Funding Employer Matching 401k Contributions

Member return = 25% before costs

Financier = 15% before tax = 12% after tax (Partner Principal = 5%)

Member receives Tax Free = 10%

Member refinances @ 5% (Loanback from 401k) to Invest in Financier Syndicate

15% compound capital doubles every 5 periods – 5 months)

10% Doubles every 7 months

  • Find 401k member suboptimizing
  • Structure Personal Contributions via loan – tax rebate $5,000
  • $15,000 exposure
  • $20,000 in to Employer Match – Outlay $16,000 = Tax Free Profit $4,000 = 25%
  • Total Profit for member $9,000 before Costs & Split
  • Net Outlay 15-9 = $6,000 to make $9,000 = 150% ROI