Tag Archives: cost
How to Bank On Yourself and Get Back the Interest You Pay to Lease or Finance Business Equipment (Page 1 of 3)
What if there was a simple way to bank on yourself and become your OWN source of financing for the business equipment you buy or lease?
You’d make the same profits that banks and leasing companies are now making on you!
Now what if I told you that, by financing things yourself, rather than through an outside lender, you could ALSO get back the ENTIRE cost of the vehicles, equipment, machinery, electronics and buildings you buy or lease for your business?
Impossible, you say?
Oh, but it’s not! In fact, over the last five years, I’ve gotten the last three cars I use for my business for free. PLUS I’ve put all the interest charges I previously paid to finance and leasing companies for cars into my OWN pocket, instead!
It’s not magic although it may seem like it is and it’s easier to do than you might think. What I’m about to reveal to you has (until now!) been a well-kept secret I stumbled on, working since 1990 as a consultant to financial advisors.
Let me show you the power of this strategy which almost any business owner or professional can use to turn the flow of money in your business and personal life from cash OUT to cash IN. I’ll use the cars (or trucks) you buy or lease for your business as an example
Let’s say you were to buy a new $25,000 car every 4 years from age 40-80 (10 cars total). To keep it simple, I’m not factoring in inflation or any trade-ins.
If you finance those 10 cars through a bank or car dealer, it will cost you $289,920, assuming a 7.5% interest rate. If you lease those cars, your cost will be $199,680.
And if you paid cash for the cars, your cost would be $250,000.
However, if you could bank on yourself and finance those 10 cars yourself, at the end of 40 years, you’d have $461,139 in your account! That means the difference between financing the cars through a bank, which would leave you $289,920 in the hole, and financing them yourself, the way I’m about to show you, which would leave you UP $461,139
is $751,059!
And, when you bank on yourself, instead of paying cash, you’d STILL come out $711,139 ahead! ($461,139 + $250,000 = $711,139)
Put another way, you have a choice: You can have the cars AND the money
or just the cars. Which would YOU rather have? (And this strategy can be used to get back the cost of ANY major purchase business or personal not just cars!)
Do you have any idea what financial strategy or vehicle will let you do this?
Well, it’s not a savings or money market account or CD. And it’s not an investment account or retirement plan or IRA. None of them will work, for a number of reasons.
You can accomplish this by using a specially-designed type of life insurance policy. Now please DON’T stop reading if the words “life insurance” turn you off, because this is NOT the kind of life insurance most people know about!
To be able to bank on yourself, instead of lining the pockets of an outside lender, you must use a policy that has been specifically designed to turn a traditional life insurance policy upside down by going for MAXIMUM cash accumulation, while minimizing the death benefit.
Graduate Student Loan Rates (Page 1 of 3)
Few students can afford to pay for college without some form of financing, and graduate and professional students borrow even more than undergraduates, with the additional debt for a graduate degree ranging from $27,000 to $114,000. Fortunately, graduate student loan rates are low. Federal law sets the maximum interest rates and fees that lenders may charge for federally-guaranteed loans. Nothing prevents a lender from charging lower fees, and many lenders offer a variety of discounts to attract borrowers.
Grants, scholarships, work-study, and other forms of gift aid just do not cover the full cost of a college education. Many students find that they must supplement their savings with government and private loans. The Federal education loan programs offer lower graduate student loan interest rates and more flexible repayment plans than most consumer loans, making them an attractive way to finance your education.
How can you figure out how much your graduate student loans will cost when the interest rate is often variable? You’ll be pretty safe if you figure on a rate of around 8%. That’s more than the current rate for federal student loans right now, but rates may go up, and most loans are capped at 8.25% to 9%. (If you’re a parent using a home-equity loan, your rates were fixed when you borrowed the money. If yours is a home equity line of credit, however, your rates are variable, so use an 8% interest rate to be conservative.)
At 8%, each $1,000 you borrow will cost you about $12 a month to repay, assuming a 10-year loan. If you’re a graduate student and you borrow the maximum allowed under current federal student loan programs $23,000 in subsidized and unsubsidized borrowing for undergraduates who are still their parents’ dependents your monthly payments will be around $276.
The rate for PLUS Loans disbursed on or after July 1st, 2006 is fixed at 8.5%, while the rate for Stafford Loans disbursed on or after July 1st, 2006 is fixed at 6.8%.
Shop for graduate student loan rates in order help manage your future debt burden. Your school’s financial aid administrator can help you consider all of the important factors when comparing loan programs. The guidelines for Federal Stafford and PLUS loans are established by the federal government; however, there are some lenders that make adjustments to the terms in order to provide savings to borrowers. For example, many lenders discount fees on Federal Stafford Loans (that normally would be deducted from the amount disbursed to the borrower). And some lenders offer borrower benefits or payment incentives on Stafford and PLUS loans. Be sure to compare lenders before borrowing your federal student loans.
When choosing a private graduate student loan, there are many things to consider. You should investigate the features of several private loans and prioritize which factors are the most important for you, including the overall cost of the loan, credit criteria and approval rate, monthly payment, grace period, deferment, and forbearance, reputation of the lender, customer service, and other services.