Personal Financial Management
Short Term – Money, Long Term – Investments, And Never The Twain Shall Meet…
July 12, 2008 | Author Dr Agon Fly
“There’s no crying in Baseball!” A League of Their Own, 1992
The baseball season is long and strenuous. Players, coaches and teams have to pace themselves. They recognize that one game in a long season – win or lose – is less important than consistently winning more than they lose. More importantly, a team has to win more than the other teams in their division if they want to get to the playoffs, compete for the league championship and make it to the World Series. We’ll get back to that in a paragraph or two.
The baseball season is like your financial season from the time you wake up to the reality that your financial future is in your own hands, till the time you pass on to the next world and pay forward the wisdom and wealth you accumulated during your earthly existence. So, like baseball, you don’t expect to win every time you make a decision about money and investing. What you aim for is consistently winning more than you lose – right?
Wrong. In many baseball seasons a team that lost its opening game and chanted the mantra, “It’s a long season; you can’t win ‘em all,” ended the season one half game out of first place, missed the playoffs, the league championship and the World Series. Every game counts and every financial decision counts.
Moreover, when a team prospers through the season and gets into the division playoffs, they are subject to defeat in the short term. And so it goes through division play and into the Series; victory or defeat is just the swing of the bat away. There are thirty teams in Major League Baseball but only one winner in the end.
So, also, when you get to the point where you want to live off your money and investments instead of your labor, you can have a great season right up to the end and lose in the short term. So, conclude for yourself that the short term is both more important and more manageable than the long term. Having money that you control in the short term is more important than having “long-term” investments that you don’t control, and that someone else – perhaps with motives that don’t serve you - does.
Every baseball team knows that winning or losing a single game could well leave them in front of their TV instead of in the dugout during the playoffs. Americans need to recognize that managing their money so that they don’t lose it is more important than hoping that some investment over which they have no control will miraculously get them into the playoffs and make them winners in the World Series of wealth building.
America has been duped into believing that is OK to lose money, that waiting out ‘the market’ is a strategy that serves them; that the future is assured if only they ‘stay the course.’
BUNK!
Americans need to wrest control of their money from the Behemoths that have seduced them into believing that bigger is smarter or better than they are, and that the Behemoths should be the custodians of Americans’ money instead of the individual Americans themselves.
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Posted in Legal, Ethical, Moral, Money, Movie Quotes, Personal Financial Management, Retirement | 
Tags: financial decision, future, investing, investments, Money, wealth, wisdom | 
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Geopolitics And Your Pocketbook – Why You Need Cash Money NOW
July 6, 2008 | Author Dr Agon Fly
“Go ahead, make my day.” Sudden Impact, 1983
It’s the 4th of July weekend and I’m getting pretty darn mad at the 535 Cowards in Congress. We Americans are willing to follow leaders who look out for us and the country but are tired to the bone of the Dolts in DC who spend most of their time and much of our money trying to damage the opposition and get themselves re-elected.
Gas prices are going through the roof. Food from afar – and every other item that arrives in a truck, plane, train, or automobile – is going up because gas prices are going up. Iran is threatening to squeeze the supply routes and put severe economic pressure on the world. Saudi Arabia refuses to increase production. Hugo Chavez is a fruitcake in a bowling shirt and wants nothing more than to prove that socialism is somehow better than democracy, state run everything is better than liberty and watching America suffer is better than TV.
The world – not just America – runs on oil. America currently consumes more oil per-capita – than any other country, but that is rapidly changing. China and India are increasingly demanding more oil and putting serious pressure on the supply and demand equation. Europe wants to become the dominant economic power in the world and needs an ever-increasing supply of oil to do that. Developing countries want and need more oil to build their economies.
So, here are the oil producing countries staring down America and Americans – and the rest of the world too – and threatening us with subtle and not so subtle “Make my day” threats while Congress debates and discusses what the rest of the world has proven;
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nuclear energy works safely,
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deep water drilling is economical and safe (Katrina proved that),
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shale oil is extractable economically and ecologically,
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ANWAR can be explored and could produce enough oil to take care of America for the decades it needs to develop alternatives that are less invasive – and fund the salvation of the polar bears in the process if that’s truly needed
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and, finally, if we have leaders with the will, America will rise to the occasion and become the world’s leader in those alternative forms of energy
What does all that mean for us? American’s are going to suffer economic hardship in the short term because of the inaction and ineffectiveness of the Cowards in Congress. This problem’s been with us since the 1970′s and the Dolts in DC could have solved it ten times over if they had the courage to do so.
There’s darn little that individuals can do about it in their personal economies other than adopt a conservative financial strategy that cuts back on
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consumer goods spending for cars, furniture, and luxuries
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and puts
- saving money
- buying a house
- paying off the mortgage
at the top of the list, while other costly practices like
· investing in maybe-it’ll-grow mutual funds,
· the latest “Whatever 101″ miracle money making scheme,
· can’t-lose annuities that tie up your money for years, if not decades,
move to the dustbin.
Remember, when times get rough you need ready cash money and not the maybe-money from investments that guarantee only that they guarantee nothing.
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by Jeffrey Reeves, MA – www.youBEthebank.com
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Posted in Legal, Ethical, Moral, Money, Movie Quotes | Tags: economics, economy, ethics, Money, saving, savings | No Comments »
Oxymoron: Wall Street Wisdom About Your Money…
June 27, 2008 | Author dragonfly
Wisdom???
Forbes.com
Liz Moyer, 06.26.08, 3:00 PM ET
Wall Street’s Widening Credibility Gap
The carnage spread across the financial sector. Fortis was down 19%, Lehman down 6%, National City (nyse: NCC – news - people ) down 7%, MBIA (nyse: MBI – news - people ) down 11% and Washington Mutual (nyse: WM – news - people ) down 6%. The Keefe Bruyette & Woods (nyse: KBW – news - people ) index of bank stocks, the BKX, was off 3%. Financials dragged the S&P 500 17% below the record it set back in November. [Emphasis added]
The wizards of Wall Street can’t figure out how to take care of their own money much less yours. It’s time for every American to take back the control of their money, and there’s a simple, age old, tried, and tested formula you can apply that allows you to do that - http://themoneyforlifeblog.com/?page_id=69
The Debt Paradigm Isn’t Working…
I know this may seem blatently self serving and it is to an extent. On the other hand, the paradigm that controls America’s thinking about money management, saving and investing just isn’t working and needs to be changed. Money Now, Money Later, Money for Life…How to thrive in good times and bad offers a simple, sustainable, common sense set of strategies and practices that allow Americans to wrest control of their money from the Behemoths that demonstrate only greed and lusting for your money and neither wisdom nor compassion for you.
Peace of Mind Is the Payoff…
American’s who have read Money for Life, and who are applying the principles it teaches to their personal money management practice, are experiencing peace of mind about money that seemed out of their reach only a short time ago. You owe it to yourself to learn the Money for Life secrets that have been practiced since Biblical times and which were abandoned in the late 20th century.
Avisors with decades of experience who read Money for Life write comments like this:
“I Read your book it was great!! I am a financial advisor and have been doing a lot of research about banking concepts. I like the way you introduced the concepts and I am going to institute them into my practice. It is a shame the home office doesn’t teach these concepts to their agents. The more I read and test the more I like the concepts and the less I like what I’ve been taught by those that aren’t as wise. I would very much enjoy the opportunity to find out more about what else I could be doing for my clients. Thank you for sharing your knowledge.”
Thanks for your patience and understanding. America needs to know what’s in this book, not because I wrote it – I’m simply the voice of the many who preceded me – but because the ideas, principles, and practices it presents are essential to their success with money.
Jeffrey Reeves
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Mutual Fund Misrepresentation…
June 25, 2008 | Author dragonfly
“Frankly, my dear, I don’t give a damn.” Gone With the Wind, 1939
It appears that the mutual fund industry is very much like the Congress. Proof again that Americans are being bamboozled by Behemoths whose only interest is in moving money from your pockets into their own accounts. This isn’t a personal opinion but the opinion of a mutual fund industry watchdog as Gary Halbert reports in his newsletter this week! Here are a few excerpts and a link to the full text.
A Shocking New Morningstar Study!
June 24, 2008
“…Morningstar released a study last week showing that many mutual fund managers have little or none of their own money in the very funds they manage …
“Yet the new Morningstar study shows that about half of the mutual fund managers they track have NONE of their own money in the funds they manage. ZERO.
“Morningstar found that 47% of US stock funds and 61% of foreign stock funds have no investment of the managers own money. Bond funds fare even worse with 66% of taxable bond funds, 71% of balanced funds and 80% of municipal bond funds having no manager investment…
Perhaps the most interesting part of the study was Morningstar’s analysis of its own Picks and Pans. This is a service provided by Morningstar where they select funds that may be good long-term investments (the Picks) as well as mutual funds to avoid (the Pans). When analyzing management investment in these two groups, Morningstar found that the Picks had a median manager investment of $430,000, whereas the median investment by the fund managers in the Pan category was $0…Get the message?”
Here’s the link to the whole article; http://investorsinsight.com/blogs/forecasts_trends/archive/2008/06/24/a-shocking-new-morningstar-study.aspx
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There are better ways to handle your money that the Behemoths won’t, don’t, or can’t talk about. www.TheMoneyForLifeBook.com
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American Money, American Oil, American Innovation…Revisited
June 21, 2008 | Author dragonfly
This post from May 9 is becoming more relevant every day…
Friday, May 9th, 2008
“Frankly, my dear, I don’t give a damn.” Gone With the Wind, 1939
The Congress doesn’t “give a damn.” It has completely abrogated its sworn responsibility to provide vision, wisdom and leadership. Some in Congress have given their votes and their minds over to the insane claims of fringe groups who really hate America. Others have relinquished their power to the Behemoths; corporations, unions, lobbyists and 527′s that disguise themselves as spokespersons for some group or cause, and government agencies whose only function is self preservation regardless of the cost to the Country and its People – that’s you and me and 300 million other Americans.
America is committing suicide by Congressional Cowardice!
All in Congress have put political party goals above the needs of America.
The presidential candidates are members of Congress, too. Each of them has “caved” to one or more of the caveats of their constituents during the campaign. All of them have failed the “vision, wisdom and leadership” test when it comes to recognizing and dealing with the realities of the 21st century.
Obama naively clings to an exclusive far left agenda while promising to be a uniter. McCain offers only partial insights into his thinking and programs as he tries to convert his image from that of an independent minded conservative to that of a ”sorta” party loyalist.
There are two intimately related issues that should drown out the cacophony of claims by the crazies and the wimps and overshadow every other concern:
- America is at war. Insane Islamic zealots believe that only they possess the truth, and that destroying the western world in the name of Allah is the path to their heaven. It’s war declared on America - not criminal activity.
- America’s – and the world’s – economy is based on oil. If America doesn’t tap into its own oil reserves – as every other country in the world is doing – America will soon become a slave to the OPEC nations like Saudi Arabia and Venezuela – the birthplaces of the Islamic and other crazies. At the same time, America needs to have the vision to commit significant resources to oil alternatives.
If our leaders deal with these two issues, every other concern will resolve itself.
Some will argue that the current economic malaise is driven by failures in both the oil and the financial industry. The financial industry, however, is becoming more and more dependent on oil rich countries to supply it with the fuel for its engine, and that means dependence on oil by proxy.
Your personal economy depends on America being a leading economic power. If America fails to maintain its status as the engine of liberty through its economic strength, you and I will become servants to some foreign power.
We need to elect leaders who recognize and deal with these harsh realities instead of those in Congress today who pander to every Behemoth that promises a contribution to their campaigns to stay in office – translate that as “to stay in power.”
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In the meantime, find ways to save money that allow you to control the money in your life. At the micro level you can switch to energy efficient light bulbs, drive more slowly and less often, buy more fresh food and less prepared food; that will help you and the rest of us too.
At the macro level you need to gain control of your money, to apply principles and practices that have been tested and proven over centuries and millennia and that apply equally today.
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Equity Harvesting Is A Gamble Based On A Gamble…
June 20, 2008 | Author dragonfly
Easy Money Schemes and Dreams
“You got to know when to hold em, know when to fold em,
Know when to walk away and know when to run.”
The Gambler, Kenny Rogers
The Original Gamble
Equity harvesting is the practice of acquiring the highest possible mortgage on your personal home so you can “invest” the money derived from the equity that is extracted in another asset.
Don’t do it.
You Have to Lose to Win
It’s true that there is NO return on equity. That’s what the promoters of this scheme use as intellectual leverage. If you were counting on appreciation in 2010 and had to sell a property that was appraised for $500,000 in 2008 - thinking you would see an increase - you were probably surprised to learn that the property is now worth $400,000 - or less. If you had already “harvested” the equity in the property you may feel that you won by losing.
If you had a $300,000 mortgage in 2006 and had “harvested” the $200,000 in “non-working equity” to buy some other asset, you would now be facing a serious shortfall. Worse yet, if the asset you bought relied on a stock index for its growth potential, you may be looking at less than inflation or near zero growth in that asset also.
Does that make you a winner? Maybe if your consider bankruptcy a win.
Tax benefits?
Maybe, but not assured. The IRS doesn’t allow you to deduct the interest on equity lines over $100,000 and some investments disqualify deductions.
Now, we can make the situation worse. Most equity lines have variable rates and the lender has a great deal of leverage in raising and lowering the rate. You could have a loan rate that far exceeds the growth rate of the “investment;” a gamble based on a gamble and neither one paid off.
Retirement Income
Equity harvesting is presented as a safe way to increase retirement income. It isn’t all that safe and the increase is based on aggressive assumptions that are not always realistic.
Reality has to sink into the American consciousness sooner or later. The safe and easy path to prosperity and a secure retirement income lies in paying off the mortgage, getting out of the 401(k)/IRA schemes, putting money into savings and whole life insurance policies, and investing only when a solid financial foundation is in place.
by Jeffrey Reeves MA, EUREKONOMIST
Posted in Movie Quotes, Retirement | Tags: 401(k) plans, become your own bank, becoming your own banker, debt elimination, debt management, debt reduction, debt to others, financial, financial advice, financial advisor, financial planner, financial planning, housing market, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, life insurance, mortgage, mortgage management, Retirement, retirement income, retirement planning, saving, term life insurance, Whole Life Insurance, why buy whole life insurance, why whole life insurance | No Comments »
Reverse Mortgage Money Magic…
June 19, 2008 | Author dragonfly
Retirement Assets…
“Made it Ma! Top of the world! White Heat, 1949
Reverse mortgages are often portrayed as last-resort financial tools; reserved for widows and widowers who have outlived their liquid assets and have to tap the equity in their paid-for homes to survive a few more years.
Not so.
Meet Bob and Sally…
- They live in a $1.2 million home in a stable neighborhood in Denver. The house is paid for.
- They have three children.
- All three of the children are married.
- Each of the children is in a professional practice in a different city; Dalla, L.A. and Chicago.
- Each child has a six figure income.
- Each child has a family and has roots in their new communities.
- Bob and Sally also have a significant estate and estate tax staring them in the face.
The family is close and the children return to Denver for visits on major holidays and during the ski season. None of the children is interested, however, in owning the family home or moving back to the city they grew up in.
Creative Planning and Execution…
Enter the jumbo reverse mortgage. Bob and Sally obtained a reverse mortgage of about $500,000 on their home. They used about $400,000 to buy a condo in Vail, the family’s favorite ski location. They put the property in a trust and began a gifting program that shifts their ownership to the trust and the children over several years. The additional money was used to buy a large life insurance policy on Bob that will be paid to the trust when Bob dies and fund home owner association fees, upkeep, etc. for the condo for decades to come.
The benefits:
- Bob and Sally’s estate, and therefore their estate tax, is reduced because they transformed an illiquid asset into cash and transferred the cash to the condo and the condo to the trust.
- The children will still have an expense free place to get together during ski season and for other family events like graduations and marriages.
- In a few years, when Bob and Sally decide to move from the big house to a smaller place, they intend to sell the Denver house and use the equity retained after the reverse mortgage to buy a condo of their own in Vail. When they do, they will get another reverse mortgage on the condo and use that money to further fund the family condo or, perhaps, buy a bigger one.
Find Out More…
Reverse mortgages are one of the most powerful tools available to seniors today. For additional information go to http://www.nrmla.org/
Jeffrey Reeves
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Teaching Children About Money…
June 17, 2008 | Author dragonfly
“Prepare not a path for your children. Prepare your children for a path.”
Dr Agon Fly
The Bike…
Here’s an example of how one man prepared his child for a path and passed on a Legacy.
Mr. and Mrs. Smith started a “bank” for their only son when he was born. They used whole life insurance and funded it in anticipation of the boy’s future needs.
When Junior was 11 years old, he came to Dad very excited about a bike he had seen advertised. (I remember that feeling. For me it was a Schwinn with a chrome headlight prominently displayed in a store window.)
“Dad” he said, “there’s this really cool bike at the ABC Bike Store, and Dad, if I had this bike, it’d be the coolest bike on the street and I really want it Dad.”
“How much does this bike cost, Junior?” Dad asked.
“Welllllll…ummmm…I think it’s kinda ‘spensive, Dad” Junior replied and he handed Dad the newspaper ad.
“Nine hundred dollars is a lot of money for a bike, Junior,” said Dad with a bit of surprise in his voice.
The First Lesson…
Then, after a long pause, Dad said, “I think it’s time for you to learn about money, Junior. When you were born, your Mom and I started a very special savings account for you. We still own the account, but the money in this account is there to help you learn about money. Let’s call this account your personal “bank.” It’s time for your first lesson.”
Dad explained to Junior that he could borrow the money for the bike from his “bank,” and that Junior would have to repay the money borrowed. Then he taught Junior the basics of interest and payments in the life insurance policy.
When Junior objected that he didn’t have any way to make the payments, Dad reminded him that he received an allowance to buy his lunches, to buy birthday gifts, go to the movies and so on. He could decide to use that money differently if he really wanted the bike more than those other things. Dad also offered to pay Junior extra money if he agreed to do some chores on a regular schedule. Junior would have enough income to pay back his “bank” at the rate of $33.00 per month – including interest – in just less than three years and still have some money left over for other things.
The bargain was struck, and Junior got the coolest bike on the street. When the other kids saw the bike they were amazed and wanted one just like it.
“How much did your Dad pay for it?” they wanted to know.
“Dad didn’t buy it for me” Junior replied, “I borrowed the money from my own ‘bank’ and bought it myself for over nine hundred dollars.”
The Real Value of the “Bank”…
Imagine how Junior felt. His bike made him feel proud. His “bank” enhanced his self-esteem. You know which of those is truly important. The bike will rust. Self-esteem turns into gold: not just financial gold but moral, ethical and relationship gold as well. Junior went on to finance his first car at 16 and repay himself. He then used the “bank” to fund a large part of his college costs and repay himself. He’ll soon be buying a new car…and financing it himself…while the money in his “bank” is growing tax-free. In addition, Junior always recovered both the principal and interest in his “bank” that he – or his dad – would otherwise have paid to a commercial lender.
Think about how much tax-free money Junior will control in another 50 years and the kind of financial kick-start his children and grandchildren will have because he learned about Money for Life when he bought the bike at age 11.
“What is important for kids to learn is that no matter how much money they have, earn, win, or inherit, they need to know how to spend it, how to save it, and how to give it to others in need.” Barbara Coloroso
That is legacy.
Jeffrey Reeves
Posted in Debt, Money, Personal Financial Management, You BE the "Bank" | Tags: 401(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Tags: 801(k) plans, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | 1 Comment »
A Legacy Trust Of Money, Wisdom, and Wealth…
June 9, 2008 | Author dragonfly
“There are only two lasting bequests we can hope to give our children. One of these is roots, the other, wings.” -Hodding Carter
Don and Dawn want to give their children and grandkids both roots and wings. Strong Judeo/Christian values run through their veins and promise their progeny and heirs both roots and wings. There was something missing, however. Don and Dawn knew what they wanted, but were unsure of the “how to” part of the equation. That’s where EUREKONOMICS help.
The Money for Life Guide that Don and Dawn are working with introduced the idea of a Money for Life Legacy to them. It works like this. Don and Dawn purchase whole life insurance contracts on themselves and on each of their children and each of their grandkids as well. The insurance policies will eventually be owned by a special kind of trust called a “dynasty trust.” Don’s brother and sister-in-law are also joining the trust so there will be about 15 insurance policies purchased to fund the trust.
The role of the trust is to act as a family “bank.” As the insurance policies develop cash values – in this case over $120,000.00 during the first five years – the trust beneficiaries will be able to borrow those cash values for education, automobiles, housing, special needs and so on.
Later, when one of the founding family members dies or if – God forbid – one of the children or grandchildren passes on, the death benefit proceeds will be used to pay up existing policies or purchase new policies on family members. This increases the money available for loans to the remaining family members.
In the case of Don’s and Dawn’s family, the trust will hold about $400,000 dollars cash and represent over 1.5 million dollars in death benefits in twenty years if everyone is still alive. In forty years, when you would expect the founders to be deceased and the children to be retired while the grandchildren are producing more progeny, the trust would hold millions of dollars in cash values and guarantee the beneficiaries that they would never have to borrow from a commercial bank.
Don and Dawn’s children, grandchildren and great grandchildren as well as future generations could rely on the family “bank” for mortgages, business loans, education loans, and any other loan that the trust allows.
The EUREKONOMICS Model is an extraordinary way to get control of the money that flows through your life. It is just as powerful as a way to pay forward a legacy of wisdom and wealth to those you care about.
Learn more, own more, owe less – all great destinations. Here’s a map that will get you there with certainty –
Jeffrey Reeves
Posted in Money, Personal Financial Management, You BE the "Bank" | Tags: 401(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Tags: 801(k) plans, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
I Have A Dream About Money, And An Investment Nightmare…
June 7, 2008 | Author dragonfly
People’s Dreams…
“As God is my witness, I’ll never be hungry again.” Scarlet O’Hara in Gone With the Wind, 1938
My Personal Observations…
Over the past 40 years I have been an insurance and financial advisor to small businesses, medical, legal, accounting, real estate and other professionals as well as executives, school teachers and brick layers – people from every profession and occupation it seems.
