Once you realize the benefits of being in control of your money and becoming your own banker, you start to question what other funds are available to you to take control of.

And most likely, you’ll see a quarterly statement from your company’s 401K and think there must be a better way to make these funds work for you rather than the very conservative investment they are currently in.

Your thinking is absolutely correct!! If you are currently employed with the company matching your 401K, you may not have access to the funds but you may be allowed to take a loan against the funds. This is a question to pose to your human resource department and then my staff and I can help you strategize as to taking the max loan allowed and then replacing that loan back to the 401k so that your policy continues to grow but you also now have a whole life insurance policy as well.

A second option is for those who have a 401k from a previous employer. If this is the case, you have full access to your funds to use as you wish. Two things need to be noted on the withdrawal of these funds: the funds are taxed upon withdrawal and if you are younger than 59 there may be a penalty for early withdrawal. This brings us again to how my staff can help in strategizing. Regardless of when you withdraw these funds – now or at maturity at age 59 or older, there will be a tax. So the only thing to consider is the penalty amount and whether the penalty is worth the advantage that you will gain from using your funds today rather than later.

Two questions to ask:

  1. When is the dollar stronger? Today or later?
  2. Do you need the money today or later?

Typically we are in need of cash today — for a car payment, mortgage payment, credit card debt etc so it would benefit us to pay the penalty and the tax to withdraw the funds, set up a policy and begin using the funds rather than letting them be controlled by another entity. Again, my staff and I are well trained in finding the best solution for your unique situation and we are happy to go through these options with you. Please contact our office to set up an appointment.

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