THREE STEP CASH-IN PLAN FROM HISTORIAN

[UNEEK]

For your contemplation & consideration - Something to possibly add to & grow on - UNEEK

 

THREE STEP CASH-IN PLAN  (in 4 Parts)  By: Historian

 

CASH-IN PLAN  -  OVERVIEW  (Part 1 of 4)

This Cash-In Plan walks you through some tasks and decisions you may need to address to prepare for cash-in. It is organized in steps from now to the time you set up Advisors (attorney, accountant, etc.). After that, your Advisors will help you plan cash-in and secure your new wealth, so you only need to make the first part of the journey on your own.   Historian

 

Note: This Cash-In Plan assumes that the IQD rate at RV will stay the same for some time or increase, and that it will not decrease within the first 12 months (the latter would require a different plan.)

 

3 BIG STEPS TO CASH-IN (that you must take on your own)

Step 1: Your Transition - Organize funds to cover 6 months of expenses and activities

Step 2: Your Wealth - Estimate your profit and wealth BEFORE you select your Advisors

Step 3: Your Advisors - Select Advisors who specialize in your wealth level and “click†with you

 

WHY IS THE PLAN FOR 6 MONTHS?

There are practical considerations:

You may need to set up or revise your legal and financial structure, and it may take time to find the right Advisors – you should interview several attorneys, accountants, etc. before settling on the right team. Scheduling and meeting with these people – especially if they are in demand – could take 2 weeks or could easily take 1 to 2 months. You need to plan for the longer possibility . . . so, 2 months.

 

Your Advisors will need to set up the right legal and financial structure for you, and define a plan for you to cash-in. Attorneys and accountants – especially very good ones – are busy, so they will need to fit your work into their regular schedule. They will need to develop the plan, do paperwork and filing. This could take just 1 week or as long as 1 month.

After that, you will need to set up bank accounts for the entities in your legal structure. The bank will need specific documents, and they may take more than 1 day to process these. Allow for 1 week.

 

Only after you have set up your legal and financial structure, are you ready to cash-in the bulk of your IQD (or VND). You may need to schedule cash-in appointments. Allow for 1 week.

So the time from RV to cash-in could be as little as 1 month or as much as 4 months. To make sure you are not worrying about living expenses and other financial issues, you need a plan that is comfortably longer than 4 months. That is why this Cash-In Plan is for 6 months.    (End of Part 1 of 4)

 

CASH-IN PLAN  -  STEP 1  (Part 2 of 4)

STEP 1: YOUR TRANSITION - Organize funds to cover 6 months of expenses and activities.

In Step 1, you set up a TRANSITION BUDGET. This will cover (a) Expenses for 6 Months including the cost of your Advisors, ( Debt Repayment, and © Rewards.

 

WHY DO THIS:

A TRANSITION BUDGET buys time for you to calm down, adjust and THINK CLEARLY again. It also:

- buys time to get past any bait rates

- buys time to let professionals help you pay off debts, cash-in and secure your new wealth

- helps you avoid spending wildly and wasting your wealth (due to sheer excitement!)

- trains you to start thinking like the wealthy person you now are – the wealthy all have a plan that outlines what % they will spend on different living expenses, luxuries and types of investments

 

WHAT TO DO:

Exchange the minimum amount of IQD needed to cover all the costs in Step 1. This may be one 10K or one 25K IQD note, or more. Make sure you have enough to pay for all of the following:

 

Note: You may also be able to arrange a line of credit using your IQD as collateral. If so, you may not have to cash-in any IQD to cover your transition, but the rest of your Cash-In Plan will still be the same.

 

a) Expenses for 6 months:

Basic monthly living costs:

- home costs: monthly rent/mortgage, utilities, phone, security, other

- loan payments: monthly auto or other loans

- personal care costs: food, meds, clothing, health care, dental, other

- annual: property tax; insurance on property, vehicle, health, other

- R&R: basic entertainment, recreation, travel/vacations, gifts

- Other: any regular costs not already noted

- Contingency: add 15% of the above - this is for emergencies

One-time costs:

- 6 months insurance for your IQD (and VND) if you do not already have it

- repairs, maintenance or minor upgrades to home, auto, security, other

- special personal costs – e.g. health care you have been waiting for

- $10K to $25K to set up your entire legal and financial structure  (including travel costs)

 

Debt Repayment:

Debts you can pay right away:

- small current debts with NO PENALTY if paid off – (e.g. credit cards)

- overdue bills and mortgage payments

Debts you DO NOT INCLUDE: (see your Advisors first)

- large current debts that HAVE A PENALTY if paid off – e.g. mortgage

- large overdue debts - e.g. foreclosure, outstanding taxes *

*Note: see your Advisors about this first; there are specialists who can help you minimize your costs, as well as settle any other associated legal or financial issues

 

c) Rewards:

Set aside a SMALL budget for treatsand toysthat are a HIGH priority – this will help you avoid wasting your wealth on impulse items that you later do not use – examples of treats and toys include:

- Vacations – take your time planning each vacation and make sure you get maximum value; it is easy to travel because you can afford it, but you also want to make sure you enjoy the trip and get top value. (It is also prudent to secure your wealth first.)

