Ready To Become Debt Free?
Did you know each month, about 30% of what you pay towards various debts such as car payments, student loans, personal loans, credit cards, and even mortgages, goes solely towards interest. This system allows these institutions to exponentially increase their wealth using your money.
A significant portion of your payments on amortized loans isn't just reducing the principal amount; it's also covering a constantly compounding interest. The longer the loan's duration, the more the interest accumulates. For instance, a mortgage might end up costing almost double the home’s value due to interest, amounting to nearly 50% of the total repayment.
It doesn't seem fair, does it?
Once your debt is cleared, the likelihood is you might need to borrow again, perpetuating the debt cycle. The critical mistake many Americans make in debt repayment is merely covering the minimum payments and using extra funds for:
- Additional 401k contributions
- Saving in cash accounts beyond an emergency fund
- Stock market investments
- Speculative investments in cryptocurrencies and NFTs
However, if these investments don't outperform the interest rate on your debts, you're financially worse off.
For example, consider the following debts:
- Car loan: $585/month, $18,500 total at 3.25% interest
- Student loan: $647/month, $63,000 total at 6.75% interest
- Credit card: $225/month, $4,700 total at 21.9% interest
This amounts to a total debt of $86,200 and monthly payments of $1,457, of which $490.25 (33.65%) is just interest. This scenario illustrates the importance of prioritizing debt repayment over investment unless the returns exceed the combined debt interest rate of 33.65%.
Our specialized plans allows you to borrow from yourself, avoiding traditional amortized loans and their high interest rates. This way, you stop paying compound interest and start earning it, keeping more money in your pocket.
There's no catch. We simply aim to provide clarity on your financial standing as the first step towards a debt-free life.
Would You Like To Increase Your Spendable Income?
Curious how different types of taxes can influence your investment and retirement income? Believe it or not, it can be quite devastating, especially in the long run. We will look at the difference between taxed accounts, tax-deferred accounts, and tax-free accounts.
- Taxable accounts accrue taxes on earnings and withdrawals in the year paid.
- Tax-deferred accounts allow earnings to grow tax free until you withdraw the money.
- Tax-free means no taxes are imposed on earnings or withdrawals at any time.
Let’s say you have a $10,000 investment account. That account is going to earn you 7% interest for the next 28 years. You won’t be making any more contributions to this investment, just to keep the numbers somewhat balanced. Let’s see what your accounts will be worth.
Quite a significant difference between the three accounts! The difference between taxed and tax-deferred was about 20%. The difference between tax-deferred and tax-free was an incredible 33%! The difference between taxed and tax-free will leave you stunned though, nearly 59%!!!!!
Something to consider - The Government is a greedy parasite that loves to take as much from you as they can - YOUR TAX DOLLARS! With that in mind, do you think taxes will be higher or lower in the future?
Eliminate Debt
- Do you have a mortgage, student loans, credit card debt, or auto loans?
- Are you on track to be in debt for the next 20-30 years, or longer?
- Is debt weighing you down, and you feel like you will never get out?
- Would you like to increase your spendable income?
Risk Free Investments
Would you like to participate in the gains of the market, but not participate in the losses? We can help!
Reduce Taxes
- Would you like to increase your spendable income?
- Are you afraid you may outlive your money?
- Would you like to reduce your retirement taxation?
- Would you like to lower your tax bill to pennies on the dollar?