Sacred Account: The Most Versatile Financial Tool Available
As an investor, I like options. That is one of the main reason I don’t invest money in retirement plans. It takes away my options. The more options we have, the more potential for financial success we have. The less options we have, the more restricted our investments will be.
It may sound like I am making a pretty big statement by saying that the Sacred Account is the most versatile financial tool available, but I’m going to show you why I’m right!
What can the Sacred Account do for you? Let’s take a look!
#1- Saving money. The Sacred Account acts as a high yield savings account. That is the most basic purpose of a Sacred Account. When someone asks me what the Sacred Account is I tell them it is kind of like a savings account except it pays compounding interest of 3–5% per year on average, it grows tax free, and the account still continues to credit you the compounding interest even after you’ve taken your money. It is like a savings account but better!
#2- Investing money. For those who are specifically considering this for investing, the Sacred Account can serve that purpose. First, it can be structured with higher than normal dividends and overall growth to build a tax free nest egg for retirement. This is a way a more traditional investor can use the account. Secondly, you can do what is called arbitrage investing. The means that you earn at a rate higher than what you borrow or withdraw at. For example, if I earn 3–5% and borrow at 2–3% interest expense then I earn a positive arbitrage spread on my money and I can use those funds to go invest in real estate. I’m essentially being paid a 1% profit to use my own money.
#3- Debt management. There are 3 things you can do to manage your debt with the Sacred Account. The first of these is consolidation. If you have many different debts such as credit cards, and you have enough money in the Sacred Account, you can borrow against your account to pay off your credit cards in one swipe and then you just pay back your Sacred Account instead. Like a consolidation loan, except it pays you.
You can also do something called The Debt Buyout. This is where you line all of your debts up smallest balance to largest balance. You pay only the minimums on all debts. You take your free cash flow in your budget and contribute it to a Sacred Account. Once you have enough money in your Sacred Account to pay off your smallest debt, you take a loan against your account and do so. The payment you’ve just freed up goes towards repaying your Sacred Account plus you are still contributing your free cash flow. You continue to borrow against the account as soon as you have enough money in the account to pay off the next smallest balance. You continue until you are debt free. The result? No debt. A growing Sacred Account that has accumulated LOTS of money in it and even better is the freed up monthly cash flow you have from not having any debt!
Lastly, you can refinance debt. If you have enough money in your Sacred Account you can borrow against it to pay off a higher interest rate debt and pay yourself back at a lower rate. This is an excellent way to save on interest with the account as you handle your debt.
#4- Tax Sheltering. The Sacred Account grows tax free. This means that any dollar you put into it will never be taxed again. There isn’t a better tax shelter than that! Additionally, if you own a business and have employees you can structure executive compensation programs with your Sacred Accounts for a tax benefit. The company will contribute net earnings into the Sacred Account, growth them tax free, and then borrow against the value of the account to pay an executive retirement or pension to a retired employee and be able to write off that payment on the company taxes (while the account still continues to grow). Pretty incredible right?
#5- Income. The Sacred Account produces income several different ways. And the best part is all of them are passive. You can have the dividends from the account paid directly to you as income. You can also withdraw income from the account tax free in the form of a loan. Lastly, you can borrow against the account tax free to acquire assets that pay a monthly or quarterly passive income as well.
#6- Asset Protection. This is one of the biggest uses for the Sacred Account. It is considered a unilateral contract with means that no other party can access it. So any money you put into the account is pretty much protected!
Sacred Accounts can protect your assets from probate, they can pay out a tax free benefit to your heirs shielding them from taxes, and it can be structured with a trust to provide a plan to avoid estate taxes.
These 6 steps are pretty awesome and make the Sacred Account very unique, but most versatile? Hang on let me seal the deal real quick….
The Sacred Account has NEVER lost money.
This makes it literally the only asset in existence that is capable of all of these things I’ve mentioned without losing money. Want to prove me wrong? Do it and I’ll send you $100!
The fact is, there isn’t another financial tool in existence that can match The Sacred Account.
If you’re reading this and you’ve been investing in 1 dimensional accounts with your bank or retirement plan, it is well about time that you looked into a Sacred Account.
Click here to get more information!
To Purpose, Wealth, and Freedom.
Jerry Fetta is the CEO and Founder of Wealth DynamX. He is a nationally recognized financial expert featured in Forbes, Yahoo Finance, Fox, Chicago Weekly News, New York Finance, interviewed on over 45 podcasts with world renowned experts, earning endorsements and affiliations throughout his career with names like Grant Cardone, Dave Ramsey, and Pamela Yellen.
Jerry’s mission in life is to help create millions of financially educated and solvent families achieving greater financial freedom and sharing the truth about money with those around them.
Learn more at www.WealthDynamX.com
(DISCLAIMER: The information in this content should not be considered tax, financial, investment, or any kind of professional advice. Only a professional diagnosis of your specific situation can determine which strategies are appropriate for your needs. Wealth DynamX can and does not provide advice unless/until engaged by you.)