Making your money work for you is hard work!

Today I read an article in USA Today, authored by Sandra Block. You can read the whole article here. Basically, the author was outlining a number of ways you could see better returns on your money. In the words of the author, "There's a reason most banks don't promote their CD rates: They're horrible. The average rate for a one-year CD last week was 0.44%, according to Bankrate.com. Most big banks are paying less than 1% on their savings accounts."


She goes on to say that some seniors who depend on the income from their saving accounts buy the long term CD's to get a little higher interest rate, only to cash them in if they need the money and pay the penalty for the surrender prior to the cd's maturity. Now that could be considered cleaver, but what if the penalty is more than the interest they received? The author points out that some banking institutions and perhaps your local credit union charge as much as one year's interest as a penalty for early surrender!

She points out that there are now instuments such as bump up CD's, I Bonds, premier checking accounts and online saving accounts that can help you to get more interest on your savings. That is all well and good. But ask yourself how many people have the time to shop for such financial instuments amidst their busy schedules! I cannot imagine having to do all that work just to get a few dollars more per month and let's face it, neither will most of you!

No, the author has not missed the boat. Rather, she is right on and makes great points of suggestion. She implies (or I have inferred!) that it is no longer just one trip to the local credit union and you are done. The problem is that you have to work hard for those few extra dollars and in the end, is it worth it? Who has that kind of time or the discipline to conduct all those transactions required to get a slightly higher interest rate? That said, the idea of banking is not a bad one. It is a great one. But, the vehicle you choose for your banking is key!

You want your saving plan, especially your retirement saving plan to have features like:

• Guaranteed Growth with No Loss of Principal
• Have Penalty Free and Tax Free Access to the money at any time regardless of your age
• Have no Government Control. It is your money to use as you see fit.
• Have your saving plan be Creditor and Lawsuit proof
• Never have to pay any fees to a financial planner

I believe that many of you have the ability to bank more efficiently but do not have the information you need to get started! There is a free Online seminar that you can watch. It will explain how banks lend and how privatized banking works as well. Learn the secrets of banking that the big banks will not tell you and learn how to take control of and manage your money so that it works for you 24/7. This is not rocket science. Rather, it is learning the practices that have beensucessfully used by many for hundreds of years. View the seminar !

What would Thomas Jefferson think?

Having just completed my colleague Jeff Mendenhall’s book, “Your Economic Destiny”, I was reminded of some of the many profound writings of Thomsa Jefferson. The following quotes appeared in Jeff’s book and no need to restate Jeff’s point for this post, since Jefferson’s words speak very clearly on debt!


“Then I say, the earth belongs to each of these generations during its course, fully and in its own right. The second generation receives it clear of the debts and incumbrances of the first, the third of the second, and so on. For if the first could charge it with a debt, then the earth would belong to the dead and not to the living generation. Then, no generation can contract debts greater than may be paid during the course of its own existence.” –Thomas Jefferson to James Madison, 1789. ME 7:455

“The conclusion then, is, that neither the representatives of a nation, nor the whole nation itself assembled, can validly engage debts beyond what they may pay in their own time.” –Thomas Jefferson to James Madison, 1789. ME 7:457

In his book, Jeff warned of a potential economic storm that is still ahead if our nation does not take immediate measures to reduce the national debt. His points in the book are well taken, but all those years ago, Thomas Jefferson spoke the words above, warning future generations not to incur debt beyond what could be paid in their lifetime. Perhaps our current govenment officials should read and reflect on some of Jefferson’s writings and teachings!

I am enjoying reading about him once again. Suggest you engage some of your free time doing so as well!

Jim Dierking

Home Equity Lowest Since World War 2

In past years, even as a child, I remember hearing adults speak about the growing equity in their homes and that someday, they would take the one time exemption (the tax laws at the time), sell the big house and downsize to something smaller, thus using the cash as a supplement for retirement. I grew up with that forced sense of saving in mind and with a somewhat similar plan in the back of my mind.


