Plan For America Q+A: First Time Homeownership

Entire contents copyright 2024 by Terry E. Nager , CFP®

1. How does Plan For America provide a pathway to home ownership for first-time home buyers?

The contract among the Federal Government, the 50 states, and the For America Security Trust (FAST) representing the people provides for the FAST members, those whom are first-time home buyers, to be able to collateralize the money in their accounts without it being considered a distribution for tax purposes.

The loans will be fully collateralized by the assets in their accounts but the money will remain in the account continuing to earn for retirement benefits. The first time home buyer will be able to borrow the money with a five-year interest only loan that will begin to amortize starting in year six.

If the loan goes into default, the FAST would pay the lender and a FAST loan would be issued to the borrower on an interest-free basis with repayment coming from excess returns on the borrower’s FAST account and also secured by a life insurance policy. This policy would be guaranteed-issue, uni-sex, and uni-age with the annual premiums added to the loan balance.

Upon the death of the borrower, the proceeds would be placed into the account of the borrower and pay out 4% of the balance per year until paid in full. Therefore, the FAST will be fully repaid and the 2% annual trust charge will cover the time-value of the money that was paid out for the loan balance.