You get a platform with Infinite Banking that will allow you to safely and infinitely grow your money at the same time that you use it to pay off debts (if you have any), invest, acquire cash flowing passive income assets, or anything else on your financial goals list. You can earn the gains on both pots of money, the money within your bank and the money invested in your outside investment (like real estate or businesses).
You get a platform with Infinite Banking that can be argued is safer than a bank savings account, money market, or CD that also pays a much higher return that those types of accounts and government bonds.
The money that you lend yourself doesn't go on your credit report, doesn't effect your FICO, doesn't effect your debt-to-income percentages for other loans. This is like a secret transaction that keeps the banks and credit bureaus out of your life. Simply inform your insurer that you would like to take a loan and it will be done. There is no application process to do so.
You will instantly be dramatically increasing your net worth and the value to your family and beneficiaries via a death benefit for later. This will be transferred to your family tax free one day, which can easily fund another bank of their own and keep the cycle going. True generational wealth that can grow infinitely by utilizing Infinite Banking.
Once you make deposits into your banking policy, if it was designed correctly and you have the correct team to help you do so [we are one of those groups], every dollar should be able to later be accessed tax free and without penalty! Time to take a chunk of your life's earnings and park it outside of the reach of our friends at the IRS, as long as we follow all of the rules they have set.
We all hear this on the regular: "Max out as soon as you can! Build to a million! Then retire and be taken care of." So let's do a little bit of math on the Accumulation and Distribution method of saving for retirement.
Let's say that we can hit that $1m dollar mark by retirement. WooHoo! Right?
A well known retirement plan suggests that if we take out 4% of our nest egg per year, we *should* not run out of money before we run out of life. So what would that look like for people like us?
4% of $1,000,000 is $40,000 per year.
Deduct taxes (remember that your taxable income likely won't decrease in retirement [mortgage interest deduction should be lower, child credit or dependents will likely be adults by now, pension/SSI/supplement/TSP are all taxable income sources]) so I assume 24% Federal and 9% State in this example of a 33% combined tax rate. Will taxes go up or down by the time we retire? I will leave that speculation up to you.
$40,000 now becomes $26,800 or a whopping $2,233.33 per month.
WAIT! You are telling me that a massive effort and long career's worth of saving, will only produce a mere $2,233 a month?!?!
Doesn't sound very exciting or plentiful does it?
The real question that you should ask yourself is: Do I want to do better than $2,233 a month in retirement?
If you answered no, then it's probably not worth your time to continue reading. If you answered yes, then I urge you to continue reading further.
This is where the power of the following benefits come into play to create an amount of income in retirement that will actually do something for your life:
I can find you a hidden $500 a month immediately that you may not have even known about. If you use this Infinite Banking Concept system instead of relying on your TSP, your life will then also be protected as an added benefit. Thus when it's time to select how your pension is paid out, you can select the "without survivorship" option, because you will have already set up a windfall of tax free money for your spouse and/or children on the event of your passing.
This is a small example of how powerful unlocking your TSP can be. This is what I did.
I took two withdraws from my TSP to initially fund my IBC banking policy. Yes, withdraws, not loans. I redirected my $750/pp (maxing my TSP in 2021) instead into my IBC banking policy. I now contribute $0 to my TSP.
I went shopping for real estate to create cashflow. I purchased a total of 8 units for a total price of $220,000. I loaned myself $50,000 from my IBC banking policy for the 20% down payments and closing costs.
I have mortgages that are just under $1000 per month.
My gross rental income is $5100 per month.
I am using most of the net proceeds to pay back my IBC banking policy loan. This does two things, it stores my money in the safest and highest paying account possible AND it builds back up my policy "equity" allowing me to loan myself money for the next real estate purchase that pops up.
Now I am no genius, far from it actually, but a net gain of $4100 a month, plus saving $500 per month for the survivorship pension (total of $4600/mo) far surpasses $2,233 per month. It's nearly DOUBLE! This doesn't even take into account the money still building value and compounding inside of my IBC banking policy. That's additional cash flow when retirement comes.
I have done this within a 6 month timeframe. I still have the better part of a decade to work before I am first eligible to retire. Just imagine what I (or you) will be able to accomplish before retirement by unlocking the power of that money sitting inside the TSP.
Copyright © 2021 Unlock Your TSP - All Rights Reserved.
UnlockYourTSP.com nor any of its partners or representatives is in any way affiliated with the United States Government, The Federal Retirement Thrift Investment Board or the Thrift Savings Plan, and that the services being offered are not sanctioned by the aforementioned.
Powered by GoDaddy