Employees of large corporations for most part always had ability to borrow from their 401(k). Now small business owners, such as freelancers, consultants, and entrepreneurs, who have left corporate world also have that choice. They can borrow up to lesser of $50,000 or 50% of balance in their 401(k). A Solo-Owner 401(k) plan gives small business owners opportunity to defer up to $40,000 per year in a tax deferred retirement plan and flexibility, should they ever need it, to borrow from their retirement funds.

The Solo-Owner 401(k) plan goes under different names depending on provider of plan. Make sure you are aware in advance of fees that may be associated with rolling over or transferring your money into or out of your Solo-Owner 401(k) plan. For more information on Solo-Owner 401(k) plan and other ways to get money out of your retirement plan while minimizing taxes and penalties visit www.InvestSafe.com

A better term for a "self liquidating loan" would be a Roll Over Loan, Roll Program or a Compensating Balance Loan.

What is a Roll Over Loan?

Simply put - a roll over loan is a security-based loan that starts out with a security such as a CD, zero coupon bonds, government savings bonds, debentures, bank notes, etc. as collateral for loan and as final payment for loan.

These can be purchased at a fraction of their end value and can be used as collateral for a loan.

Example 1a:

An example would be Government Zero Coupon Bonds. These bonds can be bought at a discount of normally 33% of face value. A $1,000 face value bond could be bought for around $330. The government guarantees you a return of $1,000 or a $770 profit. Offering this secured financial instrument to a financial institution as a compensating balance for your loan creates a form of a self-liquidating loan. Borrow $1,000 and receive $770.

Example 1b:

Another example would be life insurance or annuity. If you have an annuity that pays a fixed or variable amount it would be possible to instruct this financial instrument to be used as a compensating balance for loan you want to take out. In fact many times insurance company could be in a position to arrange this form of a self-liquidating loan via an annuity.

Example 2:

You will need to find an investment group that functions in an offshore environment. (An offshore environment provides you with higher interest rates and higher returns on your money along with lower lending rates.) Use this group to leverage your money, thus creating a compensating balance. This creates, in effect, a "self liquidating" situation. In this example you not only receive a "loan" but you will receive a residual income besides!

Final Note.

Remember, if there is no security placed up front, NO lender will even consider providing a loan under these conditions. However, there are places where you can find information on how to create a roll program! You just have to find one that you can trust.