Perspective is What Really Matters…
Occupation, social status, race, religion or economic condition has made little difference in the successes of these clients. One characteristic or difference stands out:
- The Successful deal with their money and savings first and investments only after they control the money that flows through their lives
- The Failures pay attention to the “rate of return” on their investments and treat cash money and savings like an annoying second cousin or the stuff you get from the ATM with your debit or credit card
Investors and Scarlet Miss the Point…
Scarlet O’Hara’s dream became a nightmare because she paid attention to the wrong aspect of life. The dreams of financial failures become nightmares because they are looking at the wrong aspect of financial success. Investing is a way to accelerate the wealth building process; it is not the process and is not even essential to wealth building.
What is Wealth?
Wealth building begins and ends with accumulating money. Once you have some money, you can consider investing a small portion of it to accelerate your personal wealth creation. But, if you never invested a penny, if all you did was save money in conservative accounts, you would end up with a solid financial foundation; you’d be free from debt, have a secure lifetime income, have enough money to deal with life’s surprises and be able to pay wisdom and wealth forward to those you care most about.
There Are No Secrets…
The strategies and tactics that allow the Successful to wear the mantle of peace of mind about money are not new or revolutionary.
- In fact, the economic principles and financial management practices that lead to true wealth have been around for millennia and have been employed by astute Americans since before the founding of our country.
- In fact, again, the application of these economic principles and financial management practices contributed greatly to the founding itself. Were it not for the money saved by the founders, you might still be pledging allegiance to the Queen of England or the President of France.
There’s a serious–but easy to read–discussion about the failed Scarlet O’Haralike financial thinking that has led America and Americans to the brink of bankruptcy in Money, Now, Money Later, Money for Life. You’ll also find financial strategies and tactics there that have been tested and proven in America by Americans for over two hundred years. Strategies and tactics that you can start using the day you learn them.
Jeffrey Reeves
Posted in Money, Movie Quotes, Personal Financial Management | Tags: 401(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Tags: 801(k) plans, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
How To Buy A Car And Make Money Doing It…
June 4, 2008 | Author dragonfly
“I’m king of the world!” Titanic, 1997
Americans have had a love affair with automobiles for over a century. We buy them with abandon; new, used, wrecked and restored. A car inflates our ego, provides useful transport and crystallizes our status. For many reasons it makes us feel like we are royalty; in charge of our world.
Unfortunately the opposite is true. Spending thousands of dollars on a product that is worth less than we paid for it as soon as we take possession deflates our bank accounts and our balance sheets at the same time.
There is a way, however, to profit from your car purchases. Here’s a thumbnail sketch of how it works.
My wife and I just bought our first car since 1993. We borrowed the $24,000 from two of our “banks” - we use participating whole life insurance policies for our banking – to buy the car and will pay ourselves back the same as if we had borrowed from Guido the Loan Shark or the local bank (both having about the same level of interest in our well being.)
If we had borrowed from the bank our payments would have been about $565 for 48 months and the total we repaid would have been just over $27,000. Once the car was paid for we would be free from debt and would own a virtually valueless vehicle.
Instead, we are going to repay our “banks” $600 each month for 48 months – a rate of return of about 9.25%. (Why not higher, since all of the money returns to us?). When those 48 months have passed we will have $28,800 in our “banks” and still have the virtually valueless vehicle. In other words, we will have captured, in our accounts, all of the money that otherwise would have gone to the bank as principal and interest.
Not only that, but our “banks” would have been earning interest on the money that we repaid so the actual internal rate of return would be even higher - approaching 13%. In addition, the earnings would be tax free and virtually guaranteed. Find that in the “markets!”
Granted, there’s a start up period where you have to accumulate money in your “banks”. That is not as hard as it may seem and you can start at any level you choose. Some have started with a few dollars a month and others with ten thousand dollars a month once they discovered how this process works to serve their interests and not those of banks and the other Behemoths.
Learn how The Money for Life Model lets YouBeTheBank and control the money that flows through your life. — www.TheMoneyForLifeBook.com
__________________________
Posted in Money, Movie Quotes, Personal Financial Management, Whole Life Insurance, You BE the "Bank" | Tags: 401(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Tags: 801(k) plans, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
“Soulutions” To Financial Problems Or Difficulties…
June 1, 2008 | Author jr
The EUREKONOMICS™ “Soulution“…
The Oxford dictionary defines the word solution this way: “the act or a means of solving a problem or difficulty.”
The EUREKONOMICS™ Model for dealing with financial issues modifies both the spelling and the meaning of this word:“Soulutions” adds, ”with awareness of the personal aspects of both the problem or difficulty and the act or means employed in solving the problem or difficulty.”
The Operating Manual for EUREKONOMICS™…
Money Now, Money Later, Money for Life…How to thrive in good times and bad deals with practical, workable, easy to understand solutions to money and financial problems. In addition, one of the main goals of this blog and of the book Money Now, Money Later, Money for Life…How to thrive in good times and bad is to guide you to a greater awareness of the non-material and personal issues relating to money, finances and your personal economy. One of the soulutions that can make you more aware is reflected in this quote:
“The cave you fear to enter holds the treasure you seek.” Joseph Campbell
Conventional wisdom – which is no wisdom at all – guides us on paths that are contrived by Behemoths – large corporations, unions and government. When you follow this path, you are heading toward a destination that makes Behemoths wealthy but weakens your personal economy; a path that makes bad decisions feel good.
It’s scary to follow a path other than the one that you, your peers, co-workers, family and friends recognize from TV, radio, print, employer sponsored programs and so on. It’s uncomfortable to embrace your fear of being different and following your own path. But, that is the cave you must enter because that is where you will discover your treasure.
Shams of Tabriz, mentor and companion of the Sufi mystic Rumi, expressed the same idea another way: “If you’re not building rooms where wisdom can be openly spoken, you’re building a prison.”
If you don’t allow yourself to explore alternatives to conventional wisdom you are simply creating your own financial prison and your architects are the Behemoths whose only goal is to transfer your money from your pockets into their accounts.
There is a better way.
You can cut a clearer path for your self than any Behemoth can contrive.
Money Now, Money Later, Money for Life…How to thrive in good times and bad does not define a path and ask you to follow.
Money Now, Money Later, Money for Life…How to thrive in good times and bad provides the insight, wisdom, tools, and guidance that lets you to create your own path; lets you control the money that flows through your life; lets YouBeTheBank.
The few dollars you spend to buy Money Now, Money Later, Money for Life…How to thrive in good times and bad is less than the cost of pizza and beer or a night at the movies. A night out at the pizza parlor or the multi-plex promises neither a solution nor a soulution to money problems or a malfunctioning personal economy.
This book promises both.
Jeffrey Reeves MA, EUREKONOMIST™
Posted in Money, Personal Financial Management, What Others Say, You BE the "Bank" | Tags: 401(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Tags: 801(k) plans, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Skinny Models And Skinny Money…
May 30, 2008 | Author Dr Agon Fly
“Mrs. Robinson, you’re trying to seduce me. Aren’t you?” The Graduate, 1967
Major consumer product retailers (one in particular), make-up and perfume makers, and every other advertiser to one extent or another, employs skinny models to sell their products. I was watching one of those ads on TV yesterday evening and it dawned on me that most advertising for financial services and products employ skinny money to seduce you into buying what they have to sell.
I’ve made the point before that whenever you buy something that’s called an investment – stocks, bonds, mutual funds, real estate, annuities, gold, Euros – the company that sells it to you keeps some of your money to cover their costs and pay their sales force. Nothing wrong with that unless you allow yourself to be seduced into thinking that what you buy can make you rich.
Wealth is the result of saved money. Investements are skinny money; they offer no guarantees, can disappear in a flash (Enron, MCI, 1929, 2001,etc.), are not under your control and, if investments are all you have when it’s money you need, your losses could easily lead to starvation.
America has been led – or misled – to believe that investing from income is wise and proper. American”s are encouraged by mindless pundits that call themselves financial gurus to invest lots of money into their 401(k)s. IRAs or equivalents. These unwise advisors don’t tell them that the money they are stashing is nothing more than a loan from the IRS that will be collected when they retire.
Several popular – not necessarily bright – TV and radio talking heads tell Americans to be sure to have an emergency fund of 3 to 6 months expenses. They don’t tell them that many – if not most – who experience one of life’s surprisingly unsurprising surprises like job loss, disability, medical emergencies, family crises and so on, need enough ready cash to support themselves for 3 to 5 years.
Skinny money like skinny models may be seductive to some, but for me and my clients it’s foolish and downright scary to face the future with debt, unsesured income, limited liquidity and no assured legacy. It’s a heck of a lot better to face the future with the confidence that comes with control of the money in your life than to look back with regret because you relied on information from TV pundits and the advertising of the Behemoths to build your personal economy.
Remember, like Mrs. Robinson, they are trying to seduce you. Avoid the seduction and the pain that it leads to and build a solid foundation and framework for your personal economy BEFORE embarking on an investment program. Discover how –> www.TheMoneyForLifeBook.com
____________________________
Posted in Legal, Ethical, Moral, Money, Personal Financial Management, The Four Pillars | Tags: agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Tags: 401(k) plans, Tags: 801(k) plans, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Family Money For Life…
May 25, 2008 | Author dragonfly
This week my wife and I have been visiting her out of town children and grandchildren. With her permission I’ve been blessed to have been adopted by these wonderful people and her other kids and grandkids who live just a block or two away from us in Denver.
I want to leave the grandchildren a legacy of wisdom and wealth. Since I am not sure I have any wisdom to pay forward, I plan at least to leave them with some money and an intelligent way to handle money – some may call that a form of wisdom.
I’ve set up a perpetual life insurance fund for each of them individually and all of them collectively. It isn’t simple but it’s easy. It works in a way that insures that the grandkids will have money for college, cars, and houses for themselves and for their children and their grandchildren and, if they maintain the trust that funds the legacy, for many generations to come.
This is just one of dozens – perhaps hundreds – of strategies that can only be structured with participating cash value life insurance. We also use life insurance to fund our vacations and our car purchases in a way that allows us to borrow from our life insurance cash value, repay ourselves and return all of the principal and interest to our policies that we would otherwise have paid to some banker.
We call this the Money for Life Model…
Learn more; buy the book –> www.TheMoneyForLifeBook.com
Posted in Money, Whole Life Insurance | Tags: agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Tags: 401(k) plans, Tags: 801(k) plans, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
In Memoriam To Debt, “Rate of Return” And The Tax Deductible Trap…
May 23, 2008 | Author dragonfly
If the price of gasoline doesn’t wake up America to the foolishness of its reliance on debt for lifestyle and “rate of return” and tax deferral for wealth creation, then we may all be speaking Arabic or Chinese within a few decades.
This blog and the book Money for Life…(thrive) in good times and bad are dedicated to helping Americans – and perhaps some in foreign lands too – escape the dungeon of debt where they are imprisoned and recapture the money that they are literally giving away to credit grantors, investment companies and the government.
Think about it. It’s as simple as 1,2,3…
- Debt will never make you rich.
- Bear-Stearns, one of the largest investment banks in the world, went broke chasing “rate of return”
- Every time you take a tax deduction from the government for a retirement contribution you are effectively taking out a loan that you’ll have to repay when you “retire.”
There is today, and has been for millennia, a better way to handle your money. You need to control the money that flows through your life, become your own banker and recover, in your own “bank,” the interest and principal that you currently pay to others, reduce or eliminate your dependence on the Pirates of Manhattan and the government’s hold on your future and declare yourself independent, just as the Founding Fathers did over 200 years ago.
Start today. Start here–> www.youBEthebank.com
___________________________
Posted in Debt, Money, Personal Financial Management, Retirement, Taxes, You BE the "Bank" | Tags: agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Tags: 401(k) plans, Tags: 801(k) plans, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | 1 Comment »
The True Cost Of Gasoline…
May 20, 2008 | Author dragonfly
“E.T. phone home.” E.T. The Extraterrestrial, 1982
How many American’s are going to “phone home” instead of going home this holiday weekend because they don’t want or can’t afford to spend the money it would take to fill up their gas tank three or seven times? Even for my high mileage compact it costs nearly $40 for a fill up.
The hesitation or inability to buy all the gas we need and want is a symptom. It’s not the disease. The disease is much more complex and affects manifold aspects of the lives of the typical American family. Let’s take a circuitous route to understanding the problem.
A plumber reported that the cost to replace about 15 feet of corroded galvanized pipe with copper and install a new sill-cock would cost about $300.00. That would include all the materials and repairing some damaged drywall.
If the homeowner took the position that he or she could do the job him or her self because he or she had read an article or two about this kind of repair and could buy all of the materials at the local home improvement store for about $75.00, you would think that person presumptuous and perhaps even foolish.
There’s a TV commercial that shows a surgeon on the phone to a patient suggesting that the patient could do his own appendectomy. Some home improvement stores suggest you can do anything around the house by taking one hour classes.
Several investment brokers run ads suggesting that you can invest successfully by occasionally getting information from a web site. Dozens of businesses offer “no interest and no payments” for 6, 12, 18, 24 months or longer.
When it comes to money, the Behemoths will say anything to get yours and make it theirs. Now, what the heck does that have to do with the price of gasoline and the trip you can’t afford to make to grandma’s house over the holiday?
Simply this; people who know how to handle their money are taking the trip. They are just as unhappy as you are about the price of gasoline and the cost of the trip, but they are in control because they have developed or discovered a way to deal with money that allows them to have what they need and want without regret or recrimination. They look forward with confidence and never look back with regret.
They have a guide that leads them through the jungle of claims and enticements and out of the swamp of misinformation and misleading advertising that traps so many Americans. You can join the informed minority that is in control of the money that flows through their lives, escape the swamp and build a personal economy on a solid foundation with a strong framework.
A great place to start –> www.TheMoneyForLifeBook.com
Posted in Money, Movie Quotes, Personal Financial Management | Tags: agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Tags: 401(k) plans, Tags: 801(k) plans, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | 2 Comments »
Learn More, Own More, Owe Less…
May 19, 2008 | Author Dr Agon Fly
“Carpe diem. Seize the day boys. Make your lives extraordinary.” Dead Poets Society, 1989
America! We have been bamboozled by BS from Behemoths (the name given to large corporations, unions and government.) As long as we adhere to their paradigm and wander like zombies through our financial lives, we are doomed to be, as Benjamin Franklin warned 200+ years ago, their servants.
Russ Wiles, a writer for the Arizona Republic, wrote this just a day or so ago:
May 18, 2008
Financial issues still baffling AmericansAre doctors and auto mechanics really easier to understand than financial professionals? One recent survey says so – the latest indication there’s a literacy gap out there when it comes to money issues.
Most Americans have a lot of financial burdens to carry, whether it’s simply paying the monthly bills or investing for retirement, drafting an estate plan or borrowing prudently. Yet many signs suggest millions of people aren’t up to the task.
The article goes on to discuss our lack of literacy, excess credit, failure to educate our youth and a variety of other observations. It’s time Americans take back their personal economies from the Behemoths and their minions. It’s time to “seize the day”; learn more about personal economies, own more of what we use every day instead of just using things that we finance; relying on debt for our well being instead of building wealth.
Carpe diem! –> www.TheMoneyForLifeBook.com
(Read the entire article here http://www.clarionledger.com/apps/pbcs.dll/article?AID=/20080518/BIZ/805180347/1005)
Posted in Debt, Money, Movie Quotes, Personal Financial Management, What Others Say | Tags: agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Tags: 401(k) plans, Tags: 801(k) plans, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Tom And Jerry And Money…
May 15, 2008 | Author dragonfly
Posted in Money, Personal Financial Management, Whole Life Insurance, You BE the "Bank" | Tags: agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Tags: 401(k) plans, Tags: 801(k) plans, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
American Money, American Oil, American Innovation…
May 9, 2008 | Author dragonfly
“Frankly, my dear, I don’t give a damn.” Gone With the Wind, 1939
America is committing suicide by Congressional Cowardice!
The Congress doesn’t “give a damn.” It has completely abrogated its sworn responsibility to provide vision, wisdom and leadership. Some in Congress have given their votes and their minds over to the insane claims of fringe groups who really hate America. Others have relinquished their power to the Behemoths; corporations, unions, lobbyists that disguise themselves as spokespersons for some group or cause, and government agencies whose only function is self preservation regardless of the cost to the Country and its People – that’s you and me and 300 million other Americans.
All in Congress have put political party goals above the needs of America.
The presidential candidates are members of Congress, too. Each of them has “caved” to one or more of the caveats of their constituents during the campaign. All of them have failed the “vision, wisdom and leadership” test when it comes to recognizing and dealing with the realities of the 21st century.
Obama naively clings to an exclusive far left agenda while promising to be a uniter. Clinton is strident as she proposes specific, liberal, tax-increase based solutions to every imaginable challenge masked in so much detail that even an advanced degree in economics wouldn’t help one understand – or believe; just like HillaryCare of 1993. McCain offers only partial insights into his thinking and programs as he tries to convert his image from that of an independent minded conservative to that of a ”sorta” party loyalist.
There are two intimately related issues that should drown out the cacophony of claims by the crazies and the wimps and overshadow every other concern:
- America is at war. Insane Islamic zealots believe that only they possess the truth, and that destroying the western world in the name of Allah is the path to their heaven. It’s war declared on America - not criminal activity.
- America’s – and the world’s – economy is based on oil. If America doesn’t tap into its own oil reserves – as every other country in the world is doing – America will soon become a slave to the OPEC nations like Saudi Arabia and Venezuela – the birthplaces of the Islamic and other crazies. At the same time, America needs to have the vision to commit significant resources to oil alternatives.
If our leaders deal with these two issues, every other concern will resolve itself.
Some will argue that the current economic malaise is driven by failures in both the oil and the financial industry. The financial industry, however, is becoming more and more dependent on oil rich countries to supply it with the fuel for its engine, and that means dependence on oil by proxy.
Your personal economy depends on America being a leading economic power. If America fails to maintain its status as the engine of liberty through its economic strength, you and I will become servants to some foriegn power.
We need to elect leaders who recognize and deal with these harsh realities instead of those in Congress today who pander to every Behemoth that promises a contribution to their campaigns to stay in office – translate that as “to stay in power.”
In the meantime, you need to find ways to save money that allows you to control the money in your life. At the micro level you can switch to energy efficient light bulbs, drive more slowly and less often, buy more fresh food and less prepared food; that will help you and the rest of us too.
At the macro level you need to gain control of your money, to apply principles and practices that have been tested and proven over centuries and millenia and that apply equally today. This blog attempts to shed light on them. For a fuller understanding –> www.TheMoneyForLifeBook.com
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Timely Re-post…The US Congress’s Money…
May 7, 2008 | Author dragonfly
While those in the US Congress – three running for president – are proposing a meaningless gasoline tax relief program, it’s important to remember that it won’t effect them at all and won’t really help the average American.
http://themoneyforlifeblog.com/?p=119#comment-29
Gain control of your money before the Behemoths do –> www.TheMoneyForLifeBook.com
_______________________________
Posted in Legal, Ethical, Moral, Money, Taxes | Tags: agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Tags: 401(k) plans, Tags: 801(k) plans, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Gold Ain’t Money Either…
May 7, 2008 | Author Dr Agon Fly
“Snap out of it!” Moonstruck, 1987
You can’t go shopping at WalMart and pay with gold. Gas stations don’t accept Krugerrands. The gold coins minted by the US government are for investors – not for circulation.
Wake up America!
You can’t buy wealth. If you buy gold in any form the person who sells it to you gets paid in cash not in gold – and it’s your cash. So does the stock broker, the real estate sales rep, the financial advisor or planner, the annuity sales rep and anyone else that sells investments of any kind. They work to sell you investments but they earn cash for doing so. HMMM!
Wealth is first and foremost the result of saving. You have to have cash to invest in anything. You have to save in order to have cash for investing. If you invest wisely your wealth will grow. If you invest all of your savings or invest out of income (think 401(k)) instead of from your saved money, you are taking a dangerous, imprudent and usually foolish risk. If your investments fail and you used all of your savings to invest, you have to start all over again.
There is a way to manage and measure your money that keeps you on a path to wealth – no matter what happens in the “market” – stock, gold, real estate, annuity, etc.
Saving Money Is In America’s DNA…
May 5, 2008 | Author Dr Agon Fly
“You talking to me?” Taxi Driver, 1976
Yes. Even if you haven’t a penny in the bank, I’m talking to you.
Pat was divorced early in life. He never fully recovered from the trauma and never remarried. Over the next 24 years, however, he became quite a successful salesman for an industrial supply company. He took what he considered to be good advice and maxed out his 401(k), contributed to an IRA when possible and bought into the companies stock purchase plan; he amassed quite a corral of assets. Pat chose not to create a “bank” of money aside from that.
Then reality struck.
Pat had remained close to his children over the years. In 1999 his oldest daughter suffered a stroke. His former wife and his other children had moved out of state. The care of his daughter fell on his shoulders. Since Pat was earning a significant income the financial pressure was bearable.
Then reality struck again.
Shortly after that in late 2000 the company he worked for was acquired by a major competitor and Pat was terminated. His company stock was automatically cashed in as a part of the buyout so Pat incurred a large tax liability and reduction in value as a result. He rolled his 401(k) into his IRA account on the advice of his broker. Also on the advice of his broker, he invested his “retirement” accounts in what was considered safe but still fairly aggressive mutual funds. (Hindsight tells you where this is headed, but it sounded like a good idea at the time.)
And, again!
By the summer of 2001, at the young age of 55, Pat had given up on finding work. His daughter’s care and his own monthly expenses had drained the money he received from the stock sale. Pat decided to start his own business. He no longer had a no-compete limitation and he still had his old customer relationships so he cashed in some of his IRA investments, paid penalties and taxes, bought some inventory and went to work.
And again on 9/11…
Pat’s infant business took an immediate hit as devastating to him as the hit to the Twin Towers was to the rest of us. Not only that, but the value of his investments fell over 62%. Pat was suddenly struggling to make ends meet, care for his daughter and salvage a business he had started on a shoestring.
