For some people, finding more money to put into their own Family Banking PlanSM seems to be a challenge. Knowing that all of us unknowingly and unnecessarily transfer money out of our lives every day, recapturing that money is the solution to the problem. A qualified plan is sometimes overlooked when we try to find extra money each month to fund our own bank, it could be the key to initially funding your Family Banking PlanSM and reducing future tax liability.
HOW DID THAT WORK OUT FOR YOU?
For most people, their return on a 401(k) or IRA accounts for the last 10 years is about 1% annually. Yet, when you look at what kind of return they expect to get toward their retirement, they will tell you somewhere between 6% and 10%. When considering how to make up that difference, we show people the Family Banking Plan.
USING YOUR EXISTING 401(k) OR IRA TO FUND YOUR BANKING PLAN
Considering that the largest amount of money that people have in one lump sum is often their 401(k) or IRA, the question comes up “can I use that money to fund my banking plan?” The answer is yes, but there are some restrictions that need to be taken into account.
As long as you are currently employed, you will not be able to use the existing money in your 401(k) to fund your Family Banking Plan. However, there are two things you can do.
First, stop putting extra money into a plan that has gotten you such a low rate of return for the last 10 years and begin putting those dollars into funding your own Family Banking Plan. If you are getting a match, only put in what the company will match then use the extra to fund your Family Banking Plan.
Second, you may be able to borrow money out of an existing 401(k) or IRA to start funding your banking plan. With this option it is important to understand the pros and cons of doing such, however for some people it is an option worth looking into.
Once you are no longer employed, you have the option of moving your 401(k) or IRA into a place where you can systematically start moving it into your own banking plan. There will be taxes to pay, but if you believe, like we do, that taxes are going up in this country, then paying them sooner than later makes a lot of sense.
Start Educating Yourself About the Family Banking Concept (aka Infinite Banking)
Take our Cash Recovery Analysis and take the first step in learning how the infinite banking concept can bring financial certainty to your financial future.
Also request our Free Report to learn more about the Family Banking Plan and our other services!