- Clothes – buy better quality or fill in gaps in your wardrobe, and know what you need. Avoid shopping sprees. It is easy to get carried away here – you cannot return it or sell it for much value. Once it is spent, it is gone . . . and part of your new wealth is gone forever.

 

- Toys – pick up a few dream electronics, home, hobby or other items you have always wanted, mainly small ticket items – these toys will help you stay disciplined about your budget while you set up your Advisors and prepare for cash-in. Take several months to do this – buy one, enjoy it fully, calm down, then buy the next one (LOL).

 

- Vehicles – if you can, get by with the present vehicle until cash-in. Your Advisors may recommend that your trust or corporation/LLC own the vehicle. If necessary, repair the present vehicle, rent a vehicle, or buy a low end vehicle that you can later upgrade.

 

- Real Estate – it is best to select your Advisors BEFORE you buy a new property. This is the kind of item that they may suggest your trust or corporation/LLC own. Take 6 months to compare properties while you wait. Travel and experience new locations.

 

d) Calculate your TRANSITION BUDGET:

Expenses (a) + Debt Repayment ( + Rewards © = TRANSITION BUDGET

 

e) Simple Tips to help you stay “On Budget†for 6 months:

If you are disciplined about managing your money, you may not need to do this. If you tend to lose track of your funds, then this may help you stay within your budget:

- open several bank accounts

- put the funds for (a) and ( into one account

- put the funds for © into another

- set up a third account for putting aside tax money and tithing money as you cash-in

(End of Part 2 of 4)

 

CASH-IN PLAN  -  STEP 2  (Part 3 of 4)

STEP 2: YOUR WEALTH - Estimate your wealth BEFORE you select your Advisors

To keep it simple, Step 2 only considers the wealth you gain from cash-in of your IQD (and VND). It does not include any current wealth you may have, such as a home or savings, since this is likely to be a minor percentage of your new wealth.

In Step 2, you calculate approximately what YOUR WEALTH will be after you cash-in your entire IQD investment and subtract all payouts. You will base this on the RV rate, and update the amount if the rate goes up. You need this information to help you select the right Advisors.

 

WHY DO THIS:

Knowing YOUR WEALTH is essential to securing and growing YOUR WEALTH. It will help you:

- select Advisors that have clients similar to yourself in wealth and lifestyle

- reset your priorities, now that wealth has given you new options

- remind yourself that luxuries REDUCE YOUR WEALTH, so think before you spend

- spend only on priorities and maximize YOUR WEALTH

 

WHAT TO DO:

YOUR PROFIT is the money you will make from cash-in of your total investment, less ALL payouts. To calculate YOUR PROFIT, do the following:

a) Calculate your Proceeds from cash-in:

Calculate the money you will receive from cash-in.

Use the cash-in rate at RV (you can update this if it goes up).

 

Calculate your Payouts:

These include:

- taxes on the proceeds (use the highest % for now)

- tithing or causes

 

c) Calculate YOUR PROFIT:

Proceeds (a) – Payouts ( = YOUR PROFIT ©

YOUR WEALTH is what you will have left after you spend part of YOUR PROFIT on expenses, large debts and big purchases (excluding a new property). To calculate YOUR WEALTH, include the following:

 

d) Your Transition Budget:

Use the amount from Step 1 (d)

 

e) Large Debts NOT included in the Transition Budget:

These include large items you excluded in Step 1 ( :

- current debts that HAVE A PENALTY if paid off – e.g. mortgage

- overdue amounts - e.g. foreclosure, outstanding taxes

 

f) Luxuries and Big-Ticket Items NOT included in the Transition Budget:

These include:

- high end vehicle or boat

- luxury goods

- big vacations

- other

 

g) Calculate YOUR WEALTH:

YOUR PROFIT © - Transition Budget (d) - Large Debts (e) - Luxuries (f) = YOUR WEALTH

(End of Part 3 of 4)

 

CASH-IN PLAN  -  STEP 3  (Part 4 of 4)

STEP 3: YOUR ADVISORS - Select Advisors who specialize in your level of wealth and “click†with you

 

In Step 3, you select YOUR ADVISORS and work with them to develop your Cash-In Plan. Following this, you will proceed with the bulk of your cash-in. You need to know all of the information in Steps 1 and 2 in order to select the right Advisors.

 

WHY DO THIS:

Not all Advisors are equally qualified to help you. You need Advisors who are well versed in assisting clients with needs and considerations that are similar to your own. This is because:

- they are deeply familiar with the laws and rules that will most affect you

- they have perfected their theories on many clients (you will not be a guinea pig)

- they know how to work with laws and rules to maximize the PROFIT from your cash-in

- they know how to help you minimize taxes and manage your wealth year after year, so that you can achieve and maintain the life that you want

 

WHAT TO DO:

a) Interview your Advisors:

You have set aside $10K to $25K to set up your entire legal and financial structure

- DO NOT tell the Advisors you interview that this is your budget

- Always come across as a well-heeled penny pincher

- DO NOT tell the Advisors you interview all your details

- Give them a high-level overview with ball park figures

- Make sure you interview at least 3 candidates for each Advisory role

- Look for Advisors who understand what YOU want (and do not push their views)

- DO NOT sign any documents that charge you for a FREE consultation

- DO NOT sign or pay for any documents or analyses you did not ask for

- DO NOT accept any offers that appear to be generous "free" analyses

- If you retain this Advisor, you may be charged later for the service

- Once you have agreed on the specific services, you will likely need to sign a contract or form agreeing to these services. Read all the fine print, and make sure you understand absolutely everything that is described. Do not hesitate to ask for clarification. Your Advisors will respect you and give you better service.