Your Personal Economy
Pat’s story is not yet ended but it has served its purpose for this post. Pat’s American DNA motivated him to “save.” His advisors – and most of the pundits, publicists and prognosticators who rely on the Behemoths for their information and advice – led him down a path that led him and millions of other Americans into a dungeon of debt.
In Pat’s case the debt was mostly to his company and to the government. His stock had strings attached so he really didn’t entirely own it and the price he received was not based on value but on the whim and greed of his employer. His “savings” in tax qualified plans were really nothing more than loans from the government at an unspecified interest rate to be repaid later disguised as a current deduction and a future liability.
Every successful personal economy has four clearly defined characteristics and achievable goals:
- Freedom from debt to others – including debt to the government disguised as a future tax liability
- Income you don’t have to work for but you won’t outlive that is protected from inflationary pressures
- Ready cash to deal with the surprisingly unsurprising surprises that we all experience
- A legacy of wisdom and wealth to pay forward to those we care about
Does your personal economy measure up? It can –> www.TheMoneyForLifeBook.com
Posted in Money, Movie Quotes, Personal Financial Management, Retirement, The Four Pillars | Tags: agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Tags: 401(k) plans, Tags: 801(k) plans, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Save, Invest, Gamble or Become Your Own Banker…
May 2, 2008 | Author Dr Agon Fly
“Is it safe?” Marathon Man, 1976
SAVE…
When you save money, you’re guaranteed – insofar as that’s possible – to have more money at the end of each year than you had at the beginning. Interest increases the value of your savings and inflation and taxes gnaw at the growth that interest provides. This condition makes choosing a tax advantaged savings product an important part of your decision.
Cash value life insurance and deferred annuities have provided the perfect reservoir for savings for almost 200 years in America. Cash value life insurance – especially dividend paying life policies from mutual companies – have proven more effective than annuities because these policies allow you to access the cash values without penalty or taxes whenever you need to; a benefit not available with annuities.
INVEST…
Investing involves a much greater risk. When you invest in stocks, real estate, precious metals, commodities, etc. you are buying an ownership position. The future value of your investment is contingent upon the performance of your equity in a market over which you have no control. When your investment is debt – bonds, loans, etc. – your investment is safer but still relies on the success or failure of the entity to which the loan is granted.
Investors have to believe that they can see “across the valley;” that the future is reliably predictable by the past; that the ups and downs of the market in which they are investing will repeat themselves in a way that allows the investor to profit. This belief is the initial motivation but is challenged and becomes untenable when the investor needs money and the investment is in the valley.
GAMBLE…
Both saving and investing involve a gamble. The saver is gambling that inflation and taxes will allow some growth. The investor is gambling that the invested money will eventually grow beyond what could be expected in a savings program and will not be in a trough when money is needed and the investment has to be sold.
BECOME YOUR OWN BANKER…
There is a better way. If saving and investing are managed properly, the risk can be diminished and even removed when savings are used to fund purchases of both the things you need and want and the investments you wish to make. The business of becoming your own bank involves radically changing your mind about money, debt, saving and investing.
Americans have been lured into the Debt Paradigm and trapped in a dungeon of debt. The Money for Life Model teaches you how to handle your money in a way that serves both your short and long term financial goals without forcing you into a beans and rice lifestyle.
You owe it to your self to level out the valleys, to learn more and to own more –> www.TheMoneyForLifeBook.com
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Posted in Money, Movie Quotes, Whole Life Insurance, You BE the "Bank" | Tags: agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Tags: 401(k) plans, Tags: 801(k) plans, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
SOLD! 4,000 Copies of “Money for Life”
April 30, 2008 | Author dragonfly
“They’re here!” Poltergeist, 1982
Writing a book is a daunting task, but publishing a book and getting it to market makes writing feel like a walk in the park on a warm, sunny spring day – like today in Colorado.
Money for Life
In April of 2008 I wrote…
2,000 copies of Money for Life…How to Thrive in Good Times and Bad will arrive at my front door within hours and will get carried to the processing stations we have built in our basement. Our first task will be to inform those who bought the e-book how they can get their promised paperback copy.
We’ll then be sitting on $60,000.00 of inventory, a reasonably well defined and practiced fulfillment process and only a glimmer of intelligence about how to sell those 2,000 books and realize the profit they hold. Not that we haven’t studied the “how to” of selling; we have. It’s just that the process is so convoluted and complex that implementing it becomes a frog-in-the-well exercise – move forward two hops and slide back one; and, the well is very deep.
We hope the thousands of visitors to this blog have found benefit from what’s written here almost daily and recognize that the content of the Money for Life Book addresses the same topics in greater depth and offers more guidance than is possible in a few hundred daily (almost) words.
Special Discount Offer
We encourage you to take advantage of a SPECIAL OFFER –>
The paperback version of Money for Life…How to Thrive in Good Times and Bad is now available on this site for $19.95 – 33% off the Amazon price of $29.99
Posted in Money, Movie Quotes, You BE the "Bank" | Tags: book on money, books on money, books on personal finance, financial advice, financial advisor, financial planner, financial planning, jeff reeves, jeffrey reeves, life insurance, mass mutual, money book, money books, money for life, nelson nash, personal financial books, r nelson nash, The Four Pillars, Whole Life Insurance, why buy whole life insurance, why whole life insurance | No Comments »
Risk Management Must Read…
April 29, 2008 | Author dragonfly
“Elementary, my dear Watson.” The Adventures of Sherlock Holmes, 1939
Nothing is more elementary than risk management when it comes to saving, investing and financial planning. If you, or your advisors, allow the focus to shift to the ever fickle “rate of return” you will soon find yourself out of money or in bankruptcy.
Gary Halbert is insightful. His perspective reflects the common sense that is often wanting in less mature pundits and advisors. I encourage you to read the excerpt from his recent newsletter. It is loaded with wisdom. Better still, take some time and link to the entire article and soak up some of the ideas and information that makes a successful saver and investor, and creates a successful personal economy.
The Stock Market’s Decade-Long Drought
by Gary D. Halbert
April 22, 2008
IN THIS ISSUE:
- The Stock Market’s “Lost Decade”
- The Importance Of Risk Management
- Lesser-Known Investment Risks
- How To Determine Your Own Risk Tolerance
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The Importance Of Risk Management
Stock market volatility during the recovery phase of a sideways market is often significant, and the last couple of years have been no exception. This volatility is like riding a roller coaster for many investors. New interim highs make them feel that a market rally has taken hold, only to then experience yet another downhill run. Some who can’t stand the fluctuations in value get out of the market and sit on the sidelines, often without any plan for how to get back into the market later on.
No matter what the cause, the market’s recent action underscores the inherent risk of investing in the stock market. It also shows the danger of the buy-and-hold strategy, especially one that recommends investing in unmanaged “index” mutual funds. Sure, the markets will likely rebound eventually, but that will be of little consolation to investors who need their money now for retirement, or who may have bailed out of the markets at or near the bottom.
In past E-Letters, I have illustrated the relationship between losses and the amount of return you have to earn just to get back to where you started. Whenever I reprint this “break-even” table, I receive quite a response from readers indicating how this information opened their eyes to the risks they were taking. Because evaluating risks and avoiding large losses is so important, I have reproduced that break-even table below:
Amount of Loss
IncurredReturn Required
To Break Even10%
11.1%
15%
17.7%
20%
25.0%
25%
33.3%
30%
42.9%
35%
53.9%
40%
66.7%
45%
81.8%
50%
100.0%
60%
150.0%
70%
233.3%
To demonstrate the point of this table, the S&P 500 Index plunged apprx. 45% from its high of 1527.46 during the bear market of 2000-2002. Buy-and-hold index fund investors who suffered that 45% decline had to earn a total cumulative return of over 81%, just to get back to where they were in March of 2000, and it took them over seven years to do so.
However, even though the S&P 500 Index hit a “new record” in May of 2007 (and eventually climbed as high as 1565.15 on October 9th), the subprime debacle and potential recession have taken buy-and-hold investors back under water again! The S&P 500 Index closed at 1390.33 last Friday, down 175 points from its 2007 record territory.
For Nasdaq investors, the situation is much worse. Those who rode the market all the way down, over 70%, will require a return of over 233% just to get back to even, and the Nasdaq Index is nowhere near that point now, some eight years later.
This further illustrates that it is critical to avoid incurring large losses in the first place. If you can keep losses to a minimum, then you spend less time having to make up for lost ground.
Read the entire article here –> http://www.investorsinsight.com/blogs/forecasts_trends/archive/2008/04/22/the-stock-market-s-decade-long-drought.aspx
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SPECIAL OFFER –> The paperback version of Money for Life…in good times and bad – How to Thrive in the 21st Century will be released on May 1st, 2008. Everyone who buys the e-book version before May 1st will also recieve an autographed copy of the paperback when it is release. No special codes are needed. Thanks for making the purchase befor April 30th. Shipping and handling charges will still apply. –> www.TheMoneyForLifeBook.com
Posted in Money, Movie Quotes, Personal Financial Management, What Others Say | Tags: agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Tags: 401(k) plans, Tags: 801(k) plans, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
The Velocity of Money…
April 28, 2008 | Author dragonfly
“Wait a minute. Wait a minute. You ain’t heard nothin’ yet!” The Jazz Singer, 1927
In our family lives, money moves pretty quickly. First, the government takes a large chunk before we even receive our spendable pay. Next, health care costs and “retirement” deductions reduce our take home pay even further. That money moves at electronic speed.
When we do get money into our checking accounts or our pockets, it flies out almost immediately to pay the rent or the mortgage, utilities, cable, groceries, clothing, education, other necessities of living, and – most damaging – interest; on credit cards, car payments, store charge cards, payday loans, and on and on…
If you would like to get a handle on the velocity of your money, I encourage you to visit the Money for Life site below and order your FREE copy of Why Budgets Don’t Work. This brief white paper was written to benefit the regular subscribers to the Money for Life Newsletter and is the starting point for many who have gained control of the money that flows through their lives.
You will find the information and practices useful and reliable in every kind of economy – but especially in your personal economy.
Best wishes for success.
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SPECIAL OFFER –> The paperback version of Money for Life…in good times and bad – How to Thrive in the 21st Century will be released on May 1st, 2008. Everyone who buys the e-book version before May 1st will also receive an autographed copy of the paperback when it is release. No special codes are needed. Thanks for making the purchase before April 30th. Shipping and handling charges will still apply. –> www.TheMoneyForLifeBook.com
Posted in Money, Movie Quotes, Personal Financial Management | Tags: agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Tags: 401(k) plans, Tags: 801(k) plans, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
A Money Limerick and A Money Lesson…
April 24, 2008 | Author dragonfly
Originally posted on February 17th, 2008
-
Comedians know about funny,
-
And beekeepers know about honey.
-
And chances are good
-
That both wish they could
-
Know more than they know about money.
Everything you do in life is affected by money and money affects everything you do.
Like the comedian and the beekeeper, you are an expert at what you do. You spend most of your time and energy knowing what you know so you can pursue the practice or career that you have chosen and increase the money that flows through your life. You , however, are not necessarily an expert with money. Like the comedian and the beekeeper, you’d probably like to know more about how to benefit from the money that enters your life when you do what you do.
Here’s a little exercise that might help. Make a list of the items you have purchased for about $30 during the past month: a couple of bottles of wine for dinner, lunch at an average restaurant, a shirt or blouse on sale, dry cleaning, a movie with a friend or spouse, music, a nosebleed seat at a ball game, a subscription to a magazine or newspaper, and on and on. Now, of all the items and events you have spent $30 on in the last 30 days, how many of them made some Behemoth wealthier instead of making you wealthier?
Well, here’s one more item that you can spend about $30 on that lets you know more about money than you know now; that promises to make you wealthier; that reveals secrets that have been buried for decades by merchants of misinformation and financial snake oil sales reps; that lets YouBeTheBank…
follow this link –> www.TheMoneyForLifeBook.com
You’ll never be sorry that you know more or own more and Money for Life…in good times and bad will help you with both.
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Posted in Money, Personal Financial Management | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Putting Money Into Your Home…
April 20, 2008 | Author dragonfly
“Oh, Jerry, don’t let’s ask for the moon. We have the stars.” Now, Voyager 1942
This weekend my financial planner son-in-law and I are completing the renovation of a room addition that was made by former owners several decades ago. We are installing all new windows, doors, electric, lighting, plumbing, insulation, drywall, flooring and cabinets…whew! In other words, we are building a new room addition using only the basic framing from the old.
The cost of the project, including the cost of subcontractors, will be about 2% of the value of the house but will be creating about 8% more usable space, and that space will be fully updated 2008 space in a 1946 vintage house.
We Americans often overlook value in housing and opt for square footage or prestige. We sink lots of money into a residence that is more appearance than substance. We make improvements that satisfy personal wants and needs but don’t add true value. If you’re considering a home improvement, use a formula like the one above to determine the value the improvement will create.
A two dollar improvement that adds an eight dollar room is worth doing. An eight dollar improvement that adds a two dollar space is not.
Don’t ask for the moon when you already have the stars.
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SPECIAL OFFER –> The paperback version of Money for Life…in good times and bad – How to Thrive in the 21st Century will be released on May 1st, 2008. Everyone who buys the e-book version before May 1st will also receive an autographed copy of the paperback when it is release. No special codes are needed. Don’t be an April fool; make the purchase before April 30th. Shipping and handling charges will still apply. –> www.TheMoneyForLifeBook.com
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Borrowing The Government’s Money…
April 19, 2008 | Author dragonfly
“Greed, for lack of a better word, is good.” Wall Street, 1987
Wes thought himself a pretty well informed financial advisor and planner. For years he’s told his clients to max out their 401(k) plans and put as much as possible into IRA’s and other tax sheltered programs. His premise is that taxes saved today are better than taxes paid later; that tax rates in retirement will be less than tax rates during one’s working career; that using the government’s money is always better than using one’s own money.
He followed his own advice in this regard and was now about to retire. To test the theory behind his 40+ year practice, Wes looked back over the strategies he used during his working life. He was shocked when he realized that the taxes he saved were nothing more than loans that the government was granting him and millions of other Americans. He finally sees that the taxes - also known as ”interest” – he would pay during retirement greatly exceeded the benefit he gained from the deductions – also known as “loans” – the government granted him earlier in life.
Wes had charts and graphs and hypothetical illustrations that “proved” his theories – theories promoted by the vast majority of financial advisors and planners. But, now Wes is faced with the reality that his successes are going to cost him much more in post retirement taxes than the taxes he saved.
But wait! The issue isn’t really about taxes. Isn’t the real issue net income after taxes?
Yes and no. Wes saw that his sophisticated planning and disciplined investing created a significant pool of money over the years and his retirement income would be more than adequate to his needs. He also saw, however, that had he followed a less sophisticated and less government dependent approach he could have had an equivalent or even better retirement income and pay few if any taxes, and he would be able to pay forward his money-wisdom and a much greater portion of his wealth to those he cared about.
“Greed, for lack of a better word, is blind.” Dr Agon Fly, 2008
Using other people’s money – even if it’s the government’s – is never ever a wise financial move. Learning to control the money that flows through your life in a way that let’s You Be The Bank is safer, steadier and more secure.
_________________________________
SPECIAL OFFER –> The paperback version of Money for Life…in good times and bad – How to Thrive in the 21st Century will be released on May 1st, 2008. Everyone who buys the e-book version before May 1st will also recieve an autographed copy of the paperback when it is release. No special codes are needed. Don’t be an April fool; make the purchase befor April 30th. Shipping and handling charges will still apply. –> www.TheMoneyForLifeBook.com
Posted in Money, Movie Quotes, Personal Financial Management, Retirement, Taxes | Tags: Add new tag, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Tags: 401(k) plans, Tags: 801(k) plans, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Luck And Money…
April 16, 2008 | Author dragonfly
“Today, I consider myself the luckiest man on the face of the earth.” The Pride of the Yankees, 1942
The final proof of Money for Life,,,in good times and bad was sent to the printer today. Now the work of getting this amazing document that recalls the teachings of the world’s wisest financial minds from millennia past into the hands, minds and hearts of Americans begins in earnest
Thanks to all who read this blog for your support and encouragement.
I am exhausted today from the emotional and intellectual effort of proofing so I am ending this blog post early.
______________________________
Money for Life…in good times and bad – How to Thrive in the 21st Century will be released on May 1st, 2008. Everyone who buys the e-book version before May 1st will also receive an autographed copy of the paperback when it is release. No special codes are needed. Don’t be an April fool; make the purchase before April 30th. Shipping and handling charges will still apply. –> www.TheMoneyForLifeBook.com
Posted in Debt, Legal, Ethical, Moral, Money, Personal Financial Management, Retirement, Taxes, The Four Pillars, Whole Life Insurance, You BE the "Bank" | Tags: 801(k) plans, Add new tag, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Tags: 401(k) plans, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Easy Money – Or Not…
April 15, 2008 | Author dragonfly
“If you build it, he will come.” Field of Dreams, 1989
Bernice and Morrie were born poor. They want to escape the demands of a personal economy based on systematically acquiring wealth through saving, debt elimination and building equity in investments that are fully paid for. They are always looking for easy ways to get more money and more of the stuff that money can buy.
Bernice and Morrie are the perfect candidates for every scam that comes down the road. The scammers – even the ones with high visibility and having great reputations like Bear-Stearn – know that any product or investment that promises easy money attracts people who are looking for easy money.
Whether it’s a dishonest sales rep selling a product, a shady advisor selling an investment, one of the financial pundits on television or radio, an infomercial promising easy wealth in real estate investing, a book or seminar guaranteeing profit without risk or even the US Government promising a comfortable retirement based on current tax deductions (think about that for a minute) - the con artists know that if they build it, some will come.
Bernice and Morrie are trapped in a dysfunctional financial model that incessantly chants its mantra: “You can have everything you need and anything you want as long as you have enough credit!” You can have the sixty inch flat panel TV from the big box store, the new SUV, the dream vacation, the lavish “it-only-happens-once-in-a-lifetime” wedding, the upscale home in the hottest new neighborhood, a perfect retirement based on current tax deductions – a disguised form of credit.
To this way of thinking “I can afford it” really means you have enough income to make the payments – including huge amounts of interest and future taxes. It whispers that you only get to use the things you “buy”; that you really don’t own them. But, it shouts that just “having” them proves your wealth and worth. This model is called the Debt Paradigm.
The corollary of the debt paradigm mantra that glorifies credit is the one that says it’s easy to become wealthy; just follow the advice of the TV pundits, the financial media and the advertising of the Behemoths and you too can be a Donald or an Oprah.
BUNK!
This model is designed to make others wealthy at your expense. It makes bad decisions feel good.
Bernice and Morrie discovered the fallacy of this approach in 2001 and 2002 when the lost most of their wealth to the completely unpredictable stock market and then lost most of their home equity in 2006 by following the advice to mortgage their home to the max and “invest” – aka gamble – their equity.
Fortunately Bernice and Morrie are still relatively young; in their mid forties. They have restructured their personal economy;
-
they bought a smaller home
-
they are using an equity acceleration program to pay off the mortgage in 10 years or less
-
they are contributing to cash value life insurance policies on themselves to build their personal “banks”
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they are committed to use only those banks to borrow for future consumer purchases so they can recapture all of the principal and interest that they would otherwise pay to credit grantors
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they are adding money to their children’s “banks” and teaching them how to borrow and repay that money when they need it for education, auto-purchases and even their homes
Bernice and Morrie have abandoned the Debt Paradigm and adopted the Money for Life Model.
_____________________________________________
SPECIAL OFFER! –> The paperback version of Money for Life…in good times and bad – How to Thrive in the 21st Century will be released on May 1st, 2008. Everyone who buys the e-book version before May 1st will also receive an autographed copy of the paperback when it is release. No special codes are needed. Don’t be an April fool; make the purchase before April 30th. Shipping and handling charges will still apply. –> www.TheMoneyForLifeBook.com
Posted in Money, Movie Quotes, Personal Financial Management | Tags: 401(k) plans, 801(k) plans, Add new tag, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Financial Plan – Or Not…
April 14, 2008 | Author dragonfly
Albert Einstein said, “The significant problems we have cannot be solved at the same level of thinking with which we created them.”
The 50 page leather bound financial plan that you receive from the well known company with the large advertising budget is at best a snapshot of a fantasy; it represents the “level of thinking” that has America in debt up to its eyeballs with a negative savings rate for the past three years. It is out of date when you receive it and out of touch with the reality of your life’s daily challenges.
The typical financial plan wants for wisdom.
Think about it. Do you rush to the bookshelf to pull out your neatly bound financial plan when your family faces a crisis and you need money?
Ask yourself how you’d feel if, instead of unfounded fantasies in a fancy leather binder…
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You were free from debt-to-others; no mortgage, no car payments, no credit card bills or store charge card balances, no home improvement balances at the home improvement center…no debt of any kind
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You had an income you didn’t have to work for, you couldn’t outlive, was protected from inflationary pressures, and wasn’t decimated by interest payments and taxes every month
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You had ready money to take care of yourself and your family when some planned or unplanned life event required it – job loss, college for the kids, illness or disability, a long awaited second honeymoon, long term nursing home expense
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You had a secure tax free legacy of your wisdom and your wealth that you could pay forward on your terms to those you care about.
These are the Four Pillars that are the framework of all stable financial structures because they rest on a foundation of money that you – and you alone – control.
_______________________________________
SPECIAL OFFER! –> The paperback version of Money for Life…in good times and bad – How to Thrive in the 21st Century will be released on May 1st, 2008. Everyone who buys the e-book version before May 1st will also receive an autographed copy of the paperback when it is release. No special codes are needed. Don’t be an April fool; make the purchase before April 30th. Shipping and handling charges will still apply. –> www.TheMoneyForLifeBook.com
Posted in Money, The Four Pillars, What Others Say | Tags: 401(k) plans, 801(k) plans, Add new tag, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Clarity About Money – Revisited, Again…
April 12, 2008 | Author dragonfly
“Love means never having to say you’re sorry.” Love Story, 1970
The second question that came up about Flo, Many Jane and Vern was, “What happens to the relationship with the kids if Mom uses a Money for Life Guide instead of Vern, who is in a competitive position?”
