With great anticipation, many tuned in to see and hear Ben Bernanke in his first new conference following the FOMC meeting. I must admit, had it on in the background and zeroed in as I heard things that caught me attention! But, one must ask, do we know anything more now than we did before the conference? I am not sure that we do! I think the only thing he made clear is that he is going to stick to his plan, that it is working and he believes it will continue to help the economy grow...
I wonder what the traders are really feeling? The dollar is once again weaker and precious metals have spiked. As the dollar gets weaker, our money doesn't go as far... fears of inflation continue to haunt us and the dollar will probably not see and gains for months to come! So, am thinking that at least through the end of the year, more of the same. If anything can be good about this it is that interest rates will probably not move much, giving buyers a little more time to find and close on the purchase of a home.
This also leads me to believe that although the market may go higher for the short term, it is setting up for a correction and your investments will once again take the hit! Be cautious, look for investments that do not put your money at risk with every bit of news that hits the press! Learn and understand how banking really works. There are a wealth of books on the topic and that insight will help you to find a way to invest your hard earned money while minimizing or eliminating risk!
Our Tuesday evening Online seminar is a great place to start. An hour of your time will give you great insight into how banks work and how they make money!It will help you to see how you can mimic the banks and grow your investments with little or no risk!
Wednesday, April 27, 2011
Monday, April 25, 2011
The Article read: "Tax Me Now or Tax Me Later" !
I just read an article from Smart Money titled “Tax Me Now or Tax Me Later”. The article discusses the merits of shifting money from the traditional IRA to a Roth IRA. It suggests that the Roth IRA will preserve your retirement savings and make those savings go further by taking advantage of an opportunity that before 2010, was not available for individuals making more than $100,000. Although the article was written last year, it is still rather appropriate.
The article suggests that the best place to preserve your money for retirement is in a Roth IRA. The author’s argument is that taxes in the future will be much higher than they are today! And, by converting from the traditional IRA to the Roth will allow you to pay taxes based on today’s tax structure, rather than the tax rate 30 years from now. Well, I agree! But my ability to agree ends with the argument of taxes being higher in 2040! If you only have few thousand dollars to invest and you make less than $120,000 as an individual, then maybe the Roth is the place for you. But for those looking to invest significant savings on an annual basis, you are out of luck! The limit on contributions is $6,000 for individuals over 50 and $5,000 for individuals under 50.
It is true that the Roth is an “after tax” investment, but the money is not liquid and is not easily accessed, except for a few reasons such as a deposit for first time home buyers or for education (ask your tax advisor for specific details), until you are 59 ½. Well if it is for Retirement you say, why do I need it before then? I can think of a multitude of reasons. But let me ask this question: If you could borrow the money in your retirement account, pay it back and receive guaranteed growth on your investment, even during the time that the money was being used, would that interest you? The bad news is that the Roth will not allow you to do that, but the good news… it is possible with a very safe, guaranteed preservation of principal and guaranteed tax free growth investment vehicle. And, like the Roth, you can draw tax free supplemental retirement income, but unlike the Roth, you can begin to draw the supplement income at any age vs. 59 ½ with the Roth!
Participating or Dividend paying whole life insurance, set up for maximum accumulation of the cash value is the vehicle I use to build a privatized banking program for my clients. Allow me to introduce you to two brothers, Joe with a privatized bank and Pete, who has a relationship with the local banker in town.
Both brothers are going to purchase a car and intend to borrow $25,000 for the purchase. Both brothers buy the same car for the same dollar amount, the same loan term and the same interest rate. Both brothers will pay $587.00 a month for 48 months and in the end, will have made payments in the amount of $28,176.00. But here is where the similarities end. Pete has a four year old asset, and hopefully, a good payment history so that he can continue a borrowing relationship with his local bank.
Joe on the other hand, has every penny he spent for the car plus the interest he would have otherwise paid to a lender! That money was paid back to his cash value over the four year payment plan. Joe has the depreciated asset as well, but if he sells the car and buys another he could see a net positive gain of upwards of $39,000.00. Which brother made the wiser choice? This is a very basic explanation of how privatized banking works. If Joe buys another car and still another car, do you see how he is growing his retirement?
