Events, Places & Spaces ...|
August, September & OctoberChicago
Julie Ann will be in town for the next few weeks. Now's the time to schedule a meeting with her or host a SEB Roundtable (see below.)
NovemberSalem, OR4-5: 2010 Freedom Retreat & SEB Roundtables
if you missed the Night of Clarity in Nashville, you will have a second chance
to see some of the top economic minds in action at the Freedom Retreat.
Hosted by my colleague Tom McFie of Life
Benefits, Inc. you can get more information or to register for the event by clicking
on either link above, or send me an email
with "2010 Freedom Retreat" in the subject line.
Please send an email if you are interested in hosting or attending a SEB Roundtable or want to set up a client meeting with Julie Ann if you are in any of the above areas.
NOW Is The Perfect Time ...
Are you drowning in debt,
saving for your childrens' college, needing additional equipment for
your business or wanting to add a room to your home or vacation
hideaway? It's never too early or never
to late to set up a Self-Empowered Banking System. Whether you're 6, 60 or anywhere in between -- NOW is
the perfect time to get started building wealth with Self-Empowered
Banking. To learn
more about how Self-Empowered Banking can get you on the road to
financial freedom and real wealth creation, contact Julie Ann Hepburn or call 312.957.9400 x 403.
Already On Board?|
Are you already on board as a Self-Empowered Banker?
Do you know someone who could benefit from learning more about how Self-Empowered Banking works and whether it's right for them?
We would be delighted to talk with them further, please refer them to NPCG: Julie Ann Hepburn or at 312.957.9400 x 403. Thanks in advance for your help!
About SEB Roundtables
Got friends or colleagues that you want to introduce to Self-Empowered Banking? Host a SEB Roundtable in your area.
Ann is constantly on the move and if she is coming to your area, ask to
host a SEB Roundtable for a small group (6-10) of interested people in
your area. We'll post her travels in the Events each month so you'll know if she's coming your way.
she's not scheduled for your area and you want her to come your way,
and are willing to host at least two SEB Roundtables, please send us an email request with proposed dates and place the word ROUNDTABLE in the subject line
Just how 'green' are you? No, I'm not talking about recycling -- I'm talking about your money and how much you are giving away. Do you think you are ready to go green with your banking, financing, saving and investing? We talk about alternative fuels, hybrid cars, smaller carbon footprints -- how about alternative banking that helps YOU go greener, and I don't just mean environmentally. Financial sustainability is what I'm talking about creating here.
In this month's edition, we explore alternative financial options and give you some ways to go green in more ways than one with your hard earned dollars. Our case study this month shows you how you can use that IRA, 401K or other retirement account to right the ship, and recoup the penalties and tax paid on early withdrawals in a snap.
Go Green Now! Look forward to hearing from you.
Julie Ann Hepburn
| ||How Green Are You?|
There's been a lot of focus in the last several
months about 'going green' - to the point where it has become pretty
mainstream. We talk about going
green to save the environment, but what about going green to save money - your
You rarely hear the banking, finance and investment
industry talk about 'going green' except when it comes to charging higher fees
and making their balance sheets greener.
The traditional financial marketplace spends billions of dollars each
year to convince you that their way is the only way - to bank, finance, save
If you're financing a large purchase (house, car,
etc), the next phase of your business, or perhaps considering refinancing your mortgage, chances are you are looking to your
bank, credit card company, or other lender to do the deal.
If you're saving for your child's
college or the trip of a lifetime, again, you're turning to your bank for a
savings account, a CD or a 529 for your child's education.
hoping to retire one day, you've probably got money stashed in an IRA (Roth or
Traditional), a 401 K, KEOGHs, TSAs or other retirement accounts, and again, your bank, broker or employer is 'the go-to person'
Hmmm ... is there a pattern to all this? You bet there is, and with good
reason. The fees and interest that
these 'traditional' financial institutions make off of you every time you use
them to move your money around is worth a lot of money to them. We told you in April's Building
Wealth that banks make $24 billion in overdraft fees annually.
As a result of the 2009 Credit Card Act, those fees will be reduced greatly. But, as we all know banks will find other ways to make up for the shortfall this creates. No matter where they make it up -- those fees will be out of your
pockets, just as the old overdraft fees were. For more info on the news rules and how they affect YOU, check out this article at Credit Cards.com
If that's what they made on overdrafts, what do you
think they are making on loans, credit card interest, services fees,
etc.???? And, all of it is coming
out of your pocket.
What about your funds that are tied up in
401Ks, IRAs and other government-based retirement account? In this tough economy, you sure would like to get
access to those funds, wouldn't you? But, you can't -- not without paying a penalty, and the deferred tax, which you already agreed to pay when you signed up -- on your own money. No wonder the
financial industry doesn't want to talk about 'going green.'
But, we at National Private Client Group do want to
talk about 'going green.' If you
are going green it means that you already understand that you can put the same
fees and interest you would be or are paying to traditional financial institutions in your
own pocket instead. Here's how you can create sustainability in your financial situation:
- Start depositing your money in a 'banking system'
over which you have complete control.