Vern worked for a Behemoth – a large publicly held corporation or government agency. He was bound to a set of practices designed by his employer. The Behemoths and their minions generally have three goals built into whatever they do.
- Get as much of the customer’s money as possible into the Behemoth’s coffers
- Sell investment and insurance products that produce the highest income for the Behemoth
- Restrict the activity of its brokers to avoid law suits by disgruntled customers
The Money for Life Guide might have been able to explain the principles and practices that s/he used to create the foundation and framework for Flo to Mary Jane and Vern. It’s more likely that the peace of mind and security that accrued to Flo by following the Money for Life Guide’s advice would have been evident to the kids and caused them to learn more.
In any event, it is seldom wise and never the responsibility of parents to conduct business with children – especially when the future security of the parent is at stake, as it was with Flo. If Mary Jane and Vern were honestly concerned about Flo and her future they would recognize this themselves and accept Flo’s decision.
“Love means never having to say you’re sorry.”
___________________________________________
SPECIAL OFFER! -> The paperback version of Money for Life…in good times and bad – How to Thrive in the 21st Century will be released on May 1st, 2008. If you buy the e-book version before May 1st, you’ll also receive an autographed copy of the paperback when it is released. No special codes are needed. Make the purchase before April 30th. Shipping and handling charges will still apply. -> http://www.themoneyforlifebook.com/
Posted in Legal, Ethical, Moral, Money, Movie Quotes | Tags: 401(k) plans, 801(k) plans, Add new tag, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Clarity About Money – Revisited…
April 11, 2008 | Author dragonfly
“You know how to whistle, don’t you, Steve? You just put your lips together and blow.” To Have and Have Not, 1944
Yesterday I talked about Jerry’s widow Flo. I described how her daughter Mary Jane and her son in law Vern failed her and left her in a state of near poverty. The blog got a couple of questions that motivate a follow-up.
The first question was, ”What would a Money for Life Guide have done for Flo?” Knowing how to deal with money and knowing how to whistle do not come naturally and Flo wouldn’t have a great deal of time to learn.
Jerry died at age 63. He left Flo, age 62, with $250,000.00 in life insurance, almost $200,000.00 in IRA money, a $190,000.00 home that was paid for and $90,000.00 in savings and bank CDs.
A Money for Life Guide would have diversified Flo’s investments. S/he would have placed the life insurance proceeds and IRA money into a variety of secure, guaranteed income annuities. These would deliver initial cash flow of about $2,250.00 per month without using any principal. Flo’s income could increase if the underlying investments performed well, but would never decrease.
Flo also qualified for $1,800.00 per month in Social Security benefits. This benefit also has an inflation hedge built in. In other words, Flo would be debt free – remember that her home was paid for – and have an income of over $4,000.00 per month that she didn’t have to work for but that she wouldn’t outlive.
Flo’s Money for Life Guide would also move much of the $90,000.00 that was in the bank into a cash value life insurance policy over a period of four or five years. This creates a death benefit legacy for her daughter and for her possible grandchildren.
The cash values in her life insurance policies are still accessible by Flo if she needed them for any reason. In addition, the principal amount in her annuities, along with the equity in her home serve as Flo’s hedge against future medical and long term care expenses.
To summarize: Flo has set the four pillars of a successful personal economy. She is
- debt free,
- has an income she doesn’t have to work for and she won’t outlive,
- have money to deal with life’s surprises and
- leaves a legacy of wisdom and wealth for those she cares about
Finally, Flo continues to work part time at her passion but does not earn enough to reduce her social security. This money is being deposited into another cash value life insurance policy – another “bank” – that Flo can access if and when she ever needs it and add to her legacy if she doesn’t.
_____________________________
SPECIAL OFFER! –> The paperback version of Money for Life…in good times and bad – How to Thrive in the 21st Century will be released on May 1st, 2008. If you buy the e-book version before May 1st, you’ll also receive an autographed copy of the paperback when it is released. No special codes are needed. Make the purchase before April 30th. Shipping and handling charges will still apply. –> www.TheMoneyForLifeBook.com
Posted in Money, Movie Quotes, Personal Financial Management, Retirement, The Four Pillars | Tags: 401(k) plans, 801(k) plans, Add new tag, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Clarity About Money…
April 11, 2008 | Author dragonfly
“We rob banks.” Bonnie and Clyde, 1967
Florence was a teen during WWII and one of a dozen children. She and her husband, Jerry, had only one child and lived a very comfortable life in one of the nicer neighborhoods of a medium sized mid-western town.
Flo, as she was known to her friends and family, was widowed a few years ago. Jerry had always managed their money, so Flo was not really ready when it came to taking charge of the families finances. In desperation but with confidence she turned to her daughter Mary Jane, an accountant, and her husband Vern, a broker for one of the Behemoths.
As it turns out, Mary Jane and Vern could have been named Bonnie and Clyde. What Vern didn’t lose of Flo’s money in the market, Mary Jane spent.
Today Flo is living on Social Security, income from a reverse mortgage, and a small pension; her credit card balances are also creeping upward. The six figure life insurance policy proceeds and substantial savings that Jerry left her are gone. Her daughter and not-too-bright-or-honest son in law Vern are promoting a program that has families taking all of the equity out of their homes and putting it into financial products that promise amazing returns but guarantee nothing.
Bonnie and Clyde, as reprehensible as they were, were at least honest about what they did; “We rob banks.” They didn’t want the peoples money. They wanted the banks’ money.
Money for Life…in good times and bad is a book that teaches you how to handle your money in a way that lets YouBeTheBank, and also teaches you how to keep your money safe from modern day Bonnies and Clydes.
If Flo had been advised by a Money for Life Guide, she would still have all of her money, no debt, a significant income she wouldn’t outlive, and a legacy to leave to her grandchildren – and perhaps to Mary Jane and Vern if they chose to follow and teach Money for Life instead of using every scheme that came along to put other people’s money into their pockets.
SPECIAL OFFER! –> The paperback version of Money for Life…in good times and bad – How to Thrive in the 21st Century will be released on May 1st, 2008. Everyone who buys the e-book version before May 1st will also recieve an autographed copy of the paperback when it is release. No special codes are needed. Don’t be an April fool; make the purchase befor April 30th. Shipping and handling charges will still apply. –> www.TheMoneyForLifeBook.com
Posted in Money, Movie Quotes, Personal Financial Management | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
The Investments You Need…
April 10, 2008 | Author Dr Agon Fly
“I’ll get you my pretty, and your little dog too.” The Wizard of Oz, 1939
A commercial that is currently running on TV explains how easy it is for you to move your money from wherever it is now into “the investments you need” and the coffers of the company running the ad. It’s their way of saying “I’ll get you my pretty…”
The problem with this ad and so many others like it is that most Americans don’t need investments. Most Americans NEED:
- ~ to get out of debt
- ~ to save money so they can turn it into income they don’t have to work for and that they can’t outlive
- ~ to insure that they can pay the bills when the unexpected happens – and it always does
- ~ to teach those they care about how to stay out of debt, how to avoid the BS of the Behemoths about “needing” investments, and how to be their own bankers
I once asked a group of small business owners what they would call a person who accomplished these four goals. I got several answers but the one that garnered the most attention – and laughs - was made by a woman that owned a drapery company: “I’d call that person” she said, “a figment of your imagination.”
She was and is wrong. Many Americans have discovered that being one’s own banker is a safe and sure way to achieve these goals – a way that is possible for everyone who chooses it. You can do this and Money for Life…in good times and bad gives you the road-map, the tools and the guidance to do it.
SPECIAL OFFER! –> The paperback version of Money for Life…in good times and bad – How to Thrive in the 21st Century will be released on May 1st, 2008. Everyone who buys the e-book version before May 1st will also receive an autographed copy of the paperback when it is release. No special codes are needed. Don’t be an April fool; make the purchase before April 30th. Shipping and handling charges will still apply. –> www.TheMoneyForLifeBook.com
Posted in Money, Movie Quotes, The Four Pillars, What Others Say | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
More Money For Them, Less Money for You…
April 9, 2008 | Author Dr Agon Fly
“I’m mad as hell, and I’m not going to take this anymore!” Network, 1976
The economy is in a slump. The housing market is in a mess. The money markets are in confusion. The typical American family has been led into a dungeon of debt.
Not so with the members of the US Congress. They are getting richer and now they want to raise your taxes. They say it’s a tax increase for the richest Americans.
The truth is, increasing the current tax burden on Americans will not affect the richest in a significant way. If you are earning a million or two or more a year – and there are many earning more than that - your lifestyle will not be dramatically affected by a tax increase. Yeah, you’d be mad as hell but you wouldn’t end up at the soup kitchen.
But, if you are a typical American family, you could be driven to the poor house by the irresponsible tax and spend US Congress. Here’s what you can expect if the unconcerned and politically motivated Washington elite get their way:
“Why this large tax increase? The tax code changes enacted in 2001 and 2003 are scheduled to expire at the end of 2010. If they do, statutory marginal tax rates will rise across the board; ranging from a 13% increase for the highest income households to a 50% increase in tax rates faced by lower-income households. The marriage penalty will be reimposed and the child credit cut by $500 per child. The long-term capital gains tax rate will rise by one-third (to 20% from 15%) and the top tax rate on dividends will nearly triple (to 39.6% from 15%). The estate tax will roar back from extinction at the same time, with a top rate of 55% and an exempt amount of only $600,000. Finally, the Alternative Minimum Tax will reach far deeper into the middle class, ensnaring 25 million tax filers in its web.” The Coming Tax Bomb, The Wall Street Journal, 4/8/2008 (emphasis added by the blog)
We do not have much to say about the workings of the US Government other than our vote. As powerful as that is, when you have an entrenched aristocracy like the one in DC, even the right to vote does not allow for dramatic changes.
It is incumbent upon each American to develop individual financial programs and practices to protect him or her self from the wild and unpredictable misadventures of the Behemoths – the Federal Government being one of them. There is a way.
You can handle your money and your personal economy so that you can be your own banker and exercise much greater control of the money that flows through your life. This way is clearly defined in Money for Life…in good times and bad.
SPECIAL OFFER! –> The paperback version of Money for Life…in good times and bad – How to Thrive in the 21st Century will be released on May 1st, 2008. Everyone who buys the e-book version before May 1st will also recieve an autographed copy of the paperback when it is release. No special codes are needed. Don’t be an April fool; make the purchase befor April 30th. Shipping and handling charges will still apply. –> www.TheMoneyForLifeBook.com
Posted in Money, Movie Quotes, Personal Financial Management, Taxes | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Investments Are Not Money…
April 8, 2008 | Author Dr Agon Fly
“You’re gonna need a bigger boat.” Jaws, 1975
I read and/or review dozens of articles dealing with economics, saving, investing, and other money related topics every day. The article below illustrates that many financial writers are blind to the fact that the Behemoths they rely on for information create complexity where simplicity is warranted in order to sell more of their investment products.
I could write a dozen blogs just from the brief excerpt below, but I want to focus on just one clause; “…determining types of investments to make and knowing how much they will need to retire…” First, make note that the author addresses two different topics in just a few words; “investments” and “how much they will need to retire” – that could be savings, income, or just plain money.
You can’t spend investments. They will not pay your post-retirement medical bills (estimated at over $200,000), nor your probable long term care expenses (estimate to be over $350,000). Investments are based on a risk-reward algorithm not on your need for money to pay your bills. The Behemoths sell investments for money; investments are not money.
Investments may or may not deliver dividend income to pay monthly expenses. Investments in companies like Enron, Global Crossing, Qwest, MCI and other “highly recommended” stocks produced poverty instead of wealth. Mutual funds rise and fall with the tides of the markets and, if you need money at low tide, you’re just out of luck.
Investment “returns” are a function of assumed appreciation in value and dividends paid. Returns may or may not occur and may not translate into money or income when you retire. Retirement planning is a shibboleth perpetuated by the Behemoths so they can sell you more investments.
What you really need is a system for managing the money that flows through your life; a system that works all the time instead of the robotic thinking that goes into “retirement planning” and assumes that the process is complete when you reach the magic moment of retirement.
The retirement planning model doesn’t work. You need “a bigger boat.” Money for Life as a better alternative to the myth that there is such a thing as retirement planning.
SPECIAL OFFER! –> The paperback version of Money for Life…in good times and bad – How to Thrive in the 21st Century will be released on May 1st, 2008. Everyone who buys the e-book version before May 1st will also recieve an autographed copy of the paperback when it is release. No special codes are needed. Don’t be an April fool; make the purchase befor April 30th. Shipping and handling charges will still apply. –> www.TheMoneyForLifeBook.com
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“Affluent and Non-Affluent Find Similar Roadblocks in Retirement Planning
April 7, 2008
A quarter of Americans have not yet started planning for retirement, according to a new survey released by Bank of America.The study of 1,000 interviews surveyed 750 nationally representative Americans and 250 affluent Americans (with $100,000 to $3 million in investable assets). Both groups identified two key areas of confusion about retirement planning: determining types of investments to make and knowing how much they will need to retire. However, non-affluent Americans also cited when to retire and how to start planning as difficulties.”
Read the rest here –> http://www.financial-planning.com/asset/article/563421/affluent-and-non-affluent-find-similar-roadblocks.html?pg
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Money Smarts and Mortgages…
April 7, 2008 | Author Dr Agon Fly
“You’ve got to ask your self one question: ’Do I feel lucky?’ Well, do ya punk?” Dirty Harry, 1971
Jim and Janet have no children and they still struggle at age 40-something to save and invest enough to secure their financial future. They were presented with the opportunity to buy their first home three years ago by one of Jim’s friends who was in the mortgage business.
They were convinced that it was a deal that could not lose;
- no money down
- low monthly payments for two years
- extra cash at closing to pay off some credit card debt and, most of all,
- the assurance by the mortgage seller that the worst that could happen if the payments got too burdensome would be that the house would have appreciated in value and could be sold for a profit.
Jim and Janet were feeling lucky. They took the deal. Today the house is worth less than they paid for it, the payments are unaffordable, the credit cards are maxed out again and selling the house in a neighborhood where over 40% of the homes are already in foreclosure is nearly impossible.
Jim and Janet have an alternative that most don’t have. They have no children. Because of that Jim and Janet are both seeking part time work to supplement their income and to avoid foreclosure and probable bankruptcy. Not a pleasant situation.
The Behemoths and their minions have convinced millions of Americans that owning a home at any cost is worthwhile.
BUNK!
Had Jim and Janet adopted the principles and practices of Money for Life, they would not have prematurely bought the house. They would have started a “bank,” paid off their debt and saved money for a down payment. Had they done that, they could today buy a home in a solid neighborhood for a good price, with a low interest conventional mortgage, for payments they could afford now and into the future. Jim and Janet are not alone, however. The excerpt from US News and World Report below demonstrates this.
If you would like to avoid situations that can create financial difficulty for you and your family, I encourage you to take a look at www.TheMoneyForLifeBook.com and take advantage of the FREE white paper. Or better still the SPECIAL OFFER! –> The paperback version of Money for Life…in good times and bad – How to Thrive in the 21st Century will be released on May 1st, 2008.
Everyone who buys the e-book version before May 1st will also receive an autographed copy of the paperback when it is release. No special codes are needed. Don’t be an April fool; make the purchase before April 30th. Shipping and handling charges will still apply. –> www.TheMoneyForLifeBook.com
___________________________________
“Buyers are well-informed and rational. Investment vehicles might be remarkably innovative, but consumers seem to be as gullible as ever. It’s obvious now that some home buyers over the past few years took out loans far beyond what they could afford, with foreclosure probably inevitable even if house prices had continued to rise. But even people who consider themselves financially literate aren’t so shrewd. A 2007 study by the Federal Trade Commission, for instance, found that:
– 20 percent of borrowers looking at mortgage disclosure forms couldn’t identify the interest rate amount
– 24 percent couldn’t tell which loan was less expensive, when looking at two different applications
– 30 percent couldn’t tell if the loan included an expanded “balloon payment” at some point
– 44 percent couldn’t tell if there was a prepayment penalty for refinancing within two years.”
Excerpted from U.S.News & World Report
4 Sub-prime Myths That Could Derail Reform
Friday April 4, 1:56 pm ET
By Rick Newman
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Make Money On E-Bay – Or Not…
April 6, 2008 | Author Dr Agon Fly
“The stuff that dreams are made of.” The Maltese Falcon, 1941
Jonathan and Stacey have an unconventional family. Stacey is a highly compensated executive and is rising rapidly in her profession. Jonathan is an innovative and creative artist. Jonathan stays at home with the couples two children, works on his art when he can and dabbles on eBay as a way of making a few extra dollars to feed his passion.
His eBay adventure didn’t start out as an avocation, however. Like many other easy money schemes such as multi-level-marketing programs, foriegn exchange trading, precious metals deals, or day trading on the stock exchanges, it began as a fantasy about a fortune. It wasn’t long, though, before Jonathan and Stacey both recognized that success was unlikely. When Stacey became pregnant with their second child – well, that sealed the deal on the role of eBay in their financial future.
Reality and common sense tell us that there is no such thing as “easy money.” There are ways of making money – like those mentioned above – that are particularly suited to certain individuals; that are fulfilling, fun and rewarding if you and that way of making money are compatible. If your personality, skills and psyche are not in synch with a particular profession or business opportunity, failure is assured.
You might make a lot of money, but it won’t be easy, you’ll not be happy, and eventually you’ll find a way out of that situation – drugs, infidelity, alcohol, eBay, fishing, golf or some other distraction. The same holds true for financial practices. We all have two professions; one is the career of our choosing; the second is being our own banker and managing the money that flows through our lives.
Many individuals and families ignore their second profession or see it as a nuisance. That’s because their personality, skills and psyche are out of synch with the way they deal with their money. Americans have been led to believe that their personal economies are best served by “plans” devised by Behemoths – large, publicly owned financial institutions. Those “plans” are the counterparts of the quick and easy money schemes.
It is no more valid to expect to succeed using the standardized robotic thinking that goes into such plans, than it would be to expect every American to succeed on eBay.
There is a better way for you to take control of the money that flows through your life, a much better way; one that is adaptable to every American and to every situation; one that is based on principles and practices that have been known to the money-wise for millennia and practiced by financially successful Americans from the days of the Founding Fathers until today.
You can learn about this amazingly simple and effective approach by following this blog for a year or two or you can spend $29.95 and buy a book that will tell you most of what you need to know to debunk the bull of the Behemoths and escape the Dungeon of Debt they have built for you.
The Book? Money for Life…in good times and bad – How to Thrive in the 21st Century
SPECIAL OFFER! –> The paperback version of Money for Life…in good times and bad – How to Thrive in the 21st Century will be released on May 1st, 2008. Everyone who buys the e-book version before May 1st will also receive an autographed copy of the paperback when it is release. No special codes are needed. Don’t be an April fool; make the purchase before April 30th. Shipping and handling charges will still apply. –> www.TheMoneyForLifeBook.com
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Posted in Money, Movie Quotes, What Others Say | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Weekend Hiatus for Blog Maintenance…
April 5, 2008 | Author Dr Agon Fly
The WordPress blog system that we use to publish this blog has been revised. The revisions are dramatic and extensive so it will take some time to figure out how to take advantage of all the new stuff.
In the meantime, if you’ve just found The Money for Life blog we encourage you to read some of the previous posts and the separate pages listed on the right to familiarize yourself with the wealth of information and insights about money, saving, spending, investing and other topics that can help you manage your personal economy.
You may also want to take a look at this SPECIAL OFFER! –>
The paperback version of Money for Life…in good times and bad – How to Thrive in the 21st Century will be released on May 1st, 2008. Everyone who buys the e-book version before May 1st will also receive an autographed copy of the paperback when it is release. No special codes are needed. Don’t be an April fool; make the purchase before April 30th. Shipping and handling charges will still apply. –> www.TheMoneyForLifeBook.com
_____________________________
Posted in Money | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt management, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, millionaire, Money, money book, money books, money for life, money under management, mortgage, mortgage management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life, new york life insurance company, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, stocks, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
The Pending Recession and Personal Financial Armor…
April 4, 2008 | Author Dr Agon Fly
“Fasten your seatbelts. It’s going to be a bumpy night.” All About Eve, 1950
John and Marion’s business is just beginning to pay off after two years of struggling to get started. Unfortunately, their business is not recession proof so making sure their personal economy is prepared for the negative effect a major slump might have on it – and them – is critical.
When the economy gets bumpy, there are two of the Four Pillars to which you need to pay close attention; freedom from debt and having ready cash to deal with the surprisingly unsurprising surprises that life sends your way. This is especially true for small business owners who rely on cash flow more than the employed worker.
John and Marion have decided to re-organize a few things to assure liquidity if a down-turn affects their personal economy to a greater extent than they anticipated.
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~ First, they refinanced their home at a significantly lower interest rate, so their monthly payments remained about the same.
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~ They also “harvested” an extra $20,000.00 of equity from the refinancing and used that money to eliminate all of their other debt – mostly credit card debt – freeing up several hundred dollars each month.
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~ That leaves them with just one other debt to repay; a loan they made to themselves from the cash values of their life insurance policies. This loan will be eliminated quickly using the extra cash flow. This will restore the cash values in their policies. These values are guaranteed to grow every year regardless of what happens in the general economy and become the family’s and the business’s first line of defense against life’s surprises.
-
~ Their mortgage then becomes their only debt.
-
~ They also obtained a $100,000 equity line of credit today that they may not be able to get later. Should the business encounter “a bumpy night,” and their business or their personal economy requires it, John and Marion can tap into their HELOC.
There is one aspect of John’s and Marion’s personal economy that would be troublesome in a severe recession; their investments. Most of the money they have invested is in mutual funds that could lose significant value in a recession. The couple has decided to watch their mutual funds and the market more carefully in the months ahead and to move the money into cash or cash equivalents if the values begin dropping a lot.
Their mutual fund sales rep suggests that they should ride out the “bumpy night” and that the market will rebound – eventually. John and Marion believe that they would rather lose the potential for an eventual gain in return for a smaller guaranteed one today.
