Financing options for your family.
When we are raising our family there are all kinds of things that we need large sums of money for, from purchasing a home to live in, to cars and paying for college. What most of us do not realize is that every time we finance a purchase with a financial institution we are transferring wealth away from our family.
When you meet with an AllianceGroup advisor and structure your Family Banking PlanSM you will learn how to recapture money that was previously slipping away from you, never to used by you or any of your family members again.
Car purchase example.
Let’s consider the financial impact or wealth transfer we experience in the purchase of just one car for your family.
Suppose you decide to finance a $20,000 car at 5% interest for 48 months. You would have a payment of approximately $460 each month. At the end of 48 months you will have paid the finance company just slightly over $22,000 dollars.
This represents your initial wealth transfer. You have the vehicle but you no longer have $22,000 dollars. But the wealth transfer doesn’t stop there. The finance company can continue to loan your $22,000 for as long as they are in business!
If the finance company was able to reinvest or reloan your money at 5% for the next 40 years, your $22,000 dollars would now be worth over $140,000 dollars! Had you not needed or wanted a car, you could have saved and invested your $20,000 dollars at 5% for the same 40 years and you would now have the $140,000 dollars instead of the finance company! This is what is meant by a wealth transfer.
To learn just how much you might be transferring away from your family complete our Wealth Transfer Analysis.