Your Family Bank Plan
Working with a Your Family Bank® Agent, together you will explore all available avenues to find a way to fund Your Family Bank®. In most cases, working together you will find ways to fund Your Family Bank® with little or no increase in monthly budget.
You will be surprised at all the places the Your Family Bank® Advisor will find that may actually be additional sources for funding Your Family Bank®, enabling you to reach your goals and dreams faster than you thought possible.
Let’s take 401(k)’s as an example. There are only four types of money:
- Free money
- Tax-free money
- Tax-deferred money
- Taxable money
Now we all love free money, but it is hard to come by. There are only a few sources of free money and your 401(k) is one of them if your company matches some of your contributions. If you make $100,000 and you are contributing 12% to your 401(k), at the end of the year you would have $12,000 in your plan. If your company was matching up to 5% of your contributions, they would have contributed $5,000 into your account. THAT’S FREE MONEY! So your 401(k) at the end of the year would be worth $17,000!
But if they are only matching up to 5%, the additional $7,000 that you are contributing to your 401(k) is going from free money to tax-deferred money. You are skipping tax-free money. This money could be used to fund Your Family Bank® and be used for not only for retirement, but also to get out of debt, save for college, stop paying 34 cents of every dollar in interest, create an emergency fund, change your life… The possibilities are infinite.