Money for Life…in good times and bad taught John and Marion the strategy that armors them against recessions, depressions, inflation, deflation or stagflation. Ask yourself whether or not that strategy makes as much sense for you as it does for them. If so, then take advantage of this…
SPECIAL OFFER! –> The paperback version of Money for Life…in good times and bad – How to Thrive in the 21st Century will be released on May 1st, 2008. Everyone who buys the e-book version before May 1st will also receive an autographed copy of the paperback when it is release. No special codes are needed. Don’t be an April fool; make the purchase before April 30th. Shipping and handling charges will still apply. –> www.TheMoneyForLifeBook.com
______________________
Posted in Money, Personal Financial Management, Whole Life Insurance, You BE the "Bank" | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Announcement and A Request For Help…
April 3, 2008 | Author Dr Agon Fly
This blog has been operational for about three months. It has welcomed almost 3,000 visitors who have read one or more of the 160+ posts that have appeared on the screen during that period.
Thanks to all that have come to visit. Thanks to the many who have bought the amazingly groundbreaking e-book.
On May 1st the paperback Money for Life…in good times and bad (sorry about the fuzzy cover image) will be available on the blog and from the author at www.YouBeTheBank.com
If you have found value and perhaps a little entertainment here, tell a friend or two; ask them to visit and take advantage of the special offer made on April the 1st…see below.
SPECIAL OFFER! –> The paperback version of Money for Life…in good times and bad – How to Thrive in the 21st Century will be released on May 1st, 2008. Everyone who buys the e-book version before May 1st will also receive an autographed copy of the paperback when it is release. No special codes are needed. Don’t be an April fool; make the purchase before April 30th. Shipping and handling charges will still apply. –> www.TheMoneyForLifeBook.com
Posted in Money | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Holding Tight to Money Myths…
April 2, 2008 | Author Dr Agon Fly
-
Here lies the body of William Jay
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He died maintaining his right of way –
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He was right, dead right as he sped along,
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But he’s just as dead as if he were wrong. Boston Transcript, date unknown
Kate and Ernie followed all of the financial rules that the media and their advisors gave them; max out the 401(k)’s, keep a large mortgage on the house and invest the equity elsewhere, three to six months emergency money is enough, the “market” is reliable, buy term insurance. Then, life delivered a knock out blow. First Ernie lost his job to a plant relocation and a month later Kate got laid off after a merger. OK, they had 6 months of expenses saved up and their severance and 401(k)’s were there if they needed them.
After a couple of months of no work and no income Kate was diagnosed with teminal cancer. Over the next year most of the assets that the couple had acquired went to treatments that were not covered by their insurance. They cashed in the investments that they bought with the equity in their home, got behind on the mortgage, lost the cars, spent the emergency money, dipped into the 401(k)’s and ran the credit cards to the limit. Kate died at the age of 29 and Ernie was broke and filed bankruptcy at the age of 30 – the term insurance was the first thing they dropped to control their spending when they first got laid off.
Blindly following rules about money is just as foolish as following the “rules of the road” when doing so puts you at risk. What if Kate and Ernie had chosen to think through their decisions about money instead of just doing what conventional wisdom dictated. What if they focused their energy on building a foundation of money that was entirely under their control and that supported the Four Pillars that are the framework of every successful personal economy.
I can’t give all the details in a blog post, but in summary, if they had paid their mortgage down over the seven years that they had it and even reduced it with the few bonuses and gifts they received, they would have had access to almost three years of living expenses with an equity line of credit. If they had put some of the money that they were contributing to their 401(k)’s into cash value life insurance they would have had an additional two years of living expenses and, more importantly, when Kate was diagnosed with cancer the policy’s waiver of premium benefit would have taken over her payments; when she died Ernie would have recieve a large tax free death benefit and repaid all of the money he had borrowed and recovered most of what he liquidated.
Money for Life can change the story of your life…in good times and bad. See yesterdays post for a great offer and go to www.TheMoneyForLifeBook.com to take advantage.
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Posted in Money, Personal Financial Management, The Four Pillars, You BE the "Bank" | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
April Fools and Their Money…
April 1, 2008 | Author Dr Agon Fly
“After all, tomorrow is another day!” Gone With the Wind, 1939
For some folks, every day is April Fools Day.
Don and Mary went to the auto show intending to learn about hybrid cars and SUV’s. They planned to buy a vehicle when the new 2009 model year created the opportunity to buy a low mileage 2008. They hoped that would help them keep their budget for both payments and fuel under control.
They left the auto show with a gas guzzling 2008 luxury SUV that they bought on a whim because it was being sold for less than the dealer’s cost. They thought that they could figure it all out in the days ahead; after all, tomorrow…
Every day American’s are overwhelmed with “opportunities” to buy the latest and greatest products – everything from the miracle sponge being hawked in the 60 second infomercial to the house with the price reduced to $1,000,000. Every day some American’s are fooled by the cacophony of claims in consumer products advertising and the oft repeated but rarely accurate promises of financial success chanted by Wall Street’s merchants of misinformation.
Over 250 years ago- almost 100,000 tomorrows - Benjamin Franklin said “Many a man thinks he is buying pleasure, when he is really selling himself to it.” Every day creates new April fools of people who believe they can buy their way to wealth and well being.
Don’t let it happen to you. Learn how to manage the money that flows through your life. Don and Mary woke up the tomorrow after their folly, exercised their right of recision on the purchase of the SUV and breathed a sigh of relief. “After all, tomorrow is another day!” doesn’t have to be a fatalistic mantra. It can also mean that you can change your mind about money matters and change your behavior in positive ways.
SPECIAL OFFER! –> The paperback version of Money for Life…in good times and bad – How to Thrive in the 21st Century will be released on May 1st, 2008. Everyone who buys the e-book version before May 1st will also receive an autographed copy of the paperback when it is release. No special codes are needed. Don’t be an April fool; make the purchase before April 30th. Shipping and handling charges will still apply. –> www.TheMoneyForLifeBook.com
_____________________________
Posted in Debt, Money, Movie Quotes, Personal Financial Management | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Cobbled Together Financial Plans…
March 31, 2008 | Author Dr Agon Fly
“Houston, we have a problem.” Apollo 13, 1995
Marion and John are faced with dire conditions;
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~ the stock market is in turmoil and their portfolio is losing value
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~ the housing market is roiling like a turbulent sea during a hurricane just when they are planning to move to a smaller place
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~ the dollar is depreciating and their income is not increasing – at least not as rapidly
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~ fuel prices are rising – the $15 fill-up of three years ago is now $45
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~ the cost of almost everything they buy that depends on fuel for manufacture and delivery is rising too – food, clothing, automobiles, electricity for lighting and air conditioning, and gas for heat, and more.
Those who have wealth great enough to make them celebrities can weather the financial storms that are raging just because they have so much. The pundits that pander to every fashionable financial fad can talk to no end about how their latest strategy will solve your problem, and perhaps that’s what some folks need. Those who follow the practices of Money for Life…in good times and bad are also secure during financial upheavals such as these.
But we Americans have a problem that is systemic. Our financial Apollo 13 has been hit by some economic debris that was engineered by Wall Street’s merchants of misinformation and their financial snake oil sales reps who chant the shibboleths they rely on to keep America dazed and confused. We can, of course, keep on keepin’ on, cobble together a solution to today’s problem, await the next disaster and continue to rely on a personal economy that is engineered by others for others.
The Apollo 13 crew and the NASA engineers had no choice and performed astonishingly well when the Apollo space vehicle was damaged. They also dealt with the issues surrounding the problem to assure it didn’t happen again. Wall Street won’t do that for you. Individuals do not have a NASA to look into the future on their behalf. While NASA is committed to the safety and success of its astronauts, Wall Street is committed to its own success and no other. No one on Wall Street is going to devise a solution for you.
At the cost of being boringly repetitive, if you manage just four aspects of your finances properly, you will be able to handle almost any money challenge the you face. The foundation of every successful personal economy is money that you control – money that is in your “banks” not Wall Street’s. That means the money cannot be in an investment that Wall Street wants you to buy; and remember, when you buy anything – they call it investing - someone else gets some of the money you spend. They are not paid in kind.
With your “banks” as a foundation, you have to pay attention to only four goals – I call them the Four Pillars of your personal economy:
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Freedom from debt-to-others
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Income you don’t have to work for and you can’t outlive
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Ready money to deal with the surprisingly unsurprising surprises life deals out every day
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A legacy of your wisdom and wealth to pay forward to those you care about
Wouldn’t you feel better if those four goals were in reach? They are and you can learn how to achieve them with the guidance found in Money for Life –> www.TheMoneyForLifeBook.com
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Posted in Money, Movie Quotes, Personal Financial Management, The Four Pillars | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
The Most Versatile Tool In Your Money Tool-Belt……
March 30, 2008 | Author Dr Agon Fly
Insuring Against Recession
Check your life insurance policy to ensure it’s right for today’s troubled economy.
“A whole life insurance policy is the Swiss Army knife of the insurance world.”
Beth PiskoraManaging Editor, U.S. Editorial
The Outlook, Copyright © 2008, The McGraw-Hill Companies.
“Unemployment currently stands at 5%, but David Wyss, the chief economist for Standard & Poor’s, sees it creepingup to 5.5% by the end of this year. That means up to 750,000 Americans could potentially lose their jobs in 2008.
“Are you prepared — financially, if not emotionally — if you lose your job? If not, you might, with a financial advisor, consider buying more insurance. Even if you are retired, or feel very strongly that your income stream is safe, there are some stable long-term savings options in many insurance plans that you might want to consider in these volatile times in the stock and bond markets.
“While term life insurance is overall a more popular product, whole life insurance is enjoying a resurgence of demand. To understand if whole life is right for you, it’s best to know a lot about the product.
“A whole life policy can act as a buffer against estate taxes and probate costs, and provides a death benefit along with a living cash benefit, a feature unique to whole life. In addition, a whole life policy allows someone at the time of retirement to remain insured while spending the other assets they’ve accumulated or pursuing a more aggressive investment strategy for those assets.
“A whole life insurance policy is the Swiss Army knife of the insurance world,”… read the rest here –> http://themoneyforlifebook.wordpress.com/why-whole-life-insurance-works-in-tough-times/
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Money For Life…in good times and bad – How to Thrive in the 21st Century addresses the issues raised in this article in detail.
buy it today at –> www.TheMoneyForLifeBook.com
_________________________________________________
Posted in Money, Personal Financial Management, Retirement, Taxes, Whole Life Insurance, You BE the "Bank" | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Retirement Money-Shrinking Investments…
March 29, 2008 | Author Dr Agon Fly
“Life is a banquet, and most poor suckers are starving to death.” Auntie Mame, 1958
Ed and Jean worked hard for almost fifty years, lived a frugal but fulfilling life, and raise eight good children. They didn’t sacrifice their financial life to the Debt Paradigm. They owned their home, had pensions from their work, both received social security and they kept a “rainy day” account that added up to over $100,000.
As they enter what should be the easy and relaxed life of the comfortably retired, a financial snake oil sales rep from one of the merchants of misinformation suggested that the equity in their home was not producing anything for them and that they should “harvest” that equity and invest it – and, of course, invest it with the sales rep making the pitch.
“It just makes sense.” the rep said, repeating the mantra of the Behemoths, “You can get an interest only mortgage on your home at 6% (I can get that for you and get paid to do so), invest the money (with me, and I’ll get paid again) at 8% (not guaranteed but, hey, the “market” always rises), get a tax deduction (if the dolts in Congress don’t remove it and/or raise taxes on your gain) and you’ll be doing what the really rich people do all the time.”
BUNK!
Rich people pay their debts and use the cash flow to save more money. When they invest they invest only small amounts of their savings. They do not invest from income – not even into a 401(k) or equivalent. If tax laws change or the market tanks or the real estate bubble bursts (as it just has and still is – the worst is yet to come) their money is safe, their income is safe, their homes are safe, their investments are protected with prudence and they are living the banquet.
The “poor suckers” who are “starving to death” are the ones who believed the sales rep and followed his or her advice. Here’s a rule of thumb that has proven accurate for as long as people have been investing and saving; if a sales rep shows you a plan that requires you to reorganize a successful personal economy because by doing so you would be doing what the truly wealthy do, run to the door without looking back. You are about to be scammed.
What the truly successful do – and have done for millennia – is save first. They create their own security in four specific areas:
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they are free from debt-to-others
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they have income they don’t have to work for and can’t outlive
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they have money readily available to deal with life’s surprisingly unsurprising surprises
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they have created a legacy of wisdom and wealth to pass on to those they care about
The process they use to achieve these very achievable goals is clearly described in Money for Life…in good times and bad – How to Thrive in the 21st Century. The products and information that are available today, combined with the wisdom derived from the past, flow together in proper measure in this book. You can easily apply them to your situation.
Don’t be one of the “poor suckers.” Your life can be a banquet –> www.TheMoneyForLifeBook.com
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Posted in Money, Movie Quotes, Personal Financial Management, Retirement | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Twins, Taxes, Money and “Banks”…
March 28, 2008 | Author Dr Agon Fly
“Mama always said life was like a box of chocolates. You never know what you’re gonna get.” Forrest Gump, 1994
Jeff and Beth are 40 and have a plan. They manage their money wisely, could be the poster kids for prudent mortgage management, steer clear of credit card and consumer debt, promptly pay off any debt they incur out of necessity, put about $21,000 each year into their individual and their children’s “banks” and now, suddenly, are about to become the proud parents of twins.
“You never know what you’re gonna get.” and twins are going to force some changes to the “plan.” The first change is a significant reduction of income because Beth plans to semi-retire from her well paid corporate position to care for the newborns, and Jeff’s burgeoning university teaching career is just burgeoning but not yet in full bloom. This change creates others; funding for the “banks” has to be reduced, relocation is assured, the family home has to be sold in a down market, and, on the up side, two more tax deductions.
Since the “banks” are an essential piece of Jeff’s and Beth’s plan for the future, that’s the piece of chocolate we’ll address in this post. Jeff’s whole life policy is just entering its third year. Almost all of the premium that is paid into the policy this year is credited to the cash value account. This allows Jeff and Beth to pay the annual premium of $13,200 using a loan from Beth’s 401(k).
Once the premium has been paid using the 401(k) loan and credited to the cash value account in the policy, Jeff and Beth can immediately borrow it back from the policy and pay off the 401(k) loan. This leaves them with a debt to themselves that they can repay on their own schedule and with the money they have available.
In fact, they could borrow the premium from the policy every year for the next ten years and not make any payments out of their income and the policy would remain in force and retain some cash value. Jeff and Beth could, of course, pay the interest to themselves and assure that the policy would remain in force for decades and grow in value.
That won’t happen. Jeff and Beth will bite into another piece of chocolate and discover another surprisingly unsurprising surprise that will change their lives and their plans; they could win the lotto or lose an investment. The constant financial fact that allows them to go forward with confidence is the power and flexibility inherent in their personal economy because of their “banking” system.
“You never know what you’re gonna get.” but you can make sure you can handle it. Discover how –> www.TheMoneyForLifeBook.com
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Posted in Money, Movie Quotes, Taxes, Whole Life Insurance, You BE the "Bank" | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Money Soulutions…
March 27, 2008 | Author Dr Agon Fly
“May the force be with you.” Yoda, Star Wars, 1977
NO! soul-utions is not a misspelling.
Soulutions is a word I’ve created. It describes the act or means of solving a problem (solution) based on individual awareness of personal needs and values, and the concurrent recognition of universally recognized principles (soul).
Money for Life…in good times and bad is a book that addresses money related issues and gives you tools to help you find your unique soulutions.
Yoda also said, “Try not. Do or do not, there is no try.
Posted in Money, Personal Financial Management | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
The Future of Money is the Past…
March 26, 2008 | Author Dr Agon Fly
“Elementary, my dear Watson.” The Adventures of Sherlock Holmes, 1939
Peter Bernstein is one of the elder statesmen in the world of economic thought. At age 87, his expectations and thoughts about the future have been accurate for decades. It is rewarding to find someone of his stature and experience indirectly endorsing the strategies and practices that are presented in Money for Life…in good times and bad – How to Thrive in the 21st Century. Here’s a brief excerpt form his recent letter to John Mauldin, another analytic economist that hits the nail on the head more often than not. I encourage you to read all of this letter and consider how you are going to manage your money in the future based on the thinking of these informed and insightful comments.
The Shape Of The Future
By Peter L. Bernstein
“The root of today’s problems in the financial markets and in the economy as a whole is the household sector. The point needs no elaboration, but its significance cannot be minimized. As we have argued on more than one occasion, the shrinkage in the personal savings rate is not the result of consumer profligacy, as other commentators persist in describing it. Rather, the savings rate has been suppressed by a slowdown in the growth of household incomes. The shortfall between income and outlay has been met by borrowing, and in particular by borrowing against the family real estate. Now the opportunity to borrow has shrunk dramatically, an outcome that will profoundly change the household’s spending power and spending patterns. But the impact is not just on the household. A slowdown in the growth of consumer spending has ominous implications for the entire global economy – and, along the way, the U. S. federal deficit, soon to be overburdened by spiraling benefit obligations. This predicament is not a short-run matter, unless home prices abruptly reverse themselves and head back into the stratosphere – which is hardly likely.”
Read – and re-read – the entire letter here –> http://www.investorsinsight.com/otb_va_print.aspx?EditionID=670
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www.TheMoneyForLifeBook.com addresses this issue at its core. It shows you how to thrive while others just survive or worse, descend into the dungeon of debt that never releases its prisoners without first inflicting great pain and leaving deep scars.
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Posted in Debt, Money, Movie Quotes, Personal Financial Management, What Others Say | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Money and Conventional Wisdom…
March 24, 2008 | Author Dr Agon Fly
“I’ll have what she’s having.” When Harry Met Sally, 1989
Bill and Kate are both successful executives. They are actively involved in the social life of their community, their children’s school, their church and several professional organizations. They each earn a healthy six figure income but still don’t have a substantial amount of money set aside to deal with the surprisingly unsurprising surprises of life, to pay for college for the children, to pay themselves when they retire or to leave any kind of legacy beyond debt.
Bill and Kate do, however, have what everyone else in their social circle has; a house that is far larger than they and their two children need and that requires a housekeeper to keep the many rooms they never use clean and a gardener to keep the grounds that they seldom walk manicured; two SUV’s and a luxury sedan – all leased to assure that the family will always have a new vehicle; private schools for the children, tutors to make sure they can keep up, and a nanny to watch over the tutors due to the parents busy schedule; membership in a country club that they are rarely able to use; annual vacations that cost more than most people earn; and on, and on, and on…
Bill and Kate have an investment program too. Like their possessions, however, it is cobbled together based on casual conversations with their co-workers, friends and family, the unabashedly self interested advice of their broker and their own insights based on the casual and occasional reading of the Wall Street Journal or spending an hour watching a TV shill touting his or her flavor-of-the-day investment strategy. Their ”I’ll have what she’s having.” portfolio is not performing well – as you might guess.
Many Americans in all walks of life and at all income levels make the mistake of following the advice of people they know; people who themselves know nothing more than they do - the blind leading the blind. This is what I call following conventional wisdom – doing what others are doing and repeating what others have said as if it were the gospel just because that’s what they are doing and saying.
There are strategies and tactics that work. If you embrace them, you will create a bright financial future for yourself that promises you an income you don’t have to work for and you cannot outlive, freedom from debt-to-others, ready money to deal with life’s surprises and a legacy of both wisdom and wealth to pass on to those you care about.
Bill and Kate gave up their foolishness, and within two years they were able to achieve all four of these goals.
You can too! –> www.TheMoneyForLifeBook.com
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Posted in Money, Movie Quotes | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | 1 Comment »
Financial Advisor or Money Monger…
March 23, 2008 | Author Dr Agon Fly
“You can’t handle the truth!” A Few Good Men, 1992
Peter has spent the past 20 years as an insurance agent, annuity salesman, investment advisor, college planner, real estate investor, mortgage planner, advisor to seniors, and all around financial planner. Every hot new product or marketing strategy that comes down the road catches his interest and attention. He learns about it, jumps in with both feet, makes a lot of sales and money, then moves on to the next thing – whatever that might be.
Peter doesn’t have 20 years experience. He has 18 months experience 6 or 7 times. He’s not been in one business for 20 years, he’s been a serial salesman dabbling in half a dozen businesses for brief periods.
Peter, like thousands of other financial “professionals” can’t handle the truth. The money business requires dedication, persistence and consistency. It demands that the advice and guidance that an advisor gives to his or her clients is well informed and well founded. The business of the financial guide is to know a great deal more than the people being guided; not just more about one product or program, but more about everything that has to do with money and its place in the personal economies of clients.
Money for Life…in good times and bad – How to Thrive in the 21st Century contains money wisdom gleaned from the practices, writings, teachings and mentoring of truly professional financial advisors and guides dating from Benjamin Franklin and the earliest days of America through today’s wealth of information and experience in print, on the radio, on television and on the internet.
The strength of this wisdom is its consistency. There are always new financial strategies and tactics aimed at generating income for others. The merchants of misinformation and their minions, the financial snake oil sales reps, use their energy to create programs designed to put your money in their pockets under the guise of a “plan.”
Some of these plans have merit, but, like Peter’s forays into various markets, they are often shallow and short lived. However, the remnants of these plans often find their way into the mainstream. Advisors who study them as one of many tools and take a holistic approach to this process might incorporate them into the unique personal economies of the few folks that can truly benefit from them.
Discover the secrets that the money mongers never do and find an advisor that understands and follows the practices that the wise have followed for centuries and millennia –> www.TheMoneyForLifeBook.com
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Posted in Money, Movie Quotes, Personal Financial Management | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Mortgage Myths and Money…
March 23, 2008 | Author Dr Agon Fly
“There’s no place like home.” The Wizard of Oz, 1939
Gino and Bernice managed their money carefully, saved a down payment and bought their home after a few years of marriage and the birth of their son. Gino’s income as a unionized cement worker depended on the weather and the good will of his employers but, because he was skilled and reliable, he was able to work regularly.
Within fifteen years Gino and Bernice paid off the mortgage – early. The money that they spent on mortgage payments was then redirected into their “banks”. When, many years later at age 63 , Bernice was diagnosed with pancreatic cancer, the family was able to cover her out of pocket medical costs and provide Gino with support services as Bernice languished for 18 months and died peacefully in her home on her 65th birthday.