If you would like to know more about privatized banking, join us for a FREE Seminar on Tuesday evenings. The article suggests that the tax rates in future years will be much higher than they are today. If you believe that to be true, you owe it to yourself to learn more about how the banking industry really works! Register for the seminar!
The article suggests that the best place to preserve your money for retirement is in a Roth IRA. The author’s argument is that taxes in the future will be much higher than they are today! And, by converting from the traditional IRA to the Roth will allow you to pay taxes based on today’s tax structure, rather than the tax rate 30 years from now. Well, I agree! But my ability to agree ends with the argument of taxes being higher in 2040! If you only have few thousand dollars to invest and you make less than $120,000 as an individual, then maybe the Roth is the place for you. But for those looking to invest significant savings on an annual basis, you are out of luck! The limit on contributions is $6,000 for individuals over 50 and $5,000 for individuals under 50.
It is true that the Roth is an “after tax” investment, but the money is not liquid and is not easily accessed, except for a few reasons such as a deposit for first time home buyers or for education (ask your tax advisor for specific details), until you are 59 ½. Well if it is for Retirement you say, why do I need it before then? I can think of a multitude of reasons. But let me ask this question: If you could borrow the money in your retirement account, pay it back and receive guaranteed growth on your investment, even during the time that the money was being used, would that interest you? The bad news is that the Roth will not allow you to do that, but the good news… it is possible with a very safe, guaranteed preservation of principal and guaranteed tax free growth investment vehicle. And, like the Roth, you can draw tax free supplemental retirement income, but unlike the Roth, you can begin to draw the supplement income at any age vs. 59 ½ with the Roth!
Participating or Dividend paying whole life insurance, set up for maximum accumulation of the cash value is the vehicle I use to build a privatized banking program for my clients. Allow me to introduce you to two brothers, Joe with a privatized bank and Pete, who has a relationship with the local banker in town.
Both brothers are going to purchase a car and intend to borrow $25,000 for the purchase. Both brothers buy the same car for the same dollar amount, the same loan term and the same interest rate. Both brothers will pay $587.00 a month for 48 months and in the end, will have made payments in the amount of $28,176.00. But here is where the similarities end. Pete has a four year old asset, and hopefully, a good payment history so that he can continue a borrowing relationship with his local bank.
Joe on the other hand, has every penny he spent for the car plus the interest he would have otherwise paid to a lender! That money was paid back to his cash value over the four year payment plan. Joe has the depreciated asset as well, but if he sells the car and buys another he could see a net positive gain of upwards of $39,000.00. Which brother made the wiser choice? This is a very basic explanation of how privatized banking works. If Joe buys another car and still another car, do you see how he is growing his retirement?
If you would like to know more about privatized banking, join us for a FREE Seminar on Tuesday evenings. The article suggests that the tax rates in future years will be much higher than they are today. If you believe that to be true, you owe it to yourself to learn more about how the banking industry really works! Register for the seminar!
Thursday, April 14, 2011
Great Example of Privatized Banking!
The following was written by R. Nelson Nash, the person responsible for the Infinite Banking Concept and to this day a great mentor for those using privatized banking. As you read this, ask yourself if you could do what Jeanette did if your funds were in a qualified plan such as an IRA, 401K, 403B, or a 529 college planning account! Give you a hint... answer is a two letter word!
Nelson Nash's article follows:
Jeanettes’s Banking System By R. Nelson Nash
My oldest grand-daughter, Jeanette, finished Nursing School in May of 2003. She got a job right away. She bought her first car, a Toyota Celica, for $21,500 and paid cash for it with a policy loan on a policy her parents bought on her when she was 2 years old. (I bought one on her at the same time that is three times greater premium).
Jeanette set up an amortization table to repay the loan over five years at 10% interest. In making the “car payments” she is even accelerating her own high interest schedule. This means she is going to repay the loan “before she runs out of the amortization schedule.”
