Unleashing Your 401k & Mortgage to Work for You

FAQs

Discover the answer to many of your commonly asked questions below.  The team at Corbin Marcus & Company regularly add questions from our membership here.  If you do not see your question below, please email or contact us via phone to discuss your question in detail.

Mortgage Acceleration FAQ

Q: Is this intended for use in the United States?
A: Yes. It has been in Australia, Great Britain, and Canada for more than twenty years. It has come to the US in the last few years.
Q: Do I have to make additional payments each month?
A: No. All of your expenses are paid from the plan developed by your money management system software. The software reviews your circumstances constantly and then applies unused cash to your principle without changing your lifestyle or spending habits. All of your expenses are paid from your credit card, savings, or HELOC on the last date possible before accruing interest charges, allowing your money to work for you.
Q: How fast will I really pay off my home?
A: It's totally dependent on your spending habits and your financial circumstances. Many of our clients are able to pay off their homes in a third or half  the time left on their mortgages, with the same positive cash flow they currently have.
Q: Do I have to refinance my home for this to work?
A: No. Through a sophisticated money management technology we show you how to manage a Home Equity Line of Credit, another line of credit, savings acct or checking acct as a method to pay off your first mortgage.
Q: Is this a bi-weekly payment program?
A: No, and although that will work to pay off your mortgage faster, it won't pay your mortgage off as fast as using all available funds toward debt reduction.
Q: Can I use this on an interest only loan or neg-am loan?
A: Those loans are probably the best suited for the full benefits of the money management strategy because they come with the most flexibility as far as acceptable payment amounts.
Q: I have a pre-payment penalty. Can I still use this program?
A: Absolutely! Most pre-payment penalties will allow pre-payment of up to 20% of the balance each year . . . In which case you'll code that limit into your software to ensure that you don't exceed the allowable limit.
Q: Can I use this with all my properties, my house and my investments?
A: Certainly! You will have successively more money to pay down each mortgage as you begin to pay them off. This system manages the cash you have available and as you target the mortgages you want to get rid of, you move the extra cash to that mortgage until it is gone.
Q: How does that make a difference in my mortgage balance?
A: The system allows you to leverage the idle money in your checking account every day of the month. Whenever you deposit money into your checking account, the money is applied toward the balance of your home loan which recalculates the interest charged on your mortgage. That savings is multiplied many times over in the years left on your mortgage.
Q: Why isn't this more widely used in the United States?
A: Mortgage Companies, Banks and other financial companies only make money if they are receiving interest. While it is in your best interest to save the monies you spend on interest, it isn't in theirs.

Self-Directed 401k FAQs

Q: What is an individual Roth 401K plan?
A: An individual or solo Roth 401k plan is a plan designed to be used by a sole proprietor or small business owner who employs their spouse as an employee. It is not designed to be used by companies who have several eligible employees.
Q: What is involved in setting up an individual 401k?
A: Your Corbin Marcus individual 401k can be set up by completing an easy process assisted by us. Our goal is to initiate a smooth transition to your new plan so you can begin to enjoy the benefits as soon as possible. Processing usually takes 7-10 days. If you will be rolling an outside plan into your Corbin Marcus individual Roth 401k, you will need to complete our rollover form as well. Processing of rollovers could take several weeks.
Q: When can I withdraw my funds tax-free?
A: You can make qualified withdrawals from your Corbin Marcus individual Roth 401k after the funds have been on deposit for five (5) tax years and after attaining age 59 ½.   (death and disability are also considered qualified distributions) (funds rolled into your plan from another Roth 401k may be eligible to be withdrawn earlier if they were part of a direct rollover).
Q: Can I determine what investments my 401k plan holds?
A: Yes. The Corbin Marcus individual Roth 401k is a true self-directed account. You are not limited by, or constrained to, a limited number of investments. Any investment allowed by the Internal Revenue code can be used in your account. This includes certain alternative investments, which we may make available from time to time.
Q: How much does it cost?
A: Corbin Marcus charges a one-time fee of $2650. for setting up your new plan. We  process the paperwork to begin your new individual Roth 401k and also process any rollovers. We will also be available for consultations so you get the best out of your plan.
Q: Who is your plans administrator?
A:  You are the administrator of your own plan.  We use Charles Schwab to facilitate the checkbook function of your plan that you have full control over.
Q: Does Corbin Marcus provide any type of companion counseling?
A: Yes. As an owner of a Corbin Marcus individual Roth 401k, you are eligible for creative strategies coaching for your plan. This free coaching is designed to help you with enhancing the variety of investments in your plan and make the most of your plan options.
Q: Does my Corbin Marcus plan also include a pre-tax traditional 401k component that will accept rollovers from traditional IRA’s or pre-tax 401k’s?
A: Yes. Your plan does include a traditional 401k component that can be funded for loans and that can accept rollovers from traditional 401k plans and IRA’s.