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A secured property loan uses the equity you have in your property and gives you cash that you need to pay off debt, make home improvements, make a large purchase or finance an education. Secured property loans determine the value of the property you own less any amount due for a mortgage and gives cash for this amount to borrowers.

Because mortgage rates and home loan rates are at an all time low in the United Kingdom, many people are discovering that it is financially prudent to borrow against their property equity. The money one receives from a secured property loan can be used for a vast array of purposes.

Many people own land and seek to build a home on the land. In many cases, the individuals have a mortgage on the land as well. By seeking a secured property loan, these individuals can sometimes get the cash they need to build a home on their property without interfering with the current mortgage.

Other people use a secured property loan to make home improvements on their existing home. Even if they already have a mortgage on their home, they can usually borrow against the equity. Home improvements can be very costly and most people do not have the money needed to make these improvements. For this reason, many people choose to borrow the cash needed for home improvements. By borrowing against their property in a secured property loan, they can get a much lower interest rate than if they decide to finance the improvements through a finance company.

Another reason why people borrow is to obtain cash to consolidate debt or pay off balances on high interest yielding bank cards. Many of the bank card interest rates are nearly three times more than one would pay for a secured property loan. It makes good financial sense to pay off high interest loans with one low interest loan.

In addition to making home improvements and paying off debt, others get secured property loans to finance an education or make a large purchase, such as an automobile. Automobile loans are sometimes more difficult to get than a secured property loan and usually have a higher rate. For this reason, many people in the United Kingdom are opting to pay for an auto with the cash they receive from a secured property loan. In addition, those who pay cash for an auto are usually afforded a better deal than those who finance the automobile, saving the individual even more money.

To get a secured property loan, you will have to get a basic valuation on the property to determine what it is worth. Your lender will determine the amount of equity you have in the property by subtracting any amount due on a current mortgage. The lender will then be able to tell you how much you will be able to borrow.

This should be the end of 401(k)s

The Conventional Wisdom (CW):

The conventional wisdom when you set up your 401(k) for your employees was that the expense of doing a retirement plan would pay for itself with increased ability to hire and retain good people.

Since almost every business out there has a 401(k) most businesses think that is the way to go. No one ever told you there is a much better plan for you and your employees.

The people that helped you set up that very complicated labor intense and expensive 401(k) were 401(k) “Experts”. They were vendor trained (An industry that makes money complicating simple things) to sell you a 401(k). They were never trained to give you any other options. Most were so well trained by the vendor that they didn’t even know there were other options.

Now you’re stuck with a high maintenance cost, cash consuming, liability creating monster that has cost you and your employees thousands of dollars. Because of 404c compliance rules you could be libel for your employee loses.

Common Sense: The common sense approach would be to ask yourself these questions “Why does trying give my employees’ help in setting up a retirement plan have to cost me so much money and time?” or “If my employees are making their own investment decisions why should I be responsible for their losses?”

The common sense answer is a Self Directed Retire Plan (SDRP). A SDRP is so simple no “Expert” is needed. There are no requirements from ERISA or the IRS. You don’t need a Plan Administrator, a Bookkeeper, Financial Advisor, CPA or a Third Party Administrator. You do not have to do 5500 filing or any filing with the IRS.

If you are matching your employees’ contributions you can continue if you wish or pay performance bonuses that are not discriminatory.

Since you are now offering your employees a new option like a safe investment with 8% guaranteed interest rate on all their contributions they can plan their retirement easily because they will no what their return will be.

If you would like to know more about the newest way to have an inexpensive, low maintenance retirement plan without any loss liability please contact me.

Jim Warr ~ Warr Financial Group