Guaranteed retirement income is the name of the game. I think the financial industry has done its best to destroy billions of dollars in wealth for a commission. I agree with the people who are paid for services rendered, but there should be no charges in a market situation at a loss. We must think about preserving our capital as well as building it and NOT playing our future away.
Why is it important to me?
I always want to ask this question as if I were in your place. I don't want to waste your time. How are you going to retire? Have you made money in the past three years or are you still in a rebound from the 40% haircut provided by Wall Street in typical 401K plans?
The large housing boom was partially created by derivatives. Maybe 100 people really understand these instruments. Our economy was on the verge of collapse because traders had to get their end-of-year bonus. Selling financial instruments that can bring down a banking institution with a simple price movement of 3% is not the smartest solution. Lehman Brothers, Bear Stearns and Merrill Lynch all proved it in 2008. Traders got billions of dollars for millions of commissions. I guess you have to go to Harvard or MIT to understand these trades, but math doesn't seem smart, even for a third grader.
Safe Money Millionaire is a good book that you should read if you want to retire. Rule # 1 simply states that you don't lose money and Rule # 2 – don't forget Rule # 1. This book follows these rules.
Safe Money Millionaire is a quick read that covers several topics. To save time, I will cover three key points. The end goal is financial freedom and independence.
1. Break with Wall Street – If you invest strictly for rates of return, you are doomed. It is a one-dimensional approach that does not work for the masses. Wall Street offers investment advice 24/7. This is designed to attract sheep. Mad Money Cramer recommended viewers to purchase CIT Group as it was primed for a comeback. Four weeks later, CIT filed for bankruptcy. This type of advice is found everywhere. We encourage you to buy mutual funds that have a high past performance. If you really think about it, you are encouraged to buy at a high price. To make money, you have to buy low and sell high. Gambling is a sure way to financially ruin. You have to take charge of your financial studies. You must guarantee your principle and your rate of return. The keyword here is guaranteed.
2. Pay taxes on seeds or crops – Farmers are allowed to pay taxes on seeds or crops. What do you prefer to do? If you said paying for the seed, you're right, but it also blows your 401K logic out of the water. When you pay for seeds or essentially invest in after-tax money, you are blocking your future because you know exactly how much money you will receive. If you decide to pay for the crop, it is not guaranteed how much you will pay, as the tax rate will likely be higher. To be a Safe Money Millionaire, you must pay for the seeds, not the harvest.
3. Financing yourself for wealth – This does not mean taking advantage of bank debt. Funding yourself with wealth means creating your own bank, and then using your money effectively 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 approach will absolutely secure your future.
Safe Money Millionaire is another book that highlights the infinite banking concept and demystifies traditional investment advice. In the book, the authors cite Suze Orman. When asked what she is investing in, she says: "I register it and I build it into municipal bonds. I buy zero coupon bonds and all the bonds that I buys are rated triple A, and insured, even in town, below, I have my money. "When asked how to play at the market, she replied:" I have a million on the stock market, because if I lose it, I don't care. " These statements are powerful because it invests in guaranteed returns. The bond market is NOT the stock market.
I hope this brief summary has been helpful to you. The key to any new idea is to make it part of your daily routine until it becomes a habit. Habits are formed in just 21 days. One thing you can get out of this book is rule # 1 – Don't waste money. Allow 15 minutes each day to learn about guaranteed investments like permanent life insurance, insured bonds and annuities to quickly 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 become wealthy.