DEBT DIAGNOSIS

First of all, who do you know that earns between a 15% and a 40% return? Most peo­ple respond with — I don’t know. Look in your purse or wal­let and you will most likely find lots of Store and/or Credit Cards.

Don’t they charge between 9% and 40%?

When you pay off a large bal­ance over time, that is what you pay.

If you pay off the whole bal­ance every month, obvi­ously you pay noth­ing, 0%. .

If you own a busi­ness, what rate does your bank charge you for a loan or line of credit?

So the next ques­tion is, if you bor­rowed the same money at say 15% (using your grow­ing pri­vate reserve as col­lat­eral) instead of the cor­ner bank or credit card com­pany at 15%, how much would you earn?

Most peo­ple will answer 15% because you are gain­ing the return equiv­a­lent of those trans­ferred dol­lars, and they would be half correct.

But, if you really think about this, aren’t you sav­ing the 15% you would have lost to some­one else and keep­ing the 15% you would have paid that some­one else?

So the real­ity is you are ahead 30%. Instead of a 15% loss you have a 15% gain the dif­fer­ence being 30%   When you are the saver/depositor, you are in con­trol like the banker and you are the bor­rower, where does all the money end up? With YOU.

Where is the risk in this trans­ac­tion? All with YOU. Will you be an hon­est banker and pay your­self back? If so, you will be guar­an­tee­ing a 30% return equiv­a­lent of those trans­ferred dol­lars, with this 15% inter­est charge example.

Why would you not want to pay your­self 15% if you are will­ing to pay some­one else’s bank 15%?

Now, go and ask your finan­cial man­ager to give you a dol­lar total of all the money you have given them to invest for you.

Then ask them to give you a dol­lar amount if you were to with­draw all your money as of today, how much would you bring home? What has been the growth? 30%? 20%? 10% 0%?

Next, add up all the inter­est you have paid on debt repay­ments (see how to do this here) over the same amount of time.

You see, because you tied up your money in govt. spon­sored qual­i­fied plans, or in real estate that has lost it’s equity etc., you had to bor­row money from a bank to pur­chase your cars etc.

So while you were invest­ing your money on one side, and hop­ing for an increase of your money, you were loos­ing wealth by pay­ing banks inter­est on the other side. Are you ahead or behind?

But I pay for every­thing with cash, some will say. Well, doesn’t that mean you had to make pay­ments to a hold­ing account while you saved up the money to buy the item with cash? Then after spend­ing the cash, haven’t you now lost the oppor­tu­nity that that money pro­vided to earn inter­est — for the rest of your life?

Don’t you also have to con­tinue mak­ing pay­ments to a hold­ing account so you can pay cash for the next item you want to buy?

Click here to see the lost oppor­tu­nity cost asso­ci­ated with pay­ing with cash.

Thou­sands of users indi­cate Pri­va­te Reserve Strate­gies offer the most effec­tive way to finance a busi­ness and build wealth-providing unmatched secu­rity, pre­dictabil­ity, asset pro­tec­tion, flex­i­bil­ity, liq­uid­ity, finan­cial con­trol, and unknown tax advan­tages. This is espe­cially A MUST con­sid­er­a­tion for ALL self employed! Next ques­tion is, “but where do I get the money to start my bank­ing sys­tem so I actu­ally have money to bor­row from?”

That is what we are trained to do, is find the money. And we don’t tell you to eat beans and rice for the next few years either.

Call me today,

Jen­nifer Hansen, at

845 – 649-7487 or

email me at Jennifer@DebtDiagnosis.com

and I will be happy to dis­cuss this fur­ther with you.

Retire­ment Quiz

1. Retire­ment Plans (i.e. 401(K), SEP IRA, etc.):
a) Save taxes
b) Defer taxes

2. Whether or not I win by fund­ing my retire­ment plan (i.e. 401(k), SEP IRA, IRA)
depends on?
a) What tax bracket I will be in at retire­ment
b) What deduc­tions I will have when I take the money
c) What my exit strat­egy is
d) All of the above

3. The only way I win with fund­ing a retire­ment plan is if I with­draw the money
at a ___________________ tax bracket than when I con­tributed the money.
a) Higher
b) Lower
c) Equal
d) I have no idea

4. If I plan to be in a HIGHER tax bracket when I with­draw the money at
retire­ment, I should only fund my retire­ment plan (i.e. 401(k)) up to the
__________________ in order to give myself max­i­mum liq­uid­ity, use and
con­trol over my money.
a) What I can afford in a sit­u­a­tion where the com­pany doesn’t match con­tri­bu­tions
b) Com­pany match

Mort­gage Quiz

1. A large down pay­ment will save me more money on my mort­gage over time than
a small down pay­ment?
a) True
b) False

2. A 15-yr mort­gage will save more money over time than a 30-yr mort­gage?
a) True
b) False

3. Mak­ing extra prin­ci­pal pay­ments saves me money?
a) True
b) False

4. The inter­est rate is the main fac­tor in deter­min­ing the cost of a mort­gage?
a) True
b) False

5. I am more SECURE hav­ing my home paid off than financed 100%?
a) True
b) False