Golden The Ultimate debt Payoff Program

During your career, you earn and save money in various ways. For example, your employer might provide a 401k with match up to a certain percentage. You can add money to an IRA, but both of these channels for saving are capped. If you want to save more, you might put it into stocks, bonds, futures, or into a diversified fund. All of these channels bear the risks of the market. When the market tanks, so do your investments.

Personal savings? You can draw on an IGIC, and funds can grow at a higher rate than any bank or credit union will offer you.

401k or IRA accounts? An IGIC gives you many benefits above and beyond either type of retirement fund.

Can you reduce costs in any areas such as premium cable channels, online database subscriptions, a gym membership you only periodically hope you’ll use? Find lower cost or no cost solutions and funnel those dollars into your IGIC.

Once you know how much money you can put in, then total up your debt. This can be eye opening, because many people only think of credit cards as “debt.” They think, “I’m buying my home with monthly mortgage payments. I’m leasing to own a luxury car with a one dollar buy out at the end of the term.” In fact, these mortgages, traditional car payments or lease to own options are debt. Much of your payment goes to servicing the interest on the property you are in the process of buying.

Let’s say you bought a $300,000 home in a middle of the road suburb with a 3.8 percent interest rate and a 10% down payment. Your loan will start at $270,000, your monthly payment will be $1653.92 and by the end you’ll have paid $182,910.55 in interest, and a total of $452,910.55 plus tax, insurance and other fees.

Your Audi A7 with a list price of $70,000 and a 4.5% interest rate? Ugh

Credit cards? Maybe $10,000 doesn’t feel like a lot, and you’re making payments, but if you carry that balance with 17% interest plus prime over a number of years, the dollars add up.

With the GOLDEN payoff plan you’ll reduce your payments to your loans to cover interest and a small amount of principal, then redirect those funds to the IGIC. Your investment will grow at a higher rate than the interest you are paying on your loans, and you’ll see those gains overtake the debt you are carrying.

Once your smallest debt equals 80% of the total in your IGIC, you’ll take a low interest loan against your policy and pay off the debt. By retaining a 20% buffer, you assure that you have an emergency fund in case anything catastrophic should occur. This also helps you maintain positive growth in your IGIC above the rate of the loan. You’ll repeat the process, adding in the money saved on the paid off loan interest, accelerating the growth until all of your debts have been paid in full – student loans, home, credit cards, car. Then your IGIC will pay off the low interest loan you’ve maintained to cover the debts. You will still have interest earnings in your account, and you may continue adding to the account, providing you funds that you can draw for your retirement.

Are you ready to take the first step to becoming debt free?