do is pay down your principle directly and skip the HELOC altogether.

The gimmick with the HELOC is that if you deposit your entire paycheck into the HELOC, then pay your bills by writing checks against the HELOC, you are in effect putting every cent you don't spend toward paying off the principle. But you could do effectively the same thing by just writing a check for every cent in your checking account to the mortgage company at the end of each month, and you'd pay off the mortgage faster than with the HELOC. (because you're not transferring debt from low interest (5.5%) to higher interest (7.5%).

Even if you could get a HELOC for the same rate as your mortgage (not going to happen), there would be almost no advantage to the HELOC. What little advantage you might gain, would be because you pay your paycheck in up front, and draw from the account, you're effectively paying the principle at the beginning of the month instead of the end. This might result in paying off the whole thing one (1) month sooner.


So; this is what you get from TOGA for $3500, advice to move debt from lower interest to higher interest which actually increases the time you need to pay off your mortgage, all else being equal.

 

[A Squared]

Hey, I think I saw the Horse twitch!

From previous posts by TOGA in other threads:

It's a way to pay off your mortgage at a greatly accelerated rate without ever paying any extra.

http://forums.flightinfo.com/showthread.php?p=1379422#post1379422

Even if you don't have much discretionary income, you can pay off a 30 year mortgage in about eight to ten years with no out of pocket expense, no increase in monthly expenditures and a written guarantee.

http://forums.flightinfo.com/showthread.php?t=90082&page=2

Then when he gets called on it in this thread:

OBVIOUSLY extra payments are made . . .

So which is it TOGA?

You don't make extra payments or you do?

You're sounding kinda like Jon Lovitz here......yeah, that's the ticket!!!


Seriously, TOGA, how can you stand to look at yourself in the mirror when you shave? Can you even look your own reflection directly in the eye without being ashamed of what you are?

 

[rumpletumbler]

Any reason a class II medical won't work for employers for flight instructing? I realize you don't need more legally but I figured some employers might have other reasons (insurance) etc....to ask for a class 1.

I want to save the money on the EKG and just get the class II for now.

 

[avbug]

Rumpletumbler,

A second class medical will do just fine. In fact, you don't need a medical at all to flight instruct, so long as you're not acting as pilot in command. If you have a student qualified to act as PIC, you don't need a medical because when you instruct you're acting on your flight instructor certificate...not your pilot certificate.

When you do primary instruction, or teaching students who do not hold pilot certification, then you will be using the pilot certificate as well as the flight instructor certificate...and you'll need a medical to do that. It needn't be a first, or even second class for that matter...a third will do just fine...and if it's sport aircraft (see below)...you can do it with a driver's license in place of a medical.

Don't let anybody tell you differently; the regulation is clear, and is listed in excerpt below.

§ 61.23 Medical certificates: Requirement and duration.

(a) Operations requiring a medical certificate. Except as provided in paragraphs (b) and (c) of this section, a person—

(3) Must hold at least a third-class medical certificate—

(iv) When exercising the privileges of a flight instructor certificate, except for a flight instructor certificate with a glider category rating or sport pilot rating, if the person is acting as pilot in command or is serving as a required flight crewmember;

(b) Operations not requiring a medical certificate. A person is not required to hold a valid medical certificate—

(5) When exercising the privileges of a flight instructor certificate if the person is not acting as pilot in command or serving as a required pilot flight crewmember;


(6) When exercising the privileges of a ground instructor certificate;

(c) Operations requiring either a medical certificate or U.S. driver's license. (1) A person must hold and possess either a valid medical certificate issued under part 67 of this chapter or a current and valid U.S. driver's license when exercising the privileges of—

(iii) A flight instructor certificate with a sport pilot rating while acting as pilot in command or serving as a required flight crewmember of a light-sport aircraft other than a glider or balloon.


(2) A person using a current and valid U.S. driver's license to meet the requirements of this paragraph must—


(i) Comply with each restriction and limitation imposed by that person's U.S. driver's license and any judicial or administrative order applying to the operation of a motor vehicle;


(ii) Have been found eligible for the issuance of at least a third-class airman medical certificate at the time of his or her most recent application (if the person has applied for a medical certificate);


(iii) Not have had his or her most recently issued medical certificate (if the person has held a medical certificate) suspended or revoked or most recent Authorization for a Special Issuance of a Medical Certificate withdrawn; and


(iv) Not know or have reason to know of any medical condition that would make that person unable to operate a light-sport aircraft in a safe manner.

 

[rumpletumbler]

Thanks Avbug. I knew about not needing the medical under certain circumstances but didn't understand it fully. As always you're helpful and informative. Thanks.

 

[Snakum]

I rarely come here anymore, but happened to see Rumple's post, and he and I have written a little over the years. I was darn near in the same boat at one time, with circumstances only a little different. But doors opened when least expected, and I found myself flying full-time last Summer after leaving a longtime employer. I was figuring on making $25K a year as an FO in in King Airs and Barons (Yes ... we had FOs on Barons) and moving up to Baron Capt. within 12 months (insurance reqs were outa sight) for about $30K.

But after all the struggle I finally decided that I needed my head examined to keep this up when I could be making $55-65K a year doing something I was good at and at least liked (IT). That was just me, not everyone throws in the towel. I guess I finally decided I didn't like it enough to risk everything for an iffy flying job (and they're almost all 'iffy' ... don't kid yourself). I decided I'd rather bang around on small singles from time to time and spend more time at home with family, and have money to build a life.

I wish you'd had the opportunity that I gave up, Rumple. I truly do. Cuz it seems you still have that fire. I don't. At 44 years old I've finally gotten over it and I must say ... it ain't too bad. I still linger a little too long at the flight deck door when I fly commercial. But I made my choice ... I'm content.

Everyone has to decide when enough is enough. Don't be afraid to make that choice. Weigh it ... pick a horse and ride. Best of luck to you Rumple!

 

[rumpletumbler]

I got my medical last week. I have to save and get a headset now and BFR.

 

[look4traffic]

If you are in the Atlanta area Falcon Aviation Academy says on their website they are hiring instructors. Maybe something to check out if you decide to instruct full time. Good luck.