Dynamic Financial Training

Do you presently contribute to a retirement plan that allows you to adjust your contributions?

If you have a retirement plan that allows you to adjust your contributions, that’s GOOD! If you can adjust your contribution and still qualify for the company’s maximized match, that’s GREAT!

Let’s say you contribute $300/month and your company only matches up to $150. For a season, you could reduce your contribution to between $150 and $200. You just created $100-$150 per month, minus the applicable taxes.

Make sure you know the timeframes when you can adjust your contributions. The goal is to free up as much cash flow as possible and invest wisely once you understand your options. Retirement plans that are fully funded, with a good company match and wisely invested are a great way to build wealth. You also want to be sure to find out if your retirement money can be rolled over into another retirement account if you should leave your current place of employment (e.g.“Rollover” Self-Directed IRA).

Stay tuned for more great tips. . .

Do you own stocks, mutual funds or CD’s?

If so, did you know that by placing at least $2,000 of stocks, mutual funds, and sometimes CD’s into a stock brokerage account you can borrow against it up to the value of the securities (regardless of your credit scores) or even buy additional stock?!

This is called a Margin Loan. Before you do this, you’ll need to discuss it with your Stock Broker to obtain a complete understanding. This can also be done at discount brokers.

You are not selling your assets so there are no tax consequences and there is never a credit check! Your securities make this a fully collateralized loan. The interest is about 10% and there is no regular repayment schedule. The loan is based on the value of the assets so if they change in value so does your borrowing ability and amount. If you don’t have the assets, find a friend who does.

Stay Tuned for more great tips. . .

Unsecured debt includes credit cards, medical bills, outstanding balances on items repossessed, Private Student Loans and signature loans where there is no collateral.

Here at Dynamic Financial Training we have Debt Negotiation attorneys that can do the following to free up money and help accelerate debt elimination. You could do this yourself, but the results are much better with an attorney.

DFT’s Attorney will reduce your unsecured debt and the payments by up to 50%!! The average person’s payment will decrease by over $200 per month, save over $50,000 in interest and be debt free approximately 7 years sooner!

TOTAL SAVINGS OF $76,593

Your credit will be negatively impacted for a while, but the question you must ask yourself is, “Right now, what do I need most, good credit or more cash flow and debt elimination?”

Obtain your free Debt Negotiation consultation with our attorneys by calling us at 336.272.7373

Does your mortgage presently include Private Mortgage Insurance (PMI)?

Private Mortgage Insurance is insurance you pay without any benefit! It protects the lender in the event your house goes into foreclosure — it protects the lender from losing money. You pay the premiums and the lender receives the benefit. Something seems wrong to me! PMI is charged on loans if you don’t have a specific amount of equity in your home (e.g. 20%). Equity is the difference in what the house is worth, minus the outstanding loan amount. Once you have that specific percentage of equity, the PMI charges should stop. See if you can stop PMI by proving you have 20% equity in your house! You will have to fight for it in many cases, but it’s a battle you can win.

Consider this:

• Lenders are only looking at the amortization balance not market appreciation (if any) and outstanding balance. So, if homes in your area have gone up in value (some areas have), this works to your advantage. Inform the lender. They will require some documentation

• Study the outstanding balance and FMV of your property to determine your 20% equity. You will have to fight! PMI can apply on all properties, even your rental properties

Stay tuned for more great financial tips. . .

Does your lender escrow your taxes and insurance?

Escrows are when you authorize your lender to take out money monthly for your taxes and insurance every time you make a mortgage payment. They hold this without paying you interest until the annual bill is due; then they pay it. If you had designated this same money to be applied to principle and you paid the fees annually, this extra money could reduce your mortgage from 30 years to about 10-15 years. This would have saved you close to $100,000. Here is the idea to create money now. Request that the lender let you pay your own escrows. The best time to do this is just after they have paid your expenses for the year. Let’s see what the payment might look like ($100,000 at 8% for 30 years):

• Principle & Interest $800

• Homeowners Insurance $75

• Property Taxes $150

• Total Payment $1,025

If you stop the escrow, you would have a new monthly payment of $800; thus, create $225/month in new cash flow. The escrow will need to be paid annually so you must develop a plan to pay it next year when it is due. It’s like an interest free loan to you!!!

