Frequently Asked Questions

Below are Frequently Asked Questions about the structure and concepts that comprise a Sound Money Solutions. Please read our questions and answers below and Contact us with any questions or to move ahead with with your customized Principal-Based Sound Money Solution.

+1 - What is a sound money solution and how does it work?

Before we can discuss any sound money solution in depth, it’s first important that you have an understanding of banking. Banking is a process (not a product) that involves four essential functions to be successful–(1) a bank owner who understands the primary function of his bank is to (2) lend money to (3) a borrower, using the money from (4) a depositor. In most cases, we are the saver and the borrower. We put money in the bank and borrow it back out. The banker is the intermediary who holds and uses the saver’s money in exchange for a given rate of return.

Many people agree that they would like to own their own bank but few are willing and able to go through the arduous, lengthy and expensive process of establishing their own federally chartered brick and mortar bank. That’s where an alternitive Sound Money Solution> can help.   We encourage you to contact us for further explanation and how to begin your self-study of our time-tested, principle centered Sound Money Solution.

Where else can you find a vehicle that can eliminate negitive wealth transfers by allowing you access and use of your money without the burden of taxes, penalties or market risk? Where can you find a vehicle that allows your money to grow tax-deferred, with the ability of being accessed tax-free, provides guaranteed rates of return, tax-free dividends*, a level of asset protection, almost unlimited contributions… with the aditional benifit of a building financial legacy that can pass income-tax free to your heir?

The answer isn’t simply a product, but a process.  It’s about learning “the principles” BEFORE you worry about the type of product you utilize!  To learn more, please contact us directly and we will show you how learning these stratagies will change your future and ultimately change the financial health and expand the financial opportunities of your entire family – turing the leagacy you HOPED you might leave to the next generation into an easy, practical, REALITY

+2 Can I use my savings account, money market, mutual funds, IRA or other retirement accounts for the purpose of working capital?

Yes & No. Sound Money Strategies can be attempted with any of the financial vehicles above. Yet, in all cases you have to look beyond face value to understand the proper unshakable foundation we use , we have analyzed each financial vehicle and weighed the pros and cons of each. (We can’t give all that analysis here) but we will try…

Deposit accounts like savings and money market accounts can be tax nightmares. You deposit post-tax dollars and the growth within your account gets taxed every year. Rates of return are very speculative (and not guarenteed) so it’s very hard for your money to go to work for you. Your money is semi-safe and liquid but does not grow tax-deferred and cant be withdrawn tax-free like it would in Sound Money Solution. In addition, you do not get the tax-free legacy that will protect your family and heirs for generations to come.

Mutual funds can get a rate of return but any growth is subject to the ever-changing capital gains tax and the government controlled unknown income tax upon exit (depending on how much money the government is short on pay “thier obligations” from year to year). This means your “effective rate of return” is often much lower. However, dispite the tax-defered attribute the money within a mutual fund is also at risk of total loss, it’s possible gains are based on the markets and companies that you are invested with and this means your money is not guaranteed to grow. The only guarentee you have when investing is that the value of your account will not drop below zero. Selling and buying mutual funds costs money and can trigger short-term capital gains taxes. Depending on the state of the economy it may not be wise or advantageous to access your funds when you might need them. And due to the electronic selling off process that’s controlled by pre-set triggers that have been set by those closest to Wall Street (they loose less, because you will be the last one out). The computer driven economic modeling that’s used to set these sell off triggers is no longer managed by “your broker or fund manager picking up the phone or pressing the buy/sell button. So unfortunitly if your not in control of your portfolio on a day to day basis and a market down turn begins – you are last in line and you might get a sell in before the values dissapear completly. Liquidity then becomes a problem, which is vital for fulfilling a banking role in any Sound Money Solution.

With a Sound Money Solution, there are no transaction fees and your funds are guaranteed to grow on a tax-deferred basis. Your money is not invested in the stock market, so you have a guarantee that your principle balance will never decrease. When it does come time to access your money, you can access it in several ways and ultimately tax-free!  And once again, mutual funds do not offer additional legacy protections for your family and heirs. And be aware of radio personalities, authors, and well funded tv personalities deciving you by telling you they get 12% rates of returns on their Mutual Funds (that is just deception and greed).

