We’ve talked about where to find your hidden down payment and also side gigs to earn extra money.
One thing we still need to explore is how to GROW your down payment.
It’s one thing to work extra hard to find that extra chunk of cash, but it’s another to figure how to grow that chunk of cash to hasten the process of accumulation.
This is the Wealth Formula…the mother of all formula that every investor needs to know.
After doing all those things discussed about finding that extra chunk of cash for down payment, we need to explore the rate of return.
Time you have limited control. The only thing you can do is ACT NOW!
But where you should park your money now while you save?
Certificate of deposit
Thrift Savings Plan (TSP)
Health Savings Account
Where can you save that can give you the most bang for your bucks?
You want good rate of return to beat inflation of 3.3% each year…
You want maximum tax benefits…
You want safety, meaning never lose money!
An indexed universal life (IUL) insurance can provide all these benefits better than IRAs, which limits access to money before age 59-1/2, or HSA, which limits your spending only on health-related expenses.
An IUL lets you capture the upside of the stock market (gain) beating inflation each year, but avoids the down side (loss). So your down payment money grows safely and aggressively with maximum tax benefits.
Learn more at Be Your Own Bank
When you’re ready to pull the trigger to make the purchase, you can take a tax-free withdrawal, keeping your new money in the cash account to continue to grow.