Today’s economy may provide your customers wealth building opportunities they may never have considered in the past. With traditional investment sources, such as the stock market, falling to 15 year lows, many consumers should consider moving their money to “Their Own Bank.” No not the bank down the street, but rather they should become their own bank. Many people who have liquid assets continue to buy big ticket items, like cars, boats and furniture, and end up borrowing the purchase from their local bank. If they became their own bank, the interest they would pay these institutions could go to benefit themselves and build wealth along the way.
Here’s what I’m talking about, let’s say Joe has $10,000 in his stock fund, and he wants to buy a car that requires a $10,000 loan. If he were to get that loan from his bank, it would be at 7.5% interest over 4 years, and he would have payments of $241.79 per month.
If Joe took the $10,000 from his stock fund and bought the car; then executed a loan to himself from the “Bank of Joe,” for $10,000 at 7.5% for 4 years, at the end of the 4 years Joe would have paid himself $11,605.92. This would mean his $10,000 returned him 16.05% over 4 years TAX FREE, potentially much better than the stock market would have done over the same period of time.
With a falling stock market and uncertain financial times ahead, your customers need to change how they view money and how they utilize debt to their advantage.