A few years after Bernice died, Gino’s 65+ years of heavy smoking and drinking wore out his heart and lungs. While he was on oxygen for emphyzema he had a heart attack and survived open heart surgery. He lived for several more years as a semi-invalid and his son and daughter-in-law provided him with support around the house and in the yard.
When Gino finally died, his son inherited the house free and clear, plus thousands of dollars from Gino’s “banks” and savings accounts. The son, Pat, still rents the house. Within a few years Pat was able to use the inheritance and rental money to help pay off his own mortgage well before its final payment due date. The rent from the family home and the monthly mortgage payment, which he no longer has to pay, go into “banks” for himself, his wife, and his three children.
When Pat is 67 and ready to retire, he will have two properties, both paid for; one producing income and the other costing only taxes, insurance and maintenance. His three children will have college educations with no college loans. He will have a stable retirement income from his and his wife’s retirement plans from work, social security, income from the rental, and substantial income from his savings plans, with much of it tax free from his “banks”. Their retirement income, by the way, will exceed their working career income.
There is no such thing as “good debt” for an individual or family. There are occasions and situations where debt is useful or necessary. That doesn’t make the debt good. A mortgage is a debt; sometimes useful and often necessary, but still a debt.
Those who would have you believe that mortgaging your home to the hilt so you can “invest” the equity with them are selling a dream that that will put money in their pockets and could easily become a nightmare for you and your family. They want to convince you that this strategy is followed by the “wealthy” and if you just do the tricks they teach, you too will be wealthy.
BUNK!
Measure such “plans” against this template before you buy into them:
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Does their plan have guarantees?
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Are the guarantees strong enough to support the end result that is being illustrated?
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Could you get results that were substantially better than the guarantees without buying into the plan being sold?
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Are the non-guaranteed elements of the plan based on both back-testing and actual performance of the companies and products you are being asked to purchase?
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If non-guaranteed results are based only on back-testing because the products and/or companies have only been around for a few years, does the back-testing cover at least 100 years to include the depressions of 1907 and 1929 and the doldrums of the late 1940′s and early 1950′s or does it go back only far enough to incorporate the longest and strongest bull market in the history of markets?
Your financial life can be like that of Gino, Bernice and Pat. They did not have to take great risks or buy into esoteric schemes to succeed with the money that passed through their lives. They employed simple, treid, tested and proven strategies that allowed them to live comfortabley without relying on debt. You can too. –> www.TheMoneyForLifeBook.com
Posted in Debt, Money, Movie Quotes, Retirement | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Take Control of the Money That Flows Through Your Life…
March 22, 2008 | Author Dr Agon Fly
“They call me Mister Tibbs.” In the Heat of the Night, 1967
Jack and Theresa relied on the same financial advisor for over ten years. When Jack got a new job in a new city on the other side of the country that relationship became untenable so the couple went looking for a new advisor. After several interviews Jack and Teresa concluded that the advisors they met in their new city did not recognize or understand what their friend and advisor “back home” had taught them. In fact, every one of the advisors they interviewed told them that building their financial foundation using cash value whole life insurance was not just wrong but went against everything the advisor had been taught.
One advisor suggested that Jack and Theresa should replace their cash value policies with term insurance and invest the money they had accumulated in the stocks he recommended; ENRON, Qwest and MCI.
Another advisor wanted Jack and Theresa to exchange their whole life insurance policies for variable universal life insurance policies because she could illustrate greater future value with that type of insurance plan. She did not, of course, make it entirely clear that these policies had no guarantees and that they could lose all of their money with this approach.
A third advisor encouraged Jack and Theresa to refinance their home at 95% and “harvest” the equity from their home and the cash from their whole life insurance policies and put all of that money into a new kind of product called equity indexed life insurance. The premise was that the new product would earn more than the interest charged in the mortgage and the lost guarantees and dividends from their whole life contract. Again, there was no discussion of the fact that taking such action put their real property at greater risk and did not replace the guarantees that were present in their whole life policies.
When Police Chief Gillespie challenged Virgil Tibbs’ self image and deeply held beliefs, the detective defended himself and his beliefs with a simple emphatic statement. Every day we face the same kind of challenge to our common sense about how we handle our money. An onslaught of advertising and misinformation tells us that our conservative financial values are foolish or simplistic or contrary to the conventional wisdom – which is no wisdom at all.
There are many reasonable and sensible ways to handle your money. Universal life insurance, indexed life insurance, investments and home equity can be important pieces of the puzzle that is unique to your situation.
Any approach that suggests, however, that you can build wealth without establishing a foundation of money that you control, is misleading at best and illegal at worst. Suggesting that you can behave the same as people who have already accumulated great wealth, denies the reality that those who have great wealth behaved differently while accumulating their wealth than they do after they have it.
Every reasonable financial “plan” should aim at
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eliminating debt-to-others
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guaranteeing you a secure income
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making sure you have ready money to deal with the ordinary and the extraordinary events that make up your life, and
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creating a legacy of your wisdom and wealth.
Once these goals have been met you can consider the schemes of the merchants of misinformation and the financial snake oil sales reps who want your money in their pockets.
by Jeffrey Reeves MA, www.youBEthebank.com
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Money Talkers Talking Down to You…
March 21, 2008 | Author Dr Agon Fly
“What we’ve got here is a failure to communicate.” Cool Hand Luke, 1967
Reba is an attorney; a very brilliant, busy and successful attorney. Her practice keeps her busy 60 to 80 hours a week and her long term commitment to her favorite charity devours additional hours each month. Reba, single and childless herself, also finds time to volunteer as a tutor at the high school that is just around the corner from her home.
Busy executives, sales reps, attorneys, accountants, consultants and others in professional practices, including Reba, earn a great deal of money. They rely on the adviced and guidance of financial and investment professionals (and there is a great deal of difference between these two vocations) if for no other reason than the lack of time available to study how best to handle the money that flows into and through their lives. But, Reba, like many others in her position find the advice they are receiving is lacking in both effectiveness and wisdom.
Reba’s advisor presented himself as an investment professional with financial planning credentials. Credentials did not, however, convert into performance. The advisor’s suggestions were perfunctory and superficial; they had no apparent research behind them, other than the recommendation of the Behemoth for which he worked; they were presented hastily and Reba’s questions and concerns were treated with impatience – almost disdain. In addition, the results that the advisor’s recommendations produced were no better than Reba would have expected from a good savings program. Add poor results to the impersonal and arrogant character of the advisor’s behavior, and it is understandable that Reba wants a change.
The “failure to communicate” lies with the advisor. Like the “boss” in Cool Hand Luke, the advisor’s idea of communicating is that his clients should listen to him and do as he says; no questions, comments or concerns are permitted to enter the conversation unless they support his position. “Yes, Boss.” is the only legitimate response. This problem arises frequently. Most advisors do not take an holistic approach to their profession. They rely on templates and formulas that the Behemoths they represent force feed them.
The only way you can guarantee yourself competent advice is to have your own financial house in order before engaging an advisor. That means you need to adopt tested and proven practices that are objective in form and subject to your wants and needs. Then, you can rely on these practices to manage and measure the money that flows through your life .
Money for Life provides a model based on building a solid money foundation – a “bank” – that supports the Four Pillars that are essential to any successful financial strategy. You owe it to yourself to consider this approach. Those who have done so have more money and greater peace of mind than those who put every penny at risk in an investment program designed by a Behemoth for the benefit of the Behemoth.
www.TheMoneyForLifeBook.com describes the problems we all face as we navigate the 21st century. Money for Life articulates a solution that allows you to have everything you need and anything you want without incurring debt or risking your money in schemes disguised as “your plan” but devised by and for the benefit of others. Your financial future will benefit immensely from the few dollars you invest to buy Money for Life and the few hours you’ll spend reading it.
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A Break From Serious Money Issues?
March 20, 2008 | Author Dr Agon Fly
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I frequently blog about money;
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A topic that’s not very funny.
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So, try as I might,
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I can not make light
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Of dollar, of dime, or of penny.
One of the rules about money that will keep you in synch with your financial goals is this:
“There is no such thing as ‘only’ when it comes to money.” Dr Agon Fly
It’s only five dollars (or ten, or ten thousand)…is nothing more than a rationalization. Better to admit that you want what you want, then find a reasonable way to afford it. And remember, affording a purchase does not mean you can manipulate your cash flow to squeeze out the monthly payments; it means you have the cash to make the purchase, and that you are willing to part with that cash to have what it will buy. Even if you have the cash, recall what Ben Franklin wrote in 1733, “Beware of little expenses; ‘A small leak will sink a great ship.’” Stop and think about it and you may decide to fore go the new coat, new car, new furniture or chocolate malt.
The same holds true for what you save. How many folks have rationalized away the opportunity to save a dollar or two because “it’s only a dollar.” Put your pocket change in a jar at the end of every day and you’ll find hundreds of dollars in your jar at the end of a year. Put that money into a simple savings account every year and your surprise will be thousands of tax free dollars when you retire. One client couple of mine decided to brew their own coffee in lieu of a daily trip to Starbucks and are putting over $4000 a year into their cash value whole life insurance “bank” as a result.
There are secrets – simple practices that America has lost sight of in the last 30 years – that can make you financially comfortable today and into your 30 or 40 year retirement. You can learn these secrets and take control of the money that flows through your life –> www.TheMoneyForLifeBook.com
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Posted in Money, Personal Financial Management, Retirement | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Do You Have a Money Problem?
March 19, 2008 | Author Dr Agon Fly
Steve Goodier writes an almost daily newsletter that has inspired and motivated me for several years. You can find it and sign up your self at www.LifeSupportSystem.com
Steve wrote an item today that goes to the heart of Money for Life…
GOT A PROBLEM?
Do you have a problem? Does it seem like it just won’t go away? Perhaps a little more creativity is all that is needed. Let me explain.Thomas Edison has been credited with inventing the first half of the twentieth century. And certainly one of his greatest inventions was the incandescent electric light bulb. But Edison takes no credit for making the light bulb available to the world. He was simply an inventor. Edison’s bulb did not burn for long; it gave off little light and it was too expensive.
A man named William David Coolidge spent seven years improving the light bulb to make it more practical. Largely because of his work, electric light eventually came into common use.When Coolidge finally succeeded in his efforts, he was questioned about how he was able to make tungsten work. He said, “It was because I was not a metallurgist. Had I been a metallurgist, I would have known that the task was impossible.”
Henry Ford, too, built his success largely on his ability to “think outside the box.” He used to say that he was looking to employ a lot of people “who have an infinite capacity to not know what can’t be done.” Sometimes, unconventional thinking and a belief that anything is possible are required to solve problems.
You may not be setting out to build a huge company or market a new invention, but you still face difficult problems that beg for creativity. Perhaps you are worried about financing an education. Or you are caring for a loved one with a long-term illness. Or maybe you simply cannot seem to get along with that difficult person you work alongside everyday. These problems, and countless others, just don’t seem to go away.
Most of us struggle with similar “impossible” situations. If your problem seems impossible, then your usual thinking is probably not working. How can you look at your situation differently? Who can help you consider other solutions and will never tell you that it can’t be done? And most important, what would you do if you believed that anything were possible?
Anything! You may not have succeeded yet because you have become discouraged searching for a solution to your problem. Or perhaps you are not convinced that an answer can be found, somehow…somewhere. But a creative and wonderful solution might be just ahead. Look in a different direction. Find it! You can.if you believe it is there and if you believe it can be found.
Today, what would happen if you approached your problem in a new way?
Do you want to find out?
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If it’s a money problem remember that the solution might just be $29.95 away –> www.TheMoneyForLifeBook.com
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Roadmap to Financial Failure or Path to Success…Epilogue
March 19, 2008 | Author Dr Agon Fly
“Toto, I’ve got a feeling we’re not in Kansas anymore.” - The Wizard of Oz”, 1939
George and “Fitzie” were financial failures at age 53. They, like the millions of other Americans who struggle unsuccessfully to gain control of their financial lives, followed the practices of Wizards like Suz Orman and Dave Ramsey – pundits, who make their money by regurgitating the BS of the Behemoths, by mouthing the mantras of the merchants of misinformation and chanting the siren songs of their snake oil sales reps. How’s America doing following this advice?
What if George and “Fitzie” had followed a different path? Consider this:
George and “Fitzie” were high school sweethearts and married the summer after their 1973 graduation. They both were working full time; George at the steel service center where he works today and “Fitzie” at a local mall in a major department store. They both earned about $10 an hour, had benefits and lived frugally – as they had seen their parents live. They saved 10% of their income for a down payment on a home and had plenty of money left for their needs and wants.
Had George and “Fitzie” followed the Money for Life practices and saved that 10% of their original base income of about $40,000 per year – $344.00 per month – in a cash value whole life insurance policy, and kept their savings rate at $344 per month even as their incomes increased;
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~ they could have used the policy as a “bank” and borrowed from the cash values to pay for the things they needed and wanted
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~ repaid themselves, instead of giving their money away to credit cards, banks and big box stores.
Had they done that;
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~ at age 53 their home would have been paid for
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~ at age 53 they would be debt free
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~ at age 53 they would have $436,000 in cash value in their policies
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~ at age 53 they would have over $1,200,000 of death benefit
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~ at age 67 they would have an after tax retirement income of over $50,000 each year
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~ at age 67 their retirement income would grow year after year
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~ at age 67 their retirement death benefit – their legacy – would be over $2,500,000 and growing.
Compare that to their actual ”in debt up to their eyeballs” situation described in yesterday’s blog that is the fate of so many Americans. The fantasy land of financial advice that is served up by pundits during infomercials and in books made popular by celebrity instead of substance have brought America to the dangerous precipice where it stands today.
Don’t blame the media that supports the merchants of misinformation and their minions. These are the folks who buy the commercial air time and pay the media’s bills. Don’t blame the publishers who make millions selling books with the faces of the famous financial fops on the cover. It’s how they make a buck. The problem lies in the failure of those of us who know that there is a better way. It’s not your fault that we haven’t been effective telling the truth we know, and debunking the lies we recognize.
Money for Life…in good times and bad shows you How to Thrive in the 21st Century using practices that have been tried, tested and proven for over 150 years. If you aren’t making the kind of financial progress you had expected or if you find yourself giving too much of your money away to banks, credit card companies, auto finance companies, the big box stores, etc. you owe it to yourself to find a better way. Spend the $29.95 to buy Money for Life and your financial life – present and future – will improve. –> www.TheMoneyForLifeBook.com
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Footnote: The financial projections used above are based partly on dividends being paid by the insurance company issuing the policy. In this case, the insurance company has paid dividends every year since its inception over 150 years ago – even during the Great Depression .
Posted in Money, Movie Quotes | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | 1 Comment »
Roadmap to Financial Failure or Path to Success…
March 18, 2008 | Author Dr Agon Fly
“You don’t understand! I coulda had class. I coulda been a contender. I could’ve been somebody, instead of a bum, which is what I am.” On the Waterfront, 1954
George is 53 years old. His home is mortgaged to the hilt with first and second mortgages. The homes in his neighborhood are losing value because of the high number of foreclosures. Two of the family’s three cars are financed. The new kitchen appliances came from a big box store “Same as cash. No payments or interest for six months.” His True Net Worth is in the tank because he is upside down on everything.
George has an active 401(k) account at work into which he contributes 3% of his $43,000 salary in order to get the employer match. The 401(k) is worth about $47,000 – down from a high of $62,000. His wife, “Fitzie,” has just over $13,000 in two inactive IRA accounts – down from $16,500. She is currently unemployed so she can stay home with the four children who attend attend public school. They have $7,500 in savings. The children are looking forward to college but they will have to rely on loans, grants and scholarships to pay their way.
Add up the value of this family’s 35 years of work and you have an all too common snapshot of an American family. George and “Fitzie” followed the raodmap drawn by the Behemoths and ended up in the swamp of financial failure. They own very little. Everything they have is covered in debt. What they do own is of little value; a used car, furniture, retirement accounts that are inaccessible without significant loss to penalties and taxes, a modicum of savings that would disappear in a New York minute if George lost his job or “Fitzie” was diagnosed with cancer or one of the children got into trouble with drugs, alcohol or worse.
It’s not too late, however, for George and “Fitzie” to escape the Financial Swamp and teach their children how to avoid it too. Money for Life describes a path that leads to freedom from debt-to-others, passive income for retirement, ready money for emergencies and the opportunity to pass on a legacy of wisdom and wealth to those you care about – regardless of where you start from or how old you are. It is not a get rich quick scheme or a multi-level marketing program. It is 150 year old a tried, tested and proven approach to handling money.
Start by learning your True Net Worth with the FREE report Why Budgets Don’t Work. You can get the report at www.TheMoneyforLifeBook.com
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Posted in Debt, Money, Movie Quotes, Personal Financial Management | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
A Money Offer You Can’t Refuse…
March 17, 2008 | Author Dr Agon Fly
“I’m going to make him an offer he can’t refuse.” The Godfather, 1972
Edward held an MBA in finance and was a very successful analyst for a major utility. His wife, Sally, held an MA in education and planned to return to her teaching career when all three of the children reached school age. Ed’s success in business and the family’s frugal lifestyle allowed Edward and Sally to invest liberally with their discretionary income. Their advisor suggested a very aggressive growth path for them in 2000 on the premise that the market conditions would allow them to profit from its volatility. (Gee, that almost sounds feasible – although I’m not at all sure that it means anything.)
Since the advisor’s advice in the ’90s had served them well they bought into his aggressive program. (Of course all but the unluckiest advisors looked good in the ’90s.) By March of 2002 Ed and Sally’s portfolio had shrunk from just over $200,000 to $79,000 due to the “market.” Worse, Ed had been laid off and the family was without a steady income. Thankfully, Sally was able to find a substitute teaching job to tide them over until Ed finally found a position comparable to the one he’d lost. They still lost over 60% of the value they had created in their portfolio.
The merchants of misinformation and their financial snake oil sales reps don’t use the same tactics as Don Corleone. They do, however, use illustrations and “hypothetical” to project a picture of the future on the screen of your consciousness. The picture they project is bright and very positive. It is presented in a professional format. It gives you confidence that the advisor who is weaving the tale of your future security actually knows what’s going to happen – and when. They are making you an offer you can’t refuse.
Reality is otherwise. Financial product sales reps do not have the capability – as Don Corleone did - to back up the offers they make. In fact, once you’ve accepted the offer they present to you, they are off the hook relative to future performance. Their offers are more akin to some of the propaganda that has slimed out of Hollywood disguised as entertainment or documentaries in recent years – looks good but is slanted to support a position and omits significant facts and possibilities.
Most investment economists and serious market analysts (folks who do not sell anything but study the “hypothetical” in great detail) suggest that the projection of future growth that exceeds 4% for any investment is misleading and overly aggressive. Even 1% cannot be guaranteed in the exchange markets, in real estate, in equity indexed products or in any other risk based investment. The problem is that the “markets” never progress in a straight line – nor does your life – just ask Edward and Sally.
You can control the money that flows through your life in a way that allows you to save and invest more securely – where you are in charge of every aspect of your personal economy. Get started with the FREE report Why Budgets Don’t Work –> www.TheMoneyForLifeBook.com
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Posted in Money, Movie Quotes, Personal Financial Management | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | 1 Comment »
Money and Divorce…
March 16, 2008 | Author Dr Agon Fly
“Frankly, my dear, I don’t give a damn.” Gone With The Wind , 1939
Life is full of upheavals resulting from relationships.
When Steve’s and Beth’s marriage broke up, their two young children created a major financial concern for both parents. Beth has defacto custody and has to find new ways to balance her finances, her work schedule, the children’s school and activity schedules as well as coordinating visitation schedules with Steve. Beth and Steve both have to find ways to establish and maintain relationships with old family friends and make new ones as well.
Steve, as the non-custodial parent, encounters similar problems and, in addition, must adjust his budget to accommodate court ordered child support payments. Both Steve and Beth have to individually address their food, housing, transportation, and entertainment expenses that were formerly a family affair. The demands of out of town in-laws for visitation of the children has become a financial drain also.
A powerful tool in Steve’s and Beth’s financial arsenals is cash value whole life insurance. Their family practice attorneys asked the court to order both Steve and Beth to purchase cash value whole life policies on themselves and on their children as part of the child support package.
The advantage of this approach is that these policies protect the children if Beth or Steve dies prematurely and, more importantly, provide ready money for unpredicted family needs and the future educational and support needs of the children. Because the cash values in their whole life policies can be repeatedly borrowed and repaid, the policies become “banks” that grow consistently. They allow Steve and Beth to finance education, unplanned large purchases and emergency needs for the children much more economically than is possible with credit cards, home equity loans or other commercial loans.
There are, of course, technical issues that must be managed with policies used for this application. These require the ongoing advice and guidance of a Money for Life Guide.
Learn more and own more –> www.TheMoneyForLifeBook.com
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Posted in Money, Movie Quotes, Whole Life Insurance | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Famous Movie Quotes and Money…
March 16, 2008 | Author Dr Agon Fly
“Show me the money!” Jerry McGuire, 1996
Much of the advertising and promotion of financial products and services by the Behemoths focuses on non-money issues: dreams, plans, transaction costs, tracking tools, advisor relationships – everything except money. The reality of your financial life, however, is affected by money, first and foremost. Stocks, bonds, mutual funds, real estate, and any other investments are not money; you can’t spend them and you can lose some or all of the money you tie up in them.
You might wonder why the Behemoths spend millions of dollars on advertising what they want and don’t focus their advertising and promotions on your money. Well, it’s because they want you to give your money to them. They want you to focus on what’s in their best interest not on what is in your best interest. That’s free enterprise and there is nothing wrong with it. Problems arise only when we, as individuals and families, fail to recognize that all those millions are spent to lift your money from your wallet and deposit it into the coffers of the Behemoths.
What if there was a way to beat that system? What if you could gain control of all of the money that flows through your life? There is. Over the next several posts I will be using famous movie quotes to highlight situations that Americans of all economic and social backgrounds experience and to give specific guidance to those who find themselves in those situations.
