| When it comes to your real estate business I'm sure | | | | your future money to get you back on track for |
| you would agree with me when I say "cash flow is | | | | today? So, I suggest taking the emotion out of the |
| king". No matter how fast your business is growing | | | | process by making it a spread sheet decision. |
| or what its potential profits are down the road if you | | | | Make a complete list all of your high interest debt |
| don't have the cash to pay today's bills you are in a | | | | you need to pay off. The balances, interest rates, |
| world of hurt. | | | | minimum payments, how much interest you have |
| Many people turn to high interest credit cards as a | | | | already paid, etc. Oh by the way, you may want to |
| band aid for their cash flow woes. Of course, they | | | | have some Pepto Bismol handy! |
| fully intend to pay off those credit cards as soon as | | | | Now that you have real numbers take the total |
| possible but either their much needed cash flow | | | | needed to pay off those accounts and input that into |
| dribbles in slower than expected or the amount is | | | | an amortization calculator. Amount borrowed / term |
| much less than they hoped for? | | | | 60 months / interest rate 6.00% and viola' this is |
| Unfortunately for so many, those exorbitant interest | | | | your new payment if you use some of your |
| credit cards are like little plastic thieves that shout | | | | retirement funds to pay off those parasitic credit |
| use me now so that they can happily plunder your | | | | cards. |
| cash flow for years to come. | | | | If this new payment represents a significant enough |
| If you see yourself heading that direction or have | | | | savings over your current cash drain then borrowing |
| reached a point of drowning in red ink then you may | | | | from your retirement plan may make sense for you? |
| need to stop the madness by investing your | | | | Oh by the way, if you are married your spouse can |
| retirement monies in yourself. | | | | also roll all of their retirement money into the same |
| Were you aware you can set up your own self | | | | 401k and they also can borrow up to the $50,000 |
| administrated 401k plan roll over your old IRA's, | | | | maximum. |
| 401k's, etc. and then borrow up to $50,000 to use | | | | The key to making all of this happen is implementing |
| for any purpose you choose such as, paying off your | | | | a 401k where YOU have 100% check book control |
| debts? | | | | (yes, this is allowed in the tax code) not letting some |
| This is where traditional, died in the wool accountants | | | | faceless custodian control the purse strings. |
| and financial planners begin slinging mud and stones at | | | | I almost forgot, that example of 6.00% interest you |
| me chanting about never touching your retirement | | | | would be paying on the loan, who is that being paid |
| monies because you will take all of the air out of the | | | | to? Yep, you guessed right, your 401k, so you're |
| power of compounding returns and you know what? | | | | paying yourself interest not some multi-billion dollar |
| They are absolutely correct. | | | | credit card company. |
| This is one of the decisions you have to make when | | | | How great is that?! |
| considering whether or not you should use some of | | | | |