If she doesn’t finish the schedule -- then she is “stealing from her banking system.” This means -- sometime in the next five years -- she needs to see a life insurance agent and buy another policy to accommodate that extra money she is paying on her car. The earlier she makes that move, the better, because the earlier you start a policy and the longer it stays in force, the more efficient it gets.
When she completes the schedule, she will have proved to me that she fully understands the essentials of “being your own banker.” She will have “graduated from the Nash School of Finance” Summa cum Laude! At that point I will give to her the policy that I bought on her when she was age 2. My wife will have to join me in the gift and we will have to spread it over more than two years because of the IRS gifting limitations.
(Note: at this point she will have at least three policies.)
When she buys the next car, she simply repeats the process. When she is 40 years old, we can assume that buying a house is a high priority in her financial life. All she has to do to pay cash for it is call her life agent and say, “Get me a policy loan of $350,000 on my policies.” The agent needs to deliver the checks -- along with an amortization table for 30 years at 10% interest. (The more interest she pays her banking system, the better, because she will get back all her cost basis at retirement time, tax-free!).
The agent also needs to tell her, “Jeanette, your next door neighbor bought his house last month -- and he had to pay $12,000 in closing costs. You didn’t have to do that! To play ‘honest banker’ with yourself, you need to pay $12,000 back to your policies now to emulate what everyone else has to do in such transactions.”
This all means that she is going to pay off that “house loan” before she finishes the 30 year schedule. And this means she must buy another policy to accommodate that extra cash flow. And,remember, the earlier she does it, the better the whole system performs.
NOW -- when she gets to be 70 years old, she can stop all premium payments and begin to withdraw dividend income in the neighborhood of $150,000 for the rest of her life. This won’t diminish the death benefit of about $3,000,000 regardless of how much longer she lives.
Copyright - The Infinite Banking Concept©
If this intrigues you, contact me and I will run a free analysis for you. My clients and prospective clients never pay me a fee for my services! Send me your questions!
Nelson Nash's article follows:
Jeanettes’s Banking System By R. Nelson Nash
My oldest grand-daughter, Jeanette, finished Nursing School in May of 2003. She got a job right away. She bought her first car, a Toyota Celica, for $21,500 and paid cash for it with a policy loan on a policy her parents bought on her when she was 2 years old. (I bought one on her at the same time that is three times greater premium).
Jeanette set up an amortization table to repay the loan over five years at 10% interest. In making the “car payments” she is even accelerating her own high interest schedule. This means she is going to repay the loan “before she runs out of the amortization schedule.”
If she doesn’t finish the schedule -- then she is “stealing from her banking system.” This means -- sometime in the next five years -- she needs to see a life insurance agent and buy another policy to accommodate that extra money she is paying on her car. The earlier she makes that move, the better, because the earlier you start a policy and the longer it stays in force, the more efficient it gets.
When she completes the schedule, she will have proved to me that she fully understands the essentials of “being your own banker.” She will have “graduated from the Nash School of Finance” Summa cum Laude! At that point I will give to her the policy that I bought on her when she was age 2. My wife will have to join me in the gift and we will have to spread it over more than two years because of the IRS gifting limitations.
(Note: at this point she will have at least three policies.)
When she buys the next car, she simply repeats the process. When she is 40 years old, we can assume that buying a house is a high priority in her financial life. All she has to do to pay cash for it is call her life agent and say, “Get me a policy loan of $350,000 on my policies.” The agent needs to deliver the checks -- along with an amortization table for 30 years at 10% interest. (The more interest she pays her banking system, the better, because she will get back all her cost basis at retirement time, tax-free!).
The agent also needs to tell her, “Jeanette, your next door neighbor bought his house last month -- and he had to pay $12,000 in closing costs. You didn’t have to do that! To play ‘honest banker’ with yourself, you need to pay $12,000 back to your policies now to emulate what everyone else has to do in such transactions.”
This all means that she is going to pay off that “house loan” before she finishes the 30 year schedule. And this means she must buy another policy to accommodate that extra cash flow. And,remember, the earlier she does it, the better the whole system performs.
