Guaranteed retirement income is the name of the game. I believe that the financial industry has done everything possible to destroy trillions of dollars of wealth for a fee. I agree to people being paid for services rendered, but there should be no fees in a losing market situation. We need to think about preserving our capital, as well as building it and NOT gambling our future.
Why is this important to me?
I always want to ask you this question as if I’m sitting in your shoes. I don’t want to waste your time. How are you doing in your retirement? Have you made money in the last three years or are you still on a 40% haircut rally that Wall Street provided in typical 401K plans?
The great real estate explosion was created in part by derivatives. Maybe 100 people really understand these instruments. Our economy was on the brink of collapse because traders needed to get their year-end bonus. Selling financial instruments that can wipe out a banking institution with a simple 3% price movement is not the smartest way to do it. Lehman Brothers, Bear Stearns, and Merrill Lynch proved this in 2008. Traders leveraged billions of dollars for millions in commissions. I suppose you have to go to Harvard or MIT to understand these trades, but math doesn’t seem too smart even for a third grader.
Safe Money Millionaire is a good book to read if you are interested in retiring. Rule n. 1 simply states that you don’t lose money and rule no. 2 says: don’t forget rule no. ° 1. This book adheres to these rules.
Safe Money Millionaire is a quick read that covers various topics. For the sake of time, I’ll cover three key points. The ultimate goal is financial freedom and independence.
1. Break with Wall Street: If you invest strictly for rates of return, you are doomed. This is a one-dimensional approach that doesn’t work for the masses. Wall Street offers 24×7 investment advice. This is designed to attract sheep. Mad Money’s Cramer recommended that viewers buy CIT Group because he was primed for a rally. Four weeks later, CIT filed for bankruptcy. This type of advice is seen everywhere. You are encouraged to buy mutual funds that have performed high in the past. If you really think about this, you are encouraged to buy at a high price. To make money you need to buy low and sell high. Gambling is a sure path to financial ruin. You need to take your financial education into your own hands. You need to guarantee your principle and your rate of return. The keyword here is guaranteed.
2. Pay taxes on the seed or crop: Farmers can pay taxes on the seed or crop. What would you rather do? If you said pay for the seed, then you are correct, but this also ruins your 401K logic out of the water. When you pay for seeds or basically invest in after-tax dollars, you are locking in your future because you know exactly how much money you will get back. If you decide to pay for the harvest, how much you will pay is not guaranteed because the tax rate will most likely be higher. To be a safe money millionaire, you must pay for the seed, not the harvest.
3. Financing for wealth: this does not mean leveraging the most with bank debt. Financing for wealth means creating your own bank and then using your money efficiently to get rich. Why did Willie Sutton rob banks? Because that’s where the money is. This strategy is one of the strongest I have seen and using the infinite banking concept with a long-term focus will absolutely guarantee your future.
Safe Money Millionaire is another book that highlights the concept of infinite banking and debunks traditional investment advice. In the book, the authors quote Suze Orman. When asked what he invests in, he says, “I keep it and build it in municipal bonds. I buy zero coupon bonds and all the bonds I buy are triple A rated and insured, so even in the city it sinks, I get my money “. When asked about playing the market, she says, “I have a million in the stock market, because if I lose it, I personally don’t care.” These statements are powerful because you invest in performance guarantees. The bond market is NOT the stock market.
I hope this short summary has been helpful to you. The key to any new idea is to incorporate it into your daily routine until it becomes a habit. Habits are formed in just 21 days. One thing you can take away from this book is Rule No. # 1: Don’t lose money. Schedule 15 minutes each day to learn about guaranteed investments like permanent life insurance, insured bonds, and annuities to start your path to financial freedom. These require education on your part. When you do this and combine it with the Infinite Banking concept, you will not only be financially independent, but you will also get rich.