Financed Retirement Plans  represent an exciting but simple strategy for building your retirement nest egg. There is one primary prerequisite to this strategy and that is you must be a business owner with a revolving accounts receivable balance. Relax, this does not mean that you have to either pledge or sell your accounts receivable – that is just one of the prerequisites.

These are the basics of the plan:

First and most importantly, you will be loaned the principal that will be invested. There is a bank that specializes in these plans and has a well structured plan for just that. OK, now let’s say the loan amount is $1,000,000. You immediately invest that in a private investment (maybe one identified on this site). The loan from the bank is at 6% simple interest and the private investment at 7% compounding interest (7% is conservative). If you select a plan like the zero coupon bonds you are looking at 12%+ interest. You pocket the spread.

Now for a few details about the loan: Your business makes the payment as an expense. You only pay then income tax on the payment. WOW! You didn’t know you could do this. Well, the good news is that you were incorrect and you can. That also means you can put a $1,000,000 to work per year for roughly $14,000 (cost of the loan when the business pays the expense) rather than $78,000 (cost of loan payment with after tax dollars). Lets review that again - $14,000 vs $78,000 – Yes, these are correct numbers.

This strategy will represent roughly $1,500,000 more into your pocket – than many alternate plans. $1,500,000

Want to know more. Ask us. We will be happy to link you to the banks and investment managers that handle these plans.