We were witness of one of the biggest transfers of wealth in many years, especially on individuals planning to retire now.
Are you working for a company that gives you encouragement to put a portion of your income in a 401k? Is your accountant encouraging you to open an IRA (Individual retirement account), to save on your tax payment?
Those two are the most common vehicles to save for our later days (retirement).
Can you tell me what those two have in common?
They defer your taxes and lock the money out of your control; and that means somebody else gets to decide what to do with your money, where to invest it and you pay them for the service. We all have learnt of the poor performance those have had in the recent years and we are also aware that the managers got hefty bonuses in spite of poor performance.
The fact is, with those government qualified vehicles there is little or no chance at all for us to benefit from them. It start from a faulty premise that we are saving taxes because we will be paying the taxes later on when we will be making less money at retirement time and for that reason we will pay less taxes.
Does anybody here know what is going on with the country's economy? Is anybody here keeping track of the growing debt? The trillion after trillion that will be added to the nation's debt! That debt is supposed to be paid with the country's GDP, but since the government does not produce anything, it only collects, then the government will collect taxes to pay for that debt; and the more debt there is the more taxes it needs to collect.
This is the reason why when we have to pay taxes at the time we withdraw our retirement savings we will pay more taxes.
Now, we put money in an account where we do not have access to it, somebody else manage it with no guarantee of performance and we have to pay them for the service. On top of the above named disadvantages, when we get to take our money out, we pay more taxes. It does not look too exciting to invest on those.
Are there other alternatives to save and grow our money? Yes, there are certificate of deposits, bonds and investing in stocks.
Certificate of deposits: they lock the money out of your reach for the period selected and are fully taxable plus their performance is minimal. It does not even cope with inflation.
Bonds, they are sold at one half of face value but also lock your money out of your control, to get a decent rate of return you have to go from 3 to 7 years and taxes are deferred to the time of redemption.
Stocks, do you like gambling? Then this is for you! But with sound economics out of whack (unemployment, budget deficits, high debt and almost certain high taxes) this should be probably a short term alternative.
Is there an alternative we have not looked at? Yes many: real estate, commodities, precious metals, but with all those as well as stocks, you need lots of education so you know what you are doing or you need to find an experienced broker that hopefully will put your interests in front of his/her.
Is there something easier, safer, and predictable that does not require becoming an expert at it?
Yes, you can "Become your own Banker(TM)" and start recapturing wealth transfers. We build two fortunes in our lifetime, a realized fortune and a lost fortune; The realized fortune is comprised of savings and investments and the lost fortune is comprised of interest paid, interest lost, excess taxes and certain insurance costs.
For most individuals the lost fortune exceeds the realized fortune so if we were to reverse the process of wealth transfers, we could add them to the realized fortune and propel ourselves to a better financial security.
We are lifetime consumers, that means we are constantly buying, and when we buy we either pay interest to use somebody else's money or we pay cash and give up the interest we could have earned on that money had we not use it to buy cash. The use of money has a cost, we either pay interest to someone else to use their money or we give up interest we could have earned when we pay cash, so... if we are always paying interest to use money then why not pay that interest to ourselves?
How can we do that? We can do that by practicing banking the right way, as owners of our bank.
What is banking? Let me give you a simple definition: Banking is the capitalization, the creation of a pool of money, to use it to finance projects or our own needs, to develop a profit (payment of interest, charges), to grow and protect that pool of money.
Wikipedia has a definition of banking that involves government approval and capturing deposits from people to loan those deposits, plus more. Conventional banking is very expensive and complicated to get into it.
We can practice banking in many ways: with a savings account, with a shoe box under our bed, with a home equity line, etc. there are many ways we can practice banking, but which is the best platform we can use for that?
We need to select the best platform by using a 4 point criterion: Liquidity, safety, efficiency and tax friendly.
Can you name one that complies with all the four?
If you cannot find one, let me recommend this one: a whole life insurance contract engineered to perform according to the Infinite Banking Concept, a contract with a mutual life insurance company. For those familiar with life insurance, I have to tell you that we, the followers of the IBC, are not focused on the insurance per se; we are focused on banking and financing.
The fact that there is an insurance benefit, it cannot be avoided. It just comes with it. It has been found out that the need for financing for the average individual or family is greater than the need for insurance. If you solve for the need of financing, you end up with a huge death benefit.
It is like the restaurant owner that sells French fries, the potatoes come with skin and the restaurant owner really has no use for it, but he could make an agreement with a farmer to sell him the potato skins as food for his animals. You see, the restaurant owner has no choice; the skin comes with the potatoes and it is just an added benefit he cannot get rid of.
Anybody interested in learning how to reverse his/her wealth transfers through practicing banking, I will be happy to accommodate a consultation.
I am a practitioner and very passionate promoter of the "Infinite Banking Concept". Close to four years ago I opened my eyes and ears to the limited knowledge of money management by the use of Whole Life Insurance and when I realized how powerful and beneficial to the average American it was, I decided to open my mouth to promote it.
I will use all my training and team resources on helping you find the money that is already in your cash flow, to implement your personal banking system.
http://InfiniteBanking.com
http://Bankonyourcashvalue.com
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