NOW -- when she gets to be 70 years old, she can stop all premium payments and begin to withdraw dividend income in the neighborhood of $150,000 for the rest of her life. This won’t diminish the death benefit of about $3,000,000 regardless of how much longer she lives.
Copyright - The Infinite Banking Concept©
If this intrigues you, contact me and I will run a free analysis for you. My clients and prospective clients never pay me a fee for my services! Send me your questions!
Saturday, April 09, 2011
Are Your Investments Liquid? Safe? Free of Government Control?
"I am confident that this country will default on its debt," Bill Gross wrote recently.
Bill Gross, if you do not know, manages the world's biggest bond fund. As the founder and chief investment officer of PIMCO, he's responsible for over $1.2 trillion in assets – mostly in bonds. And last month, in his main bond fund, he got rid of all of his U.S. government bonds.
"[I've] been selling Treasurys because they have little value within the context of a $75 trillion total debt burden," Bill said. "Unless entitlements [namely Social Security, Medicare, and Medicaid] are substantially reformed, I am confident that this country will default on its debt."
How would that happen? "Not in conventional ways," he explained, "but by picking the pockets of savers." He says the government will pick your pocket through "inflation, currency devaluation, and low to negative real interest rates." So, what does that mean for you and me? If bonds are no longer a good place to invest, are there any safe investments?
So what to do with your money, you ask? Well, my first questions to you are where is your money invested currently? Is it accessible/liquid? Are there penalties for you to access it? If you answer yes to any of those questions, you probably are invested in a qualified plan! Qualified plans are under Government control and subject to taxation at the will of the government...
There is really no good reason to invest your hard earned money into the Government Impound! That is my name for the qualified plans set up through Government legislation! You can put your pre tax money in and save a few dollars on what we will call the seed money, only to sit back and wait until you are old enough to access the money without penalty and then pay the tax you deferred years before, not on the seed amount, but on the full amount. And by the way, that tax rate has not been set yet!
So, at the time that you decide to access your funds, and if the scenario that Bill Gross suggests comes to pass, do you think the tax rate will be a modest number? Hardly! And, all the while, you have not had access to your funds without a ten percent penalty for a withdrawal. So, another question... why are you doing that to yourself? Why are you willing to give the government more of your hard earned money?
My recommendation is to get your funds into something that is liquid, has tax deferred growth, tax free withdrawals, no fees, guaranteed growth, creditor and judgment proof and NO Government control! On our Tuesday evening Online presentations, we offer you an alternative to conventional banking/investing. Give us an hour of your time and we will show you a tried and tested system that has been used successfully by many over the years to build wealth and financial independence.
Want to stop wondering if Social Security will still be there when you retire or if there will be enough left in your retirement account (after taxes are deducted) to support you in retirement? Do you want to maintain your lifestyle in retirement? Let us address those issues for you and much more...
Take a hour on Tuesday evening and register for our Online Seminar. You will learn how banking really works and why you want to have your own privatized banking system. Register by clicking on the "Night of Clarity" icon.
Bill Gross, if you do not know, manages the world's biggest bond fund. As the founder and chief investment officer of PIMCO, he's responsible for over $1.2 trillion in assets – mostly in bonds. And last month, in his main bond fund, he got rid of all of his U.S. government bonds.
"[I've] been selling Treasurys because they have little value within the context of a $75 trillion total debt burden," Bill said. "Unless entitlements [namely Social Security, Medicare, and Medicaid] are substantially reformed, I am confident that this country will default on its debt."
How would that happen? "Not in conventional ways," he explained, "but by picking the pockets of savers." He says the government will pick your pocket through "inflation, currency devaluation, and low to negative real interest rates." So, what does that mean for you and me? If bonds are no longer a good place to invest, are there any safe investments?
So what to do with your money, you ask? Well, my first questions to you are where is your money invested currently? Is it accessible/liquid? Are there penalties for you to access it? If you answer yes to any of those questions, you probably are invested in a qualified plan! Qualified plans are under Government control and subject to taxation at the will of the government...
