We’re delving into the world of Velocity Banking and Self-Directed 401k – the unsung heroes of financial growth. So stick around, because we’re about to unveil the secrets that can turn ‘boring’ into ‘brilliant’ for your wealth journe. If you are looking for unconventional strategies to pay off debt fast, increase your leverage and your cash flow, and build wealth, you’re in the right place.
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Velocity Banking + Self-Directed 401k (Leverage Mastery): Unlocking Financial Freedom
In the journey towards financial independence, the concept of Velocity Banking combined with a Self-Directed 401k can be a game-changer. While each of these strategies on its own holds immense potential, when used together, they can pave the way for leverage mastery, accelerating wealth creation and unlocking true financial freedom.
So, what exactly is Velocity Banking? Velocity Banking is a powerful debt payoff strategy that aims to clear mortgage and other debts quickly using a line of credit. The main idea behind this concept is to utilize a home equity line of credit (HELOC) while maintaining cash flow and disciplined budgeting to maximize interest savings and reduce the overall time it takes to become debt-free. Through systematic loan payments coupled with strategic borrowing, Velocity Banking not only helps reduce the interest paid on debts but also allows individuals to free up monthly cash flow, which can then be reinvested for accelerated wealth creation.
However, unlocking financial freedom requires more than just clearing debts. This is where the Self-Directed 401k comes into play. A Self-Directed 401k is a retirement savings account that allows individuals to invest in a wide range of assets beyond the conventional options offered by traditional retirement accounts. With a Self-Directed 401k, investors have the freedom to choose from a variety of investments such as real estate, private lending, precious metals, startups, and more. This opens up endless possibilities for diversification and potentially higher returns on investments.
When combined, Velocity Banking and a Self-Directed 401k create a synergy that ultimately leads to leverage mastery. By employing Velocity Banking to rapidly pay off debts, individuals can free up significant cash flow, which can then be diverted into a Self-Directed 401k to invest in alternative assets. This thriving combination allows individuals to simultaneously clear debts and build a diverse, profitable investment portfolio, transforming their financial landscape.
One of the key advantages of leveraging Velocity Banking along with a Self-Directed 401k is the potential compounding effect. As debts are paid off faster, the extra cash flow generated can be consistently funneled into investment opportunities, thereby magnifying returns over time. This compounding effect accelerates wealth creation and accelerates the path towards financial independence.
Additionally, the self-directed nature of a Self-Directed 401k empowers individuals to make strategic investment decisions based on their knowledge, expertise, and risk appetite. While traditional retirement accounts limit investment options, a Self-Directed 401k opens up a world of opportunities to explore alternative investments that align with an individual’s financial goals and interests.
However, it’s important to note that leveraging Velocity Banking and a Self-Directed 401k requires careful planning, financial discipline, and a comprehensive understanding of the risks involved. It’s crucial to consult with financial experts and advisors who specialize in these strategies to ensure they fit within your overall financial plan and risk tolerance.
In conclusion, Velocity Banking + Self-Directed 401k (Leverage Mastery) has the potential to revolutionize your financial journey. By combining the power of debt payoff with accelerated wealth creation through strategic investments, these strategies can unlock true financial freedom and pave the way towards a prosperous future. Embarking on this path requires diligence, education, and expert guidance, but the rewards can be truly life-changing. So, take charge of your financial destiny and embrace the power of Velocity Banking and a Self-Directed 401k today!
Where does one get a chunk from to make payments faster
At [1:47:35] you called out my live chat comment as being wrong but I was correct. You said payments could be made every six months, and the interest is simple interest vs on an amortized schedule. 401(k) loan payments must be made at least quarterly and on an Amortized basis over the loan term as I also noted in the chat… Directly from the IRS website, “The loan repayments must be made in “substantially level payments”, at least quarterly, over the life of the loan. (See the “Loans from 401(k) plans” section at the bottom of this IRS website page you’ll find by googling the sentence above.)
Substantially Level Payments are the same as Amortized Payments. Interest plus principal must be paid with each payment to fully pay off the loan by the end of the loan term. Following your information would lead to a loan default resulting a “deemed distribution” resulting in taxation of the loan balance, (plus penalties, if under age 59 1/2.)
By the way, all amortized loans (401k, mortgages, auto, etc) are SIMPLE interest loans. The interest rate is applied to the amount owed during the payment period for the number of days in the payment period (monthly, quarterly, etc.) This is the same as how interest is calculated on a revolving/open ended debt, where it is calculated on the average daily balance, for the number of days in the payment period. Simple interest is contrasted with Compound interest. The only way Simple interest on any kind of loan becomes Compound Interest is if it is not paid when it’s due, and the loan terms call for it to be added to the unpaid principal for the next interest calculation. There is no such thing as Amortized interest, only Amortized payments (level payments that pay off the loan over the loan period) as contrasted with, for example, interest only payments which do not pay off the loan principal.
When will captions be added?
[28:00] “Tax deferring your retirement does not benefit you, it benefits the company you work for.” NOPE! There is NO benefit or detriment to the Company based on whether you put your money into the traditional (pre-tax) or Roth (after-tax) side of the 401k. It makes absolutely no difference to them.
Regarding the money the Company puts in (profit-sharing or matches), it goes into the traditional side on a pre-tax basis and is deductible by your Company when they make the contribution. This is because it’s a form of compensation and compensation, whether wages or retirement plan contribution, is tax-deductible to the Company when they pay it. Usually compensation is taxable to You. Qualified retirement plans are a special form of compensation that allows you to wait to be taxed (on the company’s or your money) until as late as when you take the money out. You can choose to have the company’s money and any of your money you put into the pre-tax side taxed sooner by doing Roth Conversions as discussed.
And the Company also does NOT benefit or suffer based on WHEN or IF you choose to be taxed on their or your pre-tax funds in the plan before retirement. Whether or not deferring tax on your 401k is beneficial or detrimental to YOU depends on a lot of financial and non financial factors of your individual situation.