Stay tuned for more great financial tips. . .

Do you have a credit score of 800 or more?

As you probably know by now, your credit scores can increase your cash flow. Utilize DFT’s Systems to increase your scores an additional 50-150 points (Back 2 Basics – Credit Enhancement Systems). Here are some ways to get your credit to create money for you: The amounts in ( ) are monthly projections.

• Get re-rated on various insurances once credit score increases ($30)

• Refinance if the numbers make sense ($200)

• Rent out your credit once specific proven criteria have been established ($200)

• Learn real estate and even consider partnering with a trustworthy experienced investor ($300)

• Borrow money to become the Banker ($150)

• Obtain lines of credit for emergencies and opportunities ($200)

• Utilize your high credit scores for job promotions or new jobs ($300)

Analyze each idea to see which one(s) best suits your situation.

Stay tuned for more great financial tips. . .

Is there a stock you want to buy?

Imagine buying a stock at the price you want to pay, and someone paying you money for that stock. This it called Selling a Put. Here is how it works…

• I decide what stock I want to buy and the price I want to pay

• I review the Option Chain to see what the Premium is. This tells me what someone is willing to pay me for the right to “Put” or allow me to buy the stock at the specific price I want. A Discount Broker can help you with this

• If the stock does not drop to the price I want, I keep the Premium paid to me without buying the stock or…

• If the stock does drop to the price I want or lower, I keep the Premium paid to me and purchase the stock for the agreed upon price

Now, your purchase price is at a discount; the price you wanted minus the Premium you received.

Stay tuned for more great financial tips. . .

If you have expenses, you have money! Take some time and review every one of your expenses (outflows) and ask yourself 4 questions about each one:

• Can I reduce this expense without affecting the quality of my life? (e.g. reduce your eating out by 50% of what you do presently)

• Can I eliminate this expense without affecting the quality of my life? (e.g. eliminate your magazine subscriptions — most people never read them)

• Can I make this expense tax-deductible? (e.g. when you have a business you can convert your children’s allowances to tax-deductible salaries)

• Can this expense make money for me? (e.g. use your internet to promote an Affiliate Program and tell people all over the world about their products & services)

You may also want to consider brainstorm with a few friends to discover new ideas or make cost cutting a game with the whole family. Whoever comes up with ideas is allowed to keep ½ of the savings. Every quarter you should revisit these expenses. As you learn more, you can reduce more. Also, meet with your vendors and ask them what can be done to reduce the expense. I’m sure that if they want to keep your business, they’ll assist you.

Put these things into practice and watch the money pour in. . .

Do you own stocks or mutual funds?

How would you like to own a stock then rent it and someone pays you money now? If you already own the stock, where is the risk? It’s similar to owning a house and selling someone the right to buy that house for a specific price, within a specific timeframe and
receive payment now. With a house, it’s called a Lease Option. In the stock market, it’s called Writing a Covered Call. We call it Rental Stock.

Here it is again. Instead of owning a house, you own stock. You then sell someone the right, but not the obligation, to buy your stock at a set price on or before a set date.

You receive a premium at the time that you sell the option. This premium is deposited into your brokerage account and is available for you the very next trading day. This is your money!!! Whether the buyer of your option ever buys the stock or not, you get to keep this money.

Stay tuned for more great financial tips. . .

Do you have retirement money from a former job that you can rollover?

There is a strategy we teach here at DFT that allows you to get access to your retirement money without having to pay any taxes or pre-mature withdrawal penalties.

Here is the strategy…

• Rollover your former job’s retirement plan into a Self-Directed IRA (www.TrustETC.com)

• Make a loan to a friend at any terms you decide (promissory note & payments are required)

• Obtain a loan from your friend at similar terms & amounts (promissory note & payments are required)

• Based on the terms, you pay your friend per the terms of the loan and your friend pays your loan directly to your Self-Directed IRA

This borrowed money from your friend can be used to pay off high debt or for any other purpose.

You have just created a win-win deal for you both…

Loan proceeds are always tax free!

Read this strategy again and again… You just received your retirement money tax free & penalty free!

Stay tuned for more great financial tips. . .