Creative Financing?
Here's a creative way to use a big tax refund. This was sent in from Jake who works at a financial firm (in the IT department) in Kansas. Tell me what you think!
"My wife and I adopted our daughter from China last year. The U.S. government gives a $10,000 tax CREDIT to off set the costs of adopting. Needless to say we are receiving the largest tax return we've ever had. We're taking this money and purchasing a whole life insurance policy. What!?!! You say? But wait, it gets better."
"Next, we're going to use our credit card to pay off one if not both of our vehicles—earning some great frequent flier miles. then, we're going to borrow the majority of the money out of the whole life policy to pay off the credit card. Essentially we're financing our own vehicles. We will pay back our own loan at an even greater interest rate than what we were paying the bank because it only adds to the value of the policy (and creates more money to borrow from in the future). We'll have one (possibly two) cars completely paid off and a life insurance policy with a really decent death benefit (unfortunately, i have to die to get that money, haven't worked the angle on that one yet). Within roughly a year and a half we'll have paid back the policy loan—with interest—and can turn around to trade in a car (that has zero money against it) and pay cash for the new one (using the policy again) and the process just keeps going and growing."
Comments
Wow! That Jake is really cool and really smart! Maybe he should move out of the IT dept at his firm and give financial advice!
Posted by: Jayna | March 31, 2006 11:35 AM