 

Select your Advisors

Make sure your team can work with each other; they should not be “flying soloâ€.

At the very least, your attorney and accountant MUST work as a team.

- Ask the attorney if he/she can recommend a good tax accountant – the attorney will often already have accountants they prefer to work with; make sure it is because the accountant understands the legal work (what the attorney needs)

- Do the same with the tax accountant – ask him/her about a good attorney

- This will help you create a team that will work together to help you

 

c) Give all the information in Steps 1 and 2 to your selected Advisors

Have them set up your legal and financial structure, and your Cash-In Plan (e.g. the accountant may want you to delay cash-in if it changes your tax %). The Cash-In Plan should include:

- where to cash in

- how much to cash-in at a time

- when to do it

- where to deposit it - into which part of your structure (trust, corporation/LLC)

- other advice

Make sure both your attorney and accountant agree with your Cash-In Plan.

 

d) YOU ARE NOW READY TO CASH-IN

[Psych]

Thanks....hopefully I will need this in 2013!

[Henry Guidera]

Thank you for this important information.

 

Go RV

[sandfly]

THANKS

[aliciadogz]

Thank you very good information.

[Rayzur]

Certainly helpful suggestions as to how to go about this...

Much will likely depend upon what the actual exchange rate is going to be. If it is a considerable amount of money... there are some excellent tax attorneys out there, and unless he/she argues with himself a lot or is a multiple personality, it would reduce disagreement between two.... 

Might be a good time to start reading feedback/attorney reviews, bar reviews, check partnership profiles, cases handled, who they represent as clients, etc etc and maybe ask around who is considered good.

If you want to go with team, and don't already have a CPA might be good idea to do the same research on that profession, and who practices in your area and I would have all of this research done NOW, if not before now...

You'll have 6 months to do all of the above if it goes down this month.... Probably good to remember you have to have it all in place by year's end. So if this were to happen 15 December, you're gonna have to hussle big time... (not saying its going to delay for this long, just remember that the 6 months is relative to year's end, and that date is the critical date in terms of time).

Personally I wouldn't do any of the bank account opening, and setting up until I talk to my attorney, though, that comes from experience in having done that kind of thing, and being kicked upside the head for having done so....

Again, depending upon how much you're dealing with, you can really screw things up playing "the banker without a clue" game

And Adam has a whole series of these arrangements set up for DVers if ya don't want to have to navigate all this stuff on your own.....

Just some additional thoughts to some great ideas...

Thanks Uneek!!

[dinarling00]

Very informative  and good information for me to save in a folder that I have started. Can you tell me more about this VIP deal?

$400 seems pretty steep for me to just "jump in". I notice that you are in it and several others here are tagged VIP also. What are some advantages/benefits I would receive for this much money. Who provides these and what are their credentials? Thanks, if I'm not making myself clear, please let me know.

[MillieChatham]

Please check out Adam Montans's RV Intel for more information about all of this.

[dinarling00]

I figured that green button was good. Thanks for the information I will check that out

[TexasGranny]

Very informative  and good information for me to save in a folder that I have started. Can you tell me more about this VIP deal?

$400 seems pretty steep for me to just "jump in". I notice that you are in it and several others here are tagged VIP also. What are some advantages/benefits I would receive for this much money. Who provides these and what are their credentials? Thanks, if I'm not making myself clear, please let me know.

You can find out what is in VIP at this link - http://dinarvets.com/forums/index.php?/topic/50344-what-is-vip-and-what-do-you-get/

You can get Adam's Free Cashin Guide here http://dinarnews.net/cashinguide.php

 

[dinarling00]

Well thanks, Ms. Granny. Can you tell me what  Adam Montana's credentials are?

[rockfl9]

Way to complicated for me.  At 78 I hope to plant the money in a series of annuities paying 6-8% and enjoy life where I am . When you talk advisors , lawyers and CPA's those are expenses that may not pay off. Dont need a boat or bigger home. Well maybe a new car every year!

[coorslite21]

A good Tax Attorney, and a Good CPA.......beware of the wealth managers and advisors working for the banks.........the banks want to make money with your money.......in most cases they don't give a Rat's A$$ about you......also be cautious of your Edward Jones type financial advisors........they only make money if you have your funds with them......they will promise the world.......

no one can take care of you.....as well as, you, yourself.......

get educated......be smart.........but mostly use common sense and self discipline.....

you don't need a list of advisors unless you want to try to impress all of your friends with how important you are.........because you have this awesome team of advisors........JMO