Banking on the equity that came from faithful payments of one's mortgage loan, a goal that most of my parent's generation sought. Things have changed! Most today, even before the real estate market meltdown, did not think that way. Many of my clients would say, they just convince themsleves that they would always have a mortgage payment. I always worked to try and help them see things from the prospective of debt free living, not always successful, I might add! Some of that probably is a result of the instant gratification society that we live in today, but I am digressing and want to get back to my point.

For those who may still have had the thought that the equity in their home would supplement their retirement someday (even if they have been faithful in making their payments and have not taken cash out refinances or equity loans), the market meltdown has erased the hope of that! To no fault of the individual homeowner, an article in the USA Today indicates that home equity has sunk to nearly the lowest point since World War 2. If you are in my generation and you are thinking about retirement in the next several years, the housing market wows are probably on your mind regularly...

There are alternatives and it is not too late for you to recover from this and all saving meltdowns. The stock and bond markets have not been in your favor either. But the reality is that for most, the markets other than the real estate market, have not been in your favor. In another article I read recently the author suggested that most individual investors get in the market at or near the top and sell at or near the bottom, not the way it is supposed to work!

Ironically, people who understand the power of banking will have done better saving the monty they invested in the market at their local bank or credit union! But there is more to understanding banking than to simply deposit your money. R. Nelso Nash, the founder and engineer of the Infinite Banking Concept says that everyone should be in two businesses; the one you make your living with and banking! Privatized Banking not only gives you the ability to capitalize on compound interest, but it gives you the ability to reverse the trends of our money flow, allowing you to keep more of your hard earned money. And, it works no matter what the economy does!

Take some time to educate yourself about the power of privatized banking and do it now! Click here to view our Online Seminar on How Privatized Banking Really Works. Or enter your question on the contact form and I will respond to you promptly. There is still time to build your nestegg.

Finally, young people working and contributing to 401K's, 403B's, etc. watch the seminar . And if you are facing mandatory distribution from your qualified accounts, use the contact form. Let us help you avoid double taxation of your hard earned money!

Jim Dierking

Still Banking on the Market for Retirement Saving Accounts?

The weekly jobless numbers indicated an increase in unemployment, up from 9.0% to 9.1%. The market bulls are suggesting that the slowing economy is temporary. Their view is that weather, higher than normal gas prices and climbing food prices are pulling down the economy. (If gas prices and food are having such a negative impact on our economy, why then is food and energy always “X’ed” out of the equation when the government reports benchmark numbers like CPI and PPI???).
The question of whether the Fed will entertain a QE 3 was bantered about on the morning financial networks, while the author of a morning mortgage market alert suggests the more appropriate question should be whether a QE 3 will do any good. His suggestion is that consumers continue to lose faith in their political leaders (are they really? !!!) and the housing market continues to lose value. Until the housing market begins to stabilize and consumer’s confidence begins to increase again, businesses will not increase their hiring, unemployment thus, will remain high and the economy will probably have minimal if any, growth.
And the good news is that it is Friday! Sorry, not much more that can be said about good news when it comes to the markets and the economy. Listen long enough to the financial news and you will hear the trader that thinks we are still in a depression, not a recession or the one that says get back into the markets on the market pause or you will miss the next upswing!
I had the pleasure to be in the audience when author and motivational speaker Mark Victor Hansen made a presentation to a rather large group of people. Mark suggested that the television is full of bad news and it can really be a drag on people’s ability to be productive. He suggested that we turn off the television and only watch the absolute minimum when it comes to the news. He handed out a rather thick rubber band to everyone and suggested we put it on our wrist. Each time we get off track or begin to think negatively, we should pull back on the rubber band and let it go to snap out of it and get back to being productive! So, I do turn the financial news off during the day and only check the markets at strategic times, since what happens on wall street does effect part of my business. Suggest you do the same, but not until you get a good look at what is happening.

How long can one endure the intestinal fortitude it takes to watch these markets day in and day out? How much more will your investments decline before the economy stabilizes? Are you ready for change? Putting your money in a CD, Qualified Plan or the safe bet, in the credit union or local bank is an alternative, but not the answer. Privatized Banking offers you piece of mind with contractually guaranteed growth, no loss of principal and tremendous benefits regarding taxation, to name just a few. Illustrations are free and will demonstrate how your money will grow… and watch this 2 minute video…