IRA’s can be very beneficial, but IRA’s are meant for retirement and only retirement. There are specific rules that surround IRA’s and if you break those rules then you don’t get the tax benefits that they offer. For instance, there are adjusted gross income rules and limits on the amounts you can deposit each year. If you need to access your IRA funds before you hit the current retirement age, you will be assessed a 10% penalty fee plus you will taxed at your ordinary income tax rate. If you don’t need to spend the money in your IRA and you don’t take a withdrawl before age 70 1/2 the IRS will force you to take a withdrawl and they will take in penalities and fees up to 45% of that forced withdrawl – remember they want “their money” and they are not going to let YOU decide when they will get it.

Many people like self-directed IRA’s and use IRA’s for managing their investments. This brings up an issue called self-dealing. The owner of an IRA account is not allowed to handle the IRA funds or directly benefit from or be involved in any of the investments that are made within the IRA. If your IRA buys a home, you can’t rent it to your sister and you can’t fix the plumbing. Any involvement in that investment and it can destroy the IRA tax benefits. Therefore, in order to self-direct your IRA you will need a custodian to handle those transactions. This is an issue of giving up the conrtol of YOUR money, that’s not a wise personal stewardship choice. These custodians charge annual fees and/or transaction fees that can erode the gains on your investments. So, we do not find IRA’s to be a satisfactory vehicle for creating a Sound Money Solution.

Many people like the tax benefits offered, but let’s be clear that these plans are designed for one purpose alone and that’s retirement. Sound Money Solutions can be used for multiple pourposes. They are flexible and the unlimited ways we can use them are only limited by your creativitiy, enginuity, and generocity! We want to enhance our golden years, and our savings by utilizing our Sound Money Solution for every day financing purposes. We want to finance our own cars, homes and business equipment. We want full access, use and control of our money at all times without triggering transaction fees or penalties. We want to be able to deposit as much money as possible without limits and with no adjusted gross income annual contribution limits. With Sound Money Solutions, even high income earners can get the same tax benefits of traditional retirement plus so many more benifits that you have not even thought about. You are not shut out from growing your assets tax-deferred while still being able to withdraw them tax-free.

So, by looking beyond the face value and under the hood we can see that when it comes to growing, protecting and utilizing, the Sound Money Solution it’s far superior to any other vehicle available today. It allows you to deal with the banking equation that affects every aspect of your financial life while providing additional benefits that are second to none. For maximum financial efficiency, this is the BEST choice.

+3 - How do I begin setting up a Sound Money Solution

The first step is to meet with one of our advisors so that we can assess your desires and goals.  We have a holistic process that is customized to effectively address each client’s needs.  Our client analysis process is done by real people who lead with care, concern, and transparency. To us, your outcomes matter and allways come first. We will adress the four most important questions facing everyone about their financial future:   

1)What rate of return will your investments need to earn for you to enjoy your present lifestyle in your later years?
2)How much should you be saving to accomplish that goal?
3)How long will you have to work at your present income level?
4)How much will you be able to spend and will your money last to your life expectancy? We can give you a snap shot of where you are today in relation to where you want to be. Then upon your approval we will begin creating solutions that will empower you to accomplish much more than you had ever imagined  

+4 - Is there an application fee to start?

We deal with this question in our first one-on-one meeting when we discuss exactly how we are compensated.  But just so you are at ease, there are no application fees, nor do you ever directly pay us for your personal consultation, sample illustration generation, or personalized review. You can relax and enjoy the process, there’s no stress and no obligation.
+5 - Once I have my Sound Money Solution set up, are there any limitations on how I can use my money?
No. Unlike a self-directed IRA, or even a cash-out refinance of a home, you are not asked any questions about how you intend to use YOUR MONEY.  What a concept a “its your money”. And we belive that’s the way it allways should have been.