There is really no good reason to invest your hard earned money into the Government Impound! That is my name for the qualified plans set up through Government legislation! You can put your pre tax money in and save a few dollars on what we will call the seed money, only to sit back and wait until you are old enough to access the money without penalty and then pay the tax you deferred years before, not on the seed amount, but on the full amount. And by the way, that tax rate has not been set yet!
So, at the time that you decide to access your funds, and if the scenario that Bill Gross suggests comes to pass, do you think the tax rate will be a modest number? Hardly! And, all the while, you have not had access to your funds without a ten percent penalty for a withdrawal. So, another question... why are you doing that to yourself? Why are you willing to give the government more of your hard earned money?
My recommendation is to get your funds into something that is liquid, has tax deferred growth, tax free withdrawals, no fees, guaranteed growth, creditor and judgment proof and NO Government control! On our Tuesday evening Online presentations, we offer you an alternative to conventional banking/investing. Give us an hour of your time and we will show you a tried and tested system that has been used successfully by many over the years to build wealth and financial independence.
Want to stop wondering if Social Security will still be there when you retire or if there will be enough left in your retirement account (after taxes are deducted) to support you in retirement? Do you want to maintain your lifestyle in retirement? Let us address those issues for you and much more...
Take a hour on Tuesday evening and register for our Online Seminar. You will learn how banking really works and why you want to have your own privatized banking system. Register by clicking on the "Night of Clarity" icon.
Tuesday, April 05, 2011
Deceptive (Persuasive) Marketing Practices...
Have you ever watched a television commercial where there are beautiful people on the beach having fun using product “X” and they tease you into thinking that if you bought the product "X", your life would be more like those on the commercial; that suddenly, your life would be transformed? Then you buy the product, but nothing … absolutely nothing happens.
Well, you are not alone … in being duped by a deceptive advertising ploy.
False or deceptive advertising is the blatant use of false or misleading statements in all forms of advertising — radio, television, print and digital. Advertising is easily capable of going beyond informing the public that your product exists to the ability to persuade consumers into transactions that they might otherwise never consider.
This deception in various contexts is illegal in most countries. However, some companies still encourage their advertising branch to find ways to deceive consumers in ways that are not illegal. So, perhaps we should say those instances are not deceptive but rather, persuasive! Here are some of the most common types:
Patriotism: Suggestion that the product proves the customer loves their country.
Snob Appeal: Suggestion that use of product will ensure the customer’s place as part of an elite or luxurious group.
Bribery: Suggestions that the customer will receive more than they paid for.
Have you ever been drawn in over the years to think that your financial strategies could change for the best by moving your investments to a highly recommended fund that shows great rates of return! In my younger and more naive years, I fell for those suggestions. And, sadly, as I talk to many new clients, I hear that they too, have been deceived... or persuaded!
Speaking of rates of return, keep an eye out for an upcoming post! How deceptive they can be!
Well, you are not alone … in being duped by a deceptive advertising ploy.
False or deceptive advertising is the blatant use of false or misleading statements in all forms of advertising — radio, television, print and digital. Advertising is easily capable of going beyond informing the public that your product exists to the ability to persuade consumers into transactions that they might otherwise never consider.
This deception in various contexts is illegal in most countries. However, some companies still encourage their advertising branch to find ways to deceive consumers in ways that are not illegal. So, perhaps we should say those instances are not deceptive but rather, persuasive! Here are some of the most common types:
Patriotism: Suggestion that the product proves the customer loves their country.
Snob Appeal: Suggestion that use of product will ensure the customer’s place as part of an elite or luxurious group.
Bribery: Suggestions that the customer will receive more than they paid for.
Have you ever been drawn in over the years to think that your financial strategies could change for the best by moving your investments to a highly recommended fund that shows great rates of return! In my younger and more naive years, I fell for those suggestions. And, sadly, as I talk to many new clients, I hear that they too, have been deceived... or persuaded!
Speaking of rates of return, keep an eye out for an upcoming post! How deceptive they can be!
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