- Borrow money from your banking system at an interest
rate you set - we recommend that you charge yourself the same interest rate the
traditional financial industry is charging you so you can grow your banking system
Now what else can you do with your banking system? Here are a few things you can do to create sustainability in choosing to do your banking alternatively:
Have instant access to your retirement funds, unlike 401Ks, KEOGHS, IRAs,etc., which penalize you for early withdrawal.
Now, we think these are some pretty good reasons
for exploring an alternative way to finance, save and invest your dollars and cents. We also think it's a good
way to get everybody else's hands, including the federal government's, out of
If all of the above doesn't get you started thinking 'green' -- remember this: your dollars are worth more TODAY than they will ever be in the future (you've heard us say this in previous newsletters.) Why do you think that ALL financial institutions want to take your dollars TODAY and give them back to you in the FUTURE? Because they already know this. Go green and start thinking like they do and you will make the money instead of them!
For more information, contact Julie Ann Hepburn by email or phone at 312.954.5700 x 403.
Case Study: Finding An Alternative
This case study is a compilation of several clients with whom we currently work. They are self-employed consultants working primarily in the sales area, and for the purposes of this case study, we are collectively calling them Mark*. The figures used are an aggregate of the client group.
Needless to say, when the economy imploded, Mark's business hit rock bottom. Although Mark is still receiving some residual income, his monthly take was dramatically reduced. Mark's been paying more than $4,000 a month to credit card companies, which is primarily finance charges, and about the same toward his mortgage. He's drowning in debt and he's angry, but not for the reason you think.
Why is Mark angry? Well, he's sitting on over $700,000 that is tied up in 401Ks and IRAs from his corporate days, which he can't access without paying penalties and the deferred tax. He's been relying on the traditional banking, saving, financing, investing system to provide for him. Now, he's being penalized for wanting to use his own money to keep himself afloat until the economy rebounds. Wouldn't you be angry, too?
When Mark came to National Private Client Group
, we showed him that if he took the money now from the 401K/IRAs that he needs to get rid of the credit card debt, and to pay the deferred taxes and the early withdrawal penalty, that within fifteen months, he could be whole again. How will this work?
First, we'll create his bank with the 401K/IRA money, about $50,000, and borrow against it from Mark's Self-Empowered Banking System
(SEB) to pay the credit cards, the deferred tax, which you already knew you would have to pay, and the penalties. Now, he is no longer racking up finance charges that he's been paying, so that essentially stops the 'paying finance charges on finance charges' cycle that happens with credit cards. Mark then turns around and pays the $4,000+, which he's been paying the credit card companies, back to his bank.
Some of you might be thinking, why didn't he just borrow the money from the 401K/IRAs and then pay it back the same way he pays it back to his banking system?
STOP!!! That's not a good thought. PLEASE DO NOT EVER BORROW AND PAY BACK TO ANY OF YOUR RETIREMENT PLANS.
There's a long explanation about this, which we'll cover in a future newsletter, but know that borrowing from a retirement plan is financial suicide that creates triple taxation and additional penalty fees. Remember, financial institutions want to keep your money as long as possible, pay you as little as possible on it while they have it, and then give it back to you with as little gain and as late as possible.
OK - now back to Mark's situation.
To use his Self-Empowered Banking System
(SEB) to his advantage, he then borrows that $4,000+ back and puts it against his mortgage principal, and effectively begins reducing his mortgage payments. Any extra funds he recaptures, Mark then deposits in his banking system to borrow as he needs. Essentially, we have helped him create the financial sustainability he needs to safeguard his future.
Mark will continue this process, all the while earning dividends on his original 'deposit' to his SEB, and taking advantage of the multiplier effect created by the borrowing, repaying and borrowing again cycle, just as traditional banks do.
The real bonus is that in about 8 months, Mark will be 59 and 1/2 and he can shift his 401K/IRA monies over to his bank without penalty. He'll still have to pay the deferred tax, but again, once he puts the money to work into his banking system, in no time he will recoup those tax dollars. Even without turning 59 and 1/2, Mark would still be better off at any age creating a Self-Empowered Banking System
to resolve his personal financial crisis.
Mark was looking for an alternative way to get access to and use the money that he had tied up. With Self-Empowered Banking
, he found a way to get control of his funds, and now, Mark is going green in more ways than one.
For more information, contact Julie Ann Hepburn
or call 312.957.9400 x 403.
* Mark is a real group of clients of National Private Client Group. Their names has been omitted to protect their confidentiality, and they have given their permission for us to compile and share their stories.
Something To Think About ... |
Do you know how much you are paying in fees on your IRAs, 401Ks, and other retirement account?
Do you know what you'll pay in penalties and tax for withdrawing your hard-earned retirement funds early?
Take a look at our Wealth Management Tool and use it to see how much you're really paying.