I’m not suggesting that you can’t succeed financially by investing. Many already have. What you’ll learn from these posts is that there is a way to invest that manages the risk inherent in giving your money over to the Behemoths. The aim of each of the scenarios we present is to demonstrate how you can keep control of more of your money and build a foundation and framework for your personal economy that will last…in good times and bad.
If your demand is “Show me the money!”, then www.TheMoneyForLifeBook.com satisfies your quest.
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If You Plan to Retire…
March 15, 2008 | Author Dr Agon Fly
If you plan to retire you’ll need money for life…in good times and bad. You’ll need to be free from debt, have an income you don’t have to work for and you cannot outlive, have ready cash to take care of the surprisingly unsurprising surprises that afflict us all and – for some – you’ll want to leave a legacy of your wisdom and wealth for those you care about.
I am not as eloquent or as learned as John Mauldin who wrote the following. But my book Money for Life…in good times and bad shows you a strategy that lets you YouBeTheBank so you can set the Four Pillars, upon which every successful personal economy rests, on a solid foundation. John’s newsletter is lengthy but I encourage you to read it through, and pay special attention to the The Boomers Break the Deal segment.
Thoughts From The Frontline
John Mauldin’s Weekly E-Letter
Muddle Through and Your Long Term Returns
by John Mauldin
3/14/2008
Muddle Through and Your Long Term Returns
Muddle Through and Your Long Term Returns
Muddle Through Gets A Boost
Honey, I Vaporized My Customers
Consumer Spending is Going, Going…South
The Boomers Break the Deal
Today we drop back to take a look at the economy and its long term effect on our portfolio returns. I am in Orlando this week, speaking at the Newport Advisor Conference sponsored by the Newport Group. The attendees are primarily investment advisors focused on larger retirement accounts and pensions. This week’s letter is the gist of my speech I gave yesterday, as the entire speech would be way too long for a weekly letter. I want to thank the Newport Group for letting me do this, and thanks for the very kind way they have hosted me. Note: this week’s letter will print a little longer as there are a lot of graphs. And next week I will address the housing market, as was my intention this week.
Read the rest here –> http://www.investorsinsight.com/thoughts_va_print.aspx?EditionID=666
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Learn how to protect yourself and your lifestyle from the surprisingly unsurprising surprises of living in the 21st century –> www.TheMoneyForLifeBook.com
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Get elected to Congress and get rich
March 14, 2008 | Author Dr Agon Fly
WASHINGTON (Reuters) – The personal wealth of members of the U.S. Congress has soared in recent years, leaving lawmakers on average far more well-to-do than most Americans as of 2006, said a study on Thursday.
The median net worth of senators was estimated at $1.7 million and House of Representatives members at $675,000, said the Center for Responsive Politics, a Washington watchdog group that monitors the influence of money on government…”They have millions of dollars invested in politically influential industries that they also regulate,” such as real estate, banking, pharmaceuticals and energy, the center said.
http://www.reuters.com/articlePrint?articleId=USN1330776120080313
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Gain control of the money that flows through your life before your Congress Person does –> www.TheMoneyForLifeBook.com
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Posted in Legal, Ethical, Moral, Money, Taxes | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | 1 Comment »
The Taxing Business of Paying Money for Taxes…
March 14, 2008 | Author Dr Agon Fly
I am grateful that I live in America where I can complain without recrimination about paying money to the government in taxes .
I am also grateful that the government to which I pay those taxes protects me from crime, foreign invasions, charlatans of all kinds and – at times – from myself.
The taxing business of paying money for taxes results from our always-self-interested elected fools – especially those in DC – who are spending our tax money to get re-elected. I wish the dim-wits in the US Congress…
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~ would eliminate the IRS,
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~ enact a flat tax of some sort,
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~ enact a balanced budget amendment,
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~ give the President the line item veto,
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~ fix Social Security (including placing themselves and all other federal workers in the system),
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~ commit to energy independence,
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~ solve the illegal immigration problem,
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~ figure out a free enterprise solution to the health insurance mess…
In other words, our legislators should solve our country’s problems instead of spending their time trying to demean and impeach each other for the sake of their own perceived political gain.
The US Congress has become an impediment to solving the problems of the people they are sworn to serve. It is they who have divided the country. It is they who have thrown the gauntlet and created the duel between the branches of government. It is they and their political agendas that have stymied progress in so many areas. It is they who are wasting our money and making the business of paying taxes – taxing.
The behavior of the US Congress is unethical and immoral. I’m not talking about the few who stashed money in their freezers or took lobbyist money and got caught or behaved badly in some airport. I’m talking about the entire US Congress that is stealing from America and putting America at risk by ignoring the people’s business in favor of partisan infighting and personal aggrandizement.
We can rant about the Collective of Clods on Capitol Hill and hope our words sting some enough to create the substantive change America needs. We can’t create that change.
We can individually create the changes in our personal money practices that allow us to maintain peace of mind about our money regardless of the shenanigans of the Weak-Backed Wimps in Washington. I encourage you to discover how –> www.TheMoneyForLifeBook.com
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Posted in Legal, Ethical, Moral, Money, Personal Financial Management, Taxes | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Living, Dying and Dollars…
March 13, 2008 | Author Dr Agon Fly
There’s a movement afoot in the financial planning business called “life planning” or “holistic planning.” The basic premise of this approach is that the planner focuses on issues that encompass your money issues instead of just paying attention to investments and - peripherally – risk management questions.
Planners who adopt this approach ask questions about your financial and investment goals and risk tolerance, as do all investment advisors. An holistic planner also asks how you feel about your future, your family and the other facets of your life that embrace your money issues but are not numeric; questions of living and dying.
Although this approach is touted as “new”, it is actually a return to the practices that were prevalent for over a century prior to the 1980′s. Beginning in this decade the investment community moved – perhaps unconsciously – to eradicate ”holistic” planning. The dawn of computers as tools to model and manipulate one’s perception of the future created an environment dominated by projections and hypothetical performance. The Behemoths developed pre-packaged programs that let the planner plug in numbers and generate 50 page reports that promised the incredible, but guaranteed nothing. This model replaced concerns about living and dying with discussions of rates of return, long term market performance, and all star fund managers. In other words, the focus changed from what’s important to you to what’s important to the planner and the Behemoth s/he represents.
One Behemoth has an advertising campaign that mocks this approach with cartoon-like characters that complain about the insensitivity of their current advisors. Another suggests that you don’t need to pay someone to just run the numbers for you since you can personally use online resources to solve the investment equation. Neither of these companies is concerned with your living and dying – they have simply disguised their focus on acquiring your assets.
A planner that focuses on you, your family, your feelings and your future is invaluable. Many planners today are re-learning the practices that prevailed from the days of our Founding Fathers through most of the 20th century. The Certified Financial Planning (CFP), the Chartered Life Underwriter (CLU) and Chartered Financial Consultant (ChFC) programs pay a lot of attention to teaching them. These designations do not, however, guarantee that the planner who puts them on her/his business card uses an holistic approach. Planners that work for the Behemoths are still bound to sink their hooks into your assets. They concern themselves with other issues only peripherally and only if it serves their main goal of getting your money into the Behemoth’s account. They have the designations for the sake of the designation. They do not truly follow those practices.
If you would like to learn how these practices are put to work for typical Americans, read Money for Life…in good times and bad –> www.TheMoneyForLifeBook.com
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Posted in Money | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | 2 Comments »
A Ray of Economic Hope…
March 12, 2008 | Author Dr Agon Fly
What happened to the mortgage industry is a mirror image of what’s happening to American families. The mortgage industry’s lust for “more,” regardless of the risk, led it over the precipice of failure. The American families that continue to incur debt in their lust for “more” are connected by an umbilical to the lending industry that is failing.
The Federal Reserve Bank – which, by the way is not a part of the federal government, has no reserves and is not really a bank – is acting to rescue the banking industry from demise in order to rescue American families from theirs. It won’t work unless the American family is willing to fore go additional debt and begin to resolve the debt they currently have.
The article below outlines what the Fed is doing for the banking industry. Money for Life…in good times and bad describes in detail what American families can do for themselves. You can have everything you need and almost anything you want without using credit. Check it out —> www.TheMoneyForLifeBook.com
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Investor’s Business Daily
Bernanke Steps Up
Tuesday March 11, 6:55 pm ET
Ibd
Read the entire article here –> http://biz.yahoo.com/ibd/080311/issues.html?.v=1&printer=1
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Posted in Money | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Spitzer, Moralizing and Money…
March 12, 2008 | Author Dr Agon Fly
Eliot Spitzer, soon-to-be former governor of New York, spent most of his recent professional career tilting against windmills on Wall Street and chasing the operatives of organized crime. He won a few battles and gained power in the process. Money wasn’t an issue for this privileged man who is heir to a $500 million estate. The money allowed the public man to erect a facade of rectitude while the private man supported criminal institutions - his real crime – by spending tens of thousands of dollars – perhaps even some of the people’s dollars – on high priced prostitutes.
“Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men.” The historian and moralist, John Emerich Edward Dalberg Acton, first Baron Acton (1834–1902), who was otherwise known simply as Lord Acton, expressed this opinion in a letter to Bishop Mandell Creighton in 1887. Eliot Spitzer could be the poster child for Lord Acton’s assertion.
There is a lesson we can learn about our own money from Spitzer’s downfall. I don’t buy the claim that this is “a personal matter”, which implies that it affects only the person who abused. When money is misapplied – as was the case here – it demonstrates disrespect for spouse, children, co-workers, the law and lawmakers, bureaucrats and enforcement personnel, and the people – that’s you. That’s far from “personal.”
It is important to respect money just as we respect other property and persons. When we misapply our money we adversely affect others. We create dependency on others, which deprives them of resources. We create a downward financial spiral. Following the Debt Paradigm is a form of disrespect of money. It creates a facade of concern about self and family but is really self indulgence, fired by basic human tendencies and desires. But, just as Spitzer deluded himself into believing that he could evade reality, that his behavior was just a “personal matter,” so we delude ourselves about spending practices that incur debt and that serve the aims of Behemoths instead of ours and those of our families.
Money for Life…in good times and bad is a book about money and – tangentially – about morality. It deals with ways to respect yourself, your family, your life and your money with the certitude that such respect requires and reinforces ethical behavior. Take a look at the Table of Contents for the book at www.TheMoneyForLifeBook.com and see if there isn’t the glimmer of and idea there that might be of interest to you.
See http://themoneyforlifebook.wordpress.com/about-money-for-lifein-good-times-and-bad/
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PS – Pointing at the ethical and moral failures of others is risky business since no one – excepting a few saints – is free of failure or perfect in execution. I have made my share of mistakes in life as have most. I use Eliot Spitzer’s failures as the example instead of my own because his high office and visibility add drama and credibility to the point being made that an obscure financial writer and guide cannot equal.
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PPS – I believe passionately that people who follow the practices described in Money for Life…in good times and bad will reap benefits that diffuse throughout their lives and will create abundance for them, their families and their heirs. — www.TheMoneyForLifeBook.com
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Posted in Legal, Ethical, Moral, Money, Taxes | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
I Hate Spending Money…
March 10, 2008 | Author Dr Agon Fly
A recent study found that spending cash - tens and twenties and fifties - was emotionally painful while flipping out the credit or debit card was not only not painful but created a sense of well being – unless, perhaps, you were entertaining at a high class restaurant and shivering in fear because you were unsure if there was enough credit left on your card to pay the bill.
I can relate to the pain of spending cash. I hate spending money. Taking actual cash out of my pocket and giving it to someone else galls me. I recently had the opportunity to buy a 2004 Mercedes Benz ML350 (a small suv) with only 29,000 miles on it for a great price. I have the money to finance it myself, but I just couldn’t bring myself to part with thousands of dollars even knowing that I would repay every penny of principal and interest into my own “bank.” It was too painful. Plus, my 1993 Geo is still running strong and getting 30+ miles per gallon so spending money on the Mercedes wouldn’t be the end of giving my money away. I’d have to spend more on gas, and service would be more expensive too - more money out of my pocket.
Borrowing the money from a bank to buy the Mercedes was tempting. That way I’d give my money away in smaller chunks and it might not hurt as much. It would cost a lot more, but I could rationalize and say I was using the bank’s money. The bank would smile at me, but giggle in the back room because the bank would know how much money they were going to make off of me over the finance period, and the bank would also know that the car was really theirs until the last payment arrived in 24, 36, 48, 60, 72 or 84 months – the longer the better - for the bank.
The Debt Paradigm has America convinced that individual citizens can apply the same rules to their personal economies that governments and major corporations apply to their much larger and more robust economies. American’s are subjected to seminars and other training programs that portray the behavior of the “wealthy” as the ideal and insist that the average American can live like Donald or Oprah if only they follow the magic path to riches that the other wealthy folks are traveling.
BUNK!
There is a way that any American, who wants to, can build a personal economy that lasts starting from wherever he or she is today and without mastering some esoteric system that was perfected by the “wealthy.” —> www.TheMoneyForLifeBook.com and you owe it to yourself to give it a look.
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Posted in Debt, Money, You BE the "Bank" | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Money, Income, Wealth and Happiness…
March 10, 2008 | Author Dr Agon Fly
The New York Times ran an item today entitled Income and Happiness: An Imperfect Link by Robert H. Frank, an economist at the Johnson School of Management at Cornell University.
You can read the entire article here –> http://www.nytimes.com/2008/03/09/business/09view.html?_r=1&ref=business&pagewanted=print
I wrote an email to Dr. Frank in response to his article. Here is the email:
“Robert,
Thanks for raising this question. There’s one key component of happiness that you touched on – peace of mind – that is missing from most discussions about people, their personal economies and government’s role in our lives.
If our never-too-bright congress is holding hearings on the relationship between income and happiness, the first thing they need to consider is that income derived from work is just one function within a complex equation, and it is by no means the most important.
There are four specific measures of wealth and well being that I’ve discovered while helping people with their money for over 35 years. I call them the Four Pillars of Financial Security and discuss them in great detail in my book “Money for Life…in good times and bad:
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You are free from debt and own what you own without credit strings attached
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You have income you don’t have to work for and you won’t outlive
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You have enough ready cash to deal with the ups and downs of life without having to pull out the credit card or dip into the retirement account or access the equity in your home
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You leave a legacy of your wisdom and wealth behind when you pass to the other side.”
I’d like your thoughts and comments. You can read more on the blog or in the e-book (the paperback will be out soon – cover design is holding up the presses.)
Thanks for your time and attention.”
You can learn about this approach to money, income wealth and happiness at –> www.TheMoneyForLifeBook.com
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Another Financial Forecast for 2008 – and Beyond…
March 9, 2008 | Author Dr Agon Fly
Would You Buy Stock In U.S.A., Inc.?
by Gary D. Halbert
March 4, 2008
Introduction Several years ago, I wrote an E-Letter that compared the United States to a giant corporation – USA, Inc. In that 2003 E-Letter, I predicted that USA, Inc.’s economy would surprise on the upside in the coming years, and it certainly did. I also recommended that investors move back to a fully invested position in stocks at that time, if they had not already done so.
When I wrote a second E-Letter on USA, Inc. in 2004, most in the media were pessimistic on the outlook for the economy. Unemployment was considered to be chronic, even though it was only slightly above 6%. Others moaned about the growing federal deficit, blaming both the Bush tax cuts and the ongoing war in Iraq. Yet, the US economy continued to grow robustly, and the stock markets set new high after new high.
With many economists expecting the current sub prime and housing woes to result in an economic recession, as well as a sure “CEO” change for USA, Inc. in November, I thought that it was high time that I revisit this topic for my E-Letter audience. We currently have the usual dichotomy of those who believe things will get better, those who think things will get worse, and of course, we can’t leave out the gloom-and-doom crowd for whom the sky is always falling. However, this time around, we seem to have more experts lining up on the negative side than on the positive, possibly including Fed Chairman Ben Bernanke, the “CFO” of USA, Inc.
This week, I will attempt to give some perspective by analyzing the current situation as if the United States of America was a stock – USA, Inc. - and whether or not we would want to buy shares in it. Would we want it as a long-term holding in our investment portfolio or our retirement fund? Let’s play like stock analysts and take a closer look.
Read the entire article here —> http://www.investorsinsight.com/forecasts.aspx _________________________________________________
To insulate your personal economy from possible future financial failures in the general economy go here –> www.TheMoneyForLifeBook.com
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Posted in Money, Personal Financial Management, What Others Say | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Money…
March 9, 2008 | Author Dr Agon Fly
Money is important. We all need it to survive and thrive. “Money” is a word that has many slang and recognized synonyms. Since I’m feeling particularly tired today – loss of an hour due to DST – here’s some of them for your consideration.
Almighty Dollar, banknote, bankroll, beans, bill, boodle, bread*, bucks*, cabbage, capital, cash, check, chicamin, chips, coin, coinage, dinero, dough*, ducats, filthy lucre, finances, fund, funds, gold, gravy*, green, green stuff, greenback*, hard cash*, jack, kitty, legal tender, long green, loot*, lucre, mazuma, moolah, pay, payment, pesos*, property, resources, riches, roll, salary, scratch, silver, skin, specie, sugar, treasure, wad*, wage, wampum, wealth, wherewithal* 4>From Thesaurus.com |
Text: something (as pieces of stamped metal or printed paper) customarily and legally used as a medium of exchange, a measure of value, or a means of payment <are you sure you have enough money to buy all that?> Synonyms: bread [slang], cash, chips, currency, dough, gold, jack [slang], legal tender, lucre, pelf, tender, wampum [slang] Related Words: change, coinage, specie; paper money, scrip; banknote, cashier’s check, check, draft, money order, note; bill, buck, dollar, greenback; bankroll, capital, finances, funds; mite, pittance; bundle, fortune, king’s ransom, mint, wad; abundance, means, opulence, riches, treasure, wealth; resources, wherewithal; pin money, pocket money, spending money
From Merriam-Webster
A word this frequently referenced must have powerful meaning in everyday life. Knowing how to deal effectively with the powerful “Almighty dollars” that flow through your life is essential to your personal success.
Visit www.TheMoneyForLifeBook.com and order the FREE report Why Budgets Don’t Work - you’ll gain insight into your money management practices and – maybe – find a way to get more money and keep more of what you get.
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“The Secret” and “The Science of Getting Rich”…
March 8, 2008 | Author Dr Agon Fly
In 1910 an amazing man named Wallace D. Wattles wrote an amazing little book – The Science of Getting Rich. The ideas in this brief tome have been resurrected and reinterpreted today in videos and books under the banner of The Secret.
The basic premise in both works is that there’s enough wealth in the world to allow everyone to fully participate, but most folks just don’t know how to go about it. Rereading the original text this morning it dawned on me that what we call The Debt Paradigm in Money for Life…in good times and bad is a 21st century perversion of Wattle’s and The Secret’s basic tenets.
The Debt Paradigm intones the mantra that you can have everything you need and anything you want as long as you have enough credit. This perversion substitutes “having” for “owning.” It traps you in a circular process of acquiring things that you do not own and paying someone else for the privilege of going broke. The Debt Paradigm denies the possibility that you can have what you need and want without credit. It denies you the possibility of getting rich.
Money for Life…in good times and bad is the antidote to this kind of non-productive and destructive thinking. You can have what you need and want and you can get rich. The Science of Getting Rich and The Secret describe the construct or the process that allows you to succeed financially. Money for Life…in good times and bad gives you practical, usable tools to help you realize those possibilities. Money for Life…in good times and bad isn’t a get rich quick scheme or a theoretical discussion of how to invest. Money for Life…in good times and bad guides your use of the money that flows through your life to make sure…
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~ You are free from debt and own what you own without credit strings attached
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~ You have income you don’t have to work for and you won’t outlive
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~ You have enough ready cash to deal with the ups and downs of life without having to pull out the credit card or dip into the retirement account or access the equity in your home
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~ You leave a legacy of your wisdom and wealth behind when you pass to the other side.
There is no other book exactly like it on any bookshelf in America today. You owe it to yourself to buy this book —> www.TheMoneyForLifeBook.com
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Posted in Money, Personal Financial Management, The Four Pillars, What Others Say | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Bank Owned Life Insurance…
March 7, 2008 | Author Dr Agon Fly
Banks are among the biggest buyers of permanent cash value life insurance. They buy so much cash value life insurance that the Comptroller of the Currency of the United States of America regulates how much they can buy and keeps track of how much they own. The cash value of the policies that the banks buy and hold is considered a part of their Tier 1 Capital – the money that regulators consider the safest and that regulators require banks to maintain to protect the bank’s depositors.
“Interesting,” you think, “but what’s that got to do with me?”
First, recognize that banking is at the core of the general economy. Keeping banks solvent is essential to that economy since banks control the flow of money. Many banks rely on cash value life insurance to support their solvency and their role in the general economy. Banks do not rely on equity investing for their Tier 1 Capital, they rely on cash, cash equivalents, government securities and cash value life insurance.
Why don’t the Behemoths, who want you to give them control of your money, recommend that you behave the way the banks behave? Why don’t they recommend that you first establish a foundation of secure Tier 1 Capital for your personal economy, including substantial amounts of cash value life insurance?
You can ask them, but they probably won’t give you a straight answer. They’ll tell you that cash value life insurance doesn’t give you a great “rate of return” or that it’s a bad investment. They’ll suggest that you only need enough money in your Tier 1 Capital account to cover your financial needs for six months. They’ll show you performance data on the “market” and subtlety suggest that you will achieve similar results…but. But, there are no guarantees and, if the “investment” path they suggest for you leads to a financial swamp and you lose all of your money, they are truly sorry but it’s not their problem.
Now, here’s a caveat. I am not referring to independent financial advisors who are properly schooled in the way economies work. A Behemoth is a larger organization that makes its profits from “money under management” and that has no financial incentive to sell you any product that does not deliver your money into their account. Some of the Behemoths refer to you – their “client” – as a “wallet.” Most mutual funds are Behemoths.
There are advisors all over America, however, who will show you a path that leads to the top of the mountain instead of into the swamp. They know how to make sure that your Tier 1 Capital is safe and supports your personal economy – food, shelter, health care, education, financial security, family, community, growth, retirement, legacy…advisors who are concerned about you as a person – not as a “wallet.”
If you’d like to know more about how these advisors deal with money issues, read Money for Life…in good times and bad. Discover an entirely unique and holistic approach that helps you get to the top of the mountain. Then, give us a call and we’ll direct you to such an advisor. www.TheMoneyForLifeBook.com
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Money Limerick…
March 6, 2008 | Author Dr Agon Fly
Comedians know about funny
And beekeepers know about honey.
But, chances are good
That both wish they could
Know more about managing money.
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They can —-> www.TheMoneyForLifeBook.com
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Money and the Media…
March 5, 2008 | Author Dr Agon Fly
If you rely on the media for guidance about money and investing you will soon find yourself lost in a forest of financial misinformation. Both the financial media and the mass media develop their information from sources within the financial community – lobbyists for a specific point of view that serves the bottom line of Behemoths, not your best interests.
Even worse, the well known “advisors” who appear on television and the radio are performers and pundits, not trained financial guides. Their goal is to sell advertising to support their “show” and books and tapes and seminars and speaking engagements to sell their next book, tape, seminar and speaking engagement. I have no problem with that; it’s free enterprise and it makes us all stronger. I do it myself, but in addition, I put my 35+ years of experience helping individuals, families and businesses small and large with money issues into the equation.
That’s not the point of this post, however. Watching the news this morning to catch up on the primary results I realized that over 60% of the commercials on three different cable networks – CNN, FOX and MSN – were focused on negotiating tax relief with the IRS, negotiating debt reduction with credit card companies, acquiring new credit cards, borrowing to buy things and “interest free” purchases. Another 20% focused on capturing your money in 401(k) rollover accounts, planning for your “dreams” (interesting choice of words), on-line stock trading or other investment schemes, health insurance or mortgage rates. (I guess the politicians are wisely watching the commercials instead of the “shows.”)
The commercials do not address the same topics as the pundits and performers. They do address the issues my clients talk about every day, “How can I have the things I need and want without the risk of debt overtaking my personal economy?” or ”How do I run my business so the profits come to me and not the IRS?” or any of dozens of other questions about current concerns; paying for college, or health care, or retirement, or housing, or vacations, or cars, or…you get the picture.
My point is this: American’s are trapped in an outmoded pattern of thinking I call The Debt Paradigm, which recites its mantra non-stop: “You can have everything you need and anything you want as long as you have enough credit.” We are even using credit to pay for our retirement when we finance the things we need and want and, at the same time, put money aside in an IRA, a 401(k) or its equivalent instead of paying for what we buy with money from our own “bank”.
The Point! The media and the pundit performers always operate in their own best interest not yours. They continue to tell the story of The Debt Paradigm as if it were the gospel. Even when they decry debt, they still promote the corrolary to the main mantra, which is that investing is better than saving. They are wrong. Americans have lost thier way. The past offers wisdom and the 21st century offers powerful financial products that serve you and not the Behemoths.
You owe it to yourself, your family and your future to discover the secrets to Money for Life…in good times and bad. If you don’t want to spend the $29.95 to buy the book, at least get a head start on your future and get the FREE white paper Why Budgets Don’t Work at www.TheMoneyForLifeBook.com
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Financial Satisfaction Survey Results posted on a separate page –>
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Posted in Debt, Money, Personal Financial Management, What Others Say, You BE the "Bank" | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
The Problem With Predictions About Money and the Economy…
March 4, 2008 | Author Dr Agon Fly
Mass Mutual Life Insurance Company uses a great advertising slogan: “You can’t predict. You can Prepare.” Like many other ads, this one contains wisdom but needs elaboration to be meaningful.
The problem with predictions is that they rely mostly on the view in the rear view mirror. Charlie Keating spoke at my 1958 Cincinnati McNicholas High School commencement about morals and ethics. Who would have suspected he’d destroy the entire savings and loan industry and end up in jail for cheating investors? Two weeks before the Wright brothers made their first flight Wilbur predicted that man would not fly for another 50 years. In the early 1900′s the executive in charge of the U.S. Patent Office predicted that man had already invented everything of importance and that the patent office should be closed.
The problem of predicting when it comes to money and the economy is even more complex – if not impossible.
First, we are human; by our very nature we appear predictable yet nature allows and demands that we act in unpredictable ways. For example. we incessantly and compulsively study the “markets” and we act on our insights. The reality is, however, that if 100 of us all study the same information in the same way we are still likely to come to entirely different conclusions and take entirely different actions. If that were not the case, we would all have the same results – good or bad – Warren Buffett or Charles Keating. In addition, our studies are limited to the information available to the public. Recall the impact of thievery and greed on the may individuals who hooked their financial security to MCI, ENRON, Qwest, Global Crossing, and on and on.
The second issue is the unpredictability of non-economic events on economies and money. We shouldn’t need any reminders about this, but just in case, think back on the economic effects of 9/11/2001 and Katrina. On a personal level, think about the individuals and families that you know that have had their personal economies turned upside down by illness or drugs or any of the thousands of life changing events that people experience every day.
There are others; technology advances, religious terrorists, eco-terrorists, tsunamis, global warming (regardless of the cause), political upheavals and regime changes, genocide - an endless list.
Recognizing that you can’t predict, how, then, can you prepare? That’s the core message of Money for Life. In the 1950′s, preparation meant building a bomb shelter and stocking it so you could survive a nuclear attack. Economic preparation today means building a financial bomb shelter and stocking it with money that you can control when a recession or depression hits, or when you become disabled, or when your business partner runs off to the Bahamas with your secretary and all of the cash, or your child becomes addicted to drugs and you have to spend thousands on detox and rehab…another endless list.
You owe it to yourself and your family to learn the secrets –> www.TheMoneyForLifeBook.com
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Posted in Money | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Buffett – On Banks Losing Money…
March 3, 2008 | Author Dr Agon Fly
Forbes.com (Annual Letter To Shareholders – Buffett On Investing And The Markets – Forbes.com Staff 02.29.08, 9:00 PM ET) excerpted the following gem from Warren Buffet’s annual letter to Berkshire Hathaway shareholders – http://www.berkshirehathaway.com/letters/2007ltr.pdf:
“Some major financial institutions have, however, experienced staggering problems because they engaged in the “weakened lending practices” I described in last year’s letter. John Stumpf, CEO of Wells Fargo aptly dissected the recent behavior of many lenders: ‘It is interesting that the industry has invented new ways to lose money when the old ways seemed to work just fine.’
“As house prices fall, a huge amount of financial folly is being exposed. You only learn who has been swimming naked when the tide goes out – and what we are witnessing at some of our largest financial institutions is an ugly sight…”
Ugly indeed! One more reminder that every business’s economy, just as every personal economy, is prone to failure when it engages in unnecessary risk. Multi billion dollar banks can – of course – withstand the failures inherent in risk more easily than you and I; they are leveraging our money as well as theirs. You, as an individual or family, however, rely entirely on your own money UNLESS you have discovered a method of managing the flow of money through your lives that lets YouBeTheBank. Then you can armor yourself against investment risk while your neighbor struggles to pay the credit card bill and mortgage and hopes his 401(k) doesn’t crash and burn.
Being successful with money is easy and a great deal of fun once you know how. The secret is that you can have results like Warren Buffett or you can follow the folly of the banks. The tides on its way out. Get your swim suit here www.TheMoneyForLifeBook.com
Posted in Money, Personal Financial Management, What Others Say, You BE the "Bank" | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Financial Satisfaction Survey Results…
March 2, 2008 | Author Dr Agon Fly
Reading survey results is a heck of a lot easier than writing about them.
Our sincere thanks to the dozens of Americans who responded to the Financial Satisfaction Survey that The Money for Life Blog ran through Survey Monkey durning the month of February 2008. The survey asked eight questions about how the survey takers regarde aspects of their personal economies. The survey results are shown at the end of this post. In the meantime, here are a few observations.
OVERALL:
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27% of the respondents rated themselves in the top 3 catagories;
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27.7% rated themselves in the bottom 3 catagories;
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45.3% ended up in the middle 3 catagories;
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Many more respondents rated themselves in the bottom catagory (Ugly) than gave themselves a top rating (WOW);
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55.3%, however, placed themselves in the top 4 rating catagories;
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32.9% landed in the bottom 4;
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Only 10.8% rated themselves in the middle.
CATAGORIES: Contrary to the protestations of almost every pundit and politician, most American’s seem to feel pretty good about their personal economies. The survey felt the catagory ratings would be meaningfully divided into three sections – top 3, middle 3 and lower 3. As it turns out,however, the top catagory received very few responses – just over 1% of the total – so we dropped down to the bottom 4 versus the top 4.
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71.5% fell into the top income satisfaction catagories;
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62.2% saw their debt situation as satifactory (5.6% saw it as WOW);
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66.7% – almost exactly 2/3rds – were happy with the ready cash they had available;
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Satisfation with long term savings split almost evenly between the top 4 (50.1%) and the bottom 4 (49.9%);
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56.6% felt more secure than not (2.8% voted WOW);
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64% didn’t see taxes as a major burden (and I feel pretty confident the wealthiest in America were not responding);
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Only 25% were worried about their personal economies while a whopping 75% seem pretty comfortable;
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An equally small group (25%) felt their pesonal economies were too complex.
Granted, this is not a scientific survey. The individuals who took the survey are currently more interested in building a solid personal economy than the average American; taking the survey is itself an indication of that. Regardless of these considerations it is worth noting that not even one of those who took the survey considered him/her self a financial failure.
The weakest ratings related to long term savings. This doesn’t surprise us. The primary focus of www.TheMoneyForLifeBook.com is on demonstrating how to make certain your savings allow you to thrive in good times and bad.
Thanks again to all of the participants!
Ugly! |
Oi vei! |
Help! |
Mom! |
Eh? |
OK. |
Good. |
Mrvls! |
WOW! |
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|---|---|---|---|---|---|---|---|---|---|---|
| Income? | 5.6% | 5.6% | 11.1% | 8.3% | 16.7% | 38.9% | 8.3% | 5.6% | 0.0% | |
| Debt? | 13.9% | 8.3% | 5.6% | 5.6% | 5.6% | 16.7% | 16.7% | 22.2% | 5.6% | |
| Cash? | 16.7% | 5.6% | 5.6% | 5.6% | 11.1% | 27.8% | 22.2% | 5.6% | 0.0% | |
| Savings? | 22.2% | 2.8% | 19.4% | 5.6% | 2.8% | 27.8% | 16.7% | 2.8% | 0.0% | |
| Security? | 13.9% | 0.0% | 11.1% | 5.6% | 11.1% | 25.0% | 19.4% | 11.1% | 2.8% | |
| Taxes? | 8.3% | 13.9% | 11.1% | 2.8% | 16.7% | 41.7% | 5.6% | 0.0% | 0.0% | |
| Worries? | 11.1% | 5.6% | 8.3% | 0.0% | 16.7% | 27.8% | 27.8% | 2.8% | 0.0% | |
| Complex? | 11.1% | 0.0% | 5.6% | 8.3% | 5.6% | 27.8% | 41.7% | 0.0% | 0.0% |
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The Satisfaction Survey results will also be posted as a separate page on the blog –>
Posted in Money | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | 2 Comments »
Financial Tides and Money Mastery…
March 1, 2008 | Author Dr Agon Fly
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~ The bursting of the real estate bubble!
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~ The discounting of the dollar!
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~ The slide of the stock market!
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~ The contraction of consumer spending!
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~ The sky is falling, the sky is falling!
Remember, it’s an election year. The candidates have to point to whatever they can that promotes their positions and detracts from those of their opponents. Remember, also, that the media has to talk about and write about the most dramatic topics they can uncover to gain your attention and sell their products. Remember, also, that the turbulence and turmoil that surrounds these prophets of doom is mostly their own creation and not a reflection of what’s really happening.
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~ 93% of mortgages are being paid on time and according to the terms of the loan.
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~ Housing prices are declining more slowly than they increased in many areas, so most homeowners are still retaining equity they had previously gained and are not finding themselves “upside-down.”
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~ The discounted dollar is stimulating the purchase and export of American goods and services overseas and thereby creating jobs for American workers.
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~ The stock market is contracting and creating underpriced equities that will appreciate rapidly as the market rebounds.
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~ Consumers are saving more and spending less.
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~ Tides come and tides go – the sky remains where it is.
Economies are and always have been cyclical. Do not allow the merchants of misinformation and their sidekicks, the snake oil sales reps of Wall Street, to mislead you into thinking that the end is near. If your personal economy is suffering because of the outgoing tide, that means your individual money practices aren’t working properly. It’s probably time for you to reconsider how you save, spend and invest. Folks who follow the practices that are described and discussed in Money for Life are not seriously concerned about the tides. They have solid foundations and sturdy frameworks for their financial structures. They do not suffer the “arrows of outrageous fortune” like those who follow The Debt Paradigm.
IT’S TIME! DISCOVER A BETTER WAY –> www.TheMoneyForLifeBook.com
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Satisfaction Survey results and commentary tomorrow. Tune in and be amazed at what your fellow Americans think and feel about their personal economies.
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We’re Not As Rational About Money As We Think We Are…
February 29, 2008 | Author Dr Agon Fly
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“The economic point is that how you spend or manage your money can be thought of as an extension of your deepest self, your core values. And this realization lies at the core of the Money for Life philosophy. When the choices you make with your money are in alignment with your deepest values, your money and the decisions you make regarding it are more likely to make you happy. Your money, and the Economy is serving you and the ideals you hold dear, not vice versa.”
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“Can thinking about an arbitrary number influence how much you’re willing to pay for a computer keyboard, a bottle of wine or a box of chocolates? Apparently so — and the degree of influence may shock you.
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“In Predictably Irrational, Dan Ariely, a professor at Massachusetts Institute of Technology’s Media Laboratory and the Sloan School of Management, put the question to the test in an experiment involving a group of MBA students.
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“The experiment began with students being asked to write down the last two digits of their Social Security number. When the experiment ended, it revealed a pattern — that students with Social Security numbers ending in the highest-ending digits (80-99) were willing to pay more for items (the wine, the chocolates, etc.) than students with the lowest-ending Social Security numbers (01-20) were willing to pay.
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“Experiments such as this make up the foundation of Ariely’s book. Ariely argues that while economists continue to base theories on the idea that humans are rational — that we make optimal economic choices based the information we have — the notion is fundamentally flawed. Not only are we irrational, says Ariely, but when and in what form irrationality surfaces is predictable.
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“Economics can be a tough subject to tackle, but Predictably Irrational is surprisingly entertaining. While the book belongs in the same family as Freakonomics, don’t expect the same kind of theoretical hand-waving. Ariely is less interested in regression analysis and more interested in simple behavioral experiments such as trying to determine if the first person to order a beer at the table is happiest with his choice (yes).”
You can read the USA Today article here – http://usatoday.printthis.clickability.com/pt/cpt?action=cpt&title=Not+as+rational+as+we+think+we+are+-+USATODAY.com&expire=&urlID=26739216&fb=Y&url=http%3A%2F%2Fwww.usatoday.com%2Fmoney%2Fbooks%2Freviews%2F2008-02-24-predictable-irrational_N.htm&partnerID=1661
Everything we do is affected by our minds, our hearts our hormones and our bodies. The merchants of misinformation and their minions, the snake oil sales reps from Wall Street, want you to believe that they have found the sourcerer’s stone and that all you have to do to achieve wealth is follow their “system.”
BUNK!
Discover a better way that relies on awareness of who you are and how personal economies actually work instead of adherence to a rigidly drawn plan that serves the Behemoth that wrote it much better than it serves you –> www.TheMoneyForLifeBook.com
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Today is your last chance to take the Financial Satisfaction Survey - the link to this anonymous two minute survey is on the side bar —>
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Whole Life Insurance is Life Insurance…
February 28, 2008 | Author Dr Agon Fly
Whole life insurance serves two separate and distinct functions.
A. During our lifetimes, whole life insurance serves us as a depository and source of borrowed money…our “banks”.
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~ The money we accumulate in a whole life insurance policy is secured by policy guarantees.
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~ Our policy cash values are accessible if we need them because some life event surprised us with expenses we didn’t plan for.
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~ If we become disabled, and added a premium waiver benefit when we bought our policy, the policy will pay for itself. We will continue to have access to the cash values in the policy as if we paid the premiums out of our own pocket.
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~ Our policy cash values quietly and consistently accumulate over our lifetimes – guaranteed.
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~ We can use the cash values in our whole life insurance policies as the source of borrowed funds for purchases large and small.
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~ We can repay the loans we make to ourselves and recapture all of the principal and interest we would otherwise pay a third party lender – all of it.
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~ The money we save by borrowing from ourselves and repaying ourselves enhances the cash values we accumulate in our policies.
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~ The money we accumulate over our lifetimes in a whole life insurance policy becomes an inexhaustible income stream whenever we choose to make that happen…no government penalties or employer restrictions.
B. When we die – and, although that is a certain event, it is not a predictable one – those we care about (our named beneficiaries) receive a large sum of totally income tax free cash – money that they can use to help put life back together after our death.
There are many benefits that accrue to individuals and families that use whole life insurance as the foundation of their personal economies; so many that they cannot be summarized in a few hundred words in an article or a blog post. You can discover these benefits and find out how to apply them to your personal economy in Money for Life…in good times and bad – How to Thrive in the 21st Century. The complete e-book is available today at www.TheMoneyForLifeBook.com The paperback should be available sometime in March or early April 2008.
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Money, Whole Life Insurance & Investments…
February 27, 2008 | Author Dr Agon Fly
Societies throughout history are prone to rely on shibboleths as guides. (Shibboleths are oft repeated statements that are considered true just because they are oft repeated.) The millennia old myth of a “sorcerer’s stone” that can turn lead into gold persisted for centuries and led many great thinkers astray. No European would dare sail westward in the 15th century for fear of falling off the end of the earth until an Italian sailor proved the shibboleth to be what it was – an empty fear carried on the wings of empty words. Winged flight was an impossible dream until two bicycle makers from Dayton, Ohio proved otherwise at the beginning of the 20th century.
Here’s a modern shibboleth that is as untrue as those just listed: Whole life insurance is a bad investment. Let me briefly explain why this shibboleth is false and share a few insights as to why whole life insurance should be the foundation of your personal economy.
First off, whole life insurance is not an investment. This makes the statement that “whole life insurance is a bad investment” untrue from the start. It also makes false the implication that whole life insurance is in some way the same thing as an investment and can, therefore, be fairly compared to an investment. Whole life insurance is whole life insurance.
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~ Whole life insurance (and its cousin, fully funded Universal Life insurance) is unique among financial products. It does what no other financial product can; it lets YouBeTheBank.
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~ Whole life insurance guarantees that you will have more money at the end of each year than you started with at the beginning of that year – guarantees it.
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~ You can use the cash values of whole life insurance to finance major purchases like furniture and appliances, to finance home improvements, to finance your cars, even to finance your mortgage.
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~ Your money grows tax free in a whole life policy and, with the proper guidance, you can get it out tax free when you need an income in the future.
Re-read the Dazzling Dozen page –> and the 14 previous posts on the Dazzling Dozen and you’ll get a more comprehensive, though not complete, understanding of the power and potential of whole life insurance. Better yet – go to www.TheMoneyForLifeBook.com and buy the book Money for Life…in good times and bad. You’ll discover a complete guide that lets you apply the tested and proven capabilities of whole life insurance combined with the power of 21st century financial thinking and advanced financial practices to create a personal economy that lasts – in good times and bad.
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The Financial Satisfaction Survey will be closed this Friday. We’d love to have your anonymous responses – it takes only two minutes –>
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Wealth is a Relative Term…Conclusion
February 26, 2008 | Author Dr Agon Fly
In the past few days we have addressed some of the principals and fallacies about “wealth” and even used a post about Monty Python’s Money Song to illustrate two points; it’s ready money that is the measure of wealth for most of us and, not everyone is equipped or motivated to acquire the great wealth of the famously wealthy.
I hope you draw a few simple lessons from these posts.
You, and you alone, decide what “wealth” means to you.
Your definition of wealth today can change tomorrow as your circumstances change.
The first act in achieving and hanging on to wealth is to learn a way to save, spend and invest that lets YouBeTheBank.
“If you focus only on the top of the mountain, the path to the top will elude you.” Dr Agon Fly
“The significant problems we have cannot be solved at the same level of thinking with which we created them.” Albert Einstein
www.TheMoneyForLifeBook.com can and will help you take action.
www.TheMoneyForLifeBook.com can and will help you build a personal economy and personal wealth that lasts - in good times and bad.
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Monty Python on Money…
February 26, 2008 | Author Dr Agon Fly
This post is for your edification and entertainment but it conveys an important message too. I have found over the years that songs, especially songs from musicals, often present us with unintended truths. This one - I hope you have the QuickTime plug-in to play it and you don’t just get to read the words – supports the premise that it is money and not investment that is the measure of wealth for most people.
Oprah, Warren, Donald and friends are a special breed. No matter what the motivational speakers would have you believe, you cannot replicate their wealth, unless of course you are one of the exceptionally rare individuals who have a particular talent for attracting money - one in a billion, I’d guess. You are more likely to be one of us; an abused spouse or child trying to overcome trauma; a parent with a Down Syndrome child that requires constant care and ongoing expense; a widow or widower whose spouse had little or no life insurance; an average Joe with just a high school education who had to support himself at the age of 18 and has struggled just to keep food on the table; a family of four with no particular problem but a schedule so busy and a budget so tight that there’s barely enough time and money for essentials; and on and on and on…
You can, however, learn how to use the money that flows into and through your life to build a solid foundation and framework that allows you to live comfortably and without financial stress. Learn how to save, spend and invest in the 21st century at www.TheMoneyForLifeBook.com
Enjoy the Monty Python Money Song. (And, accept my apologies if some of the other songs on this site – hosted by “Norm” from the TV show Cheers – are not quite as inspiring – read “offensive”)
Posted in Money, The Four Pillars, What Others Say | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | 1 Comment »
Wealth is a Relative Term…Part V
February 25, 2008 | Author Dr Agon Fly
“Lo, Money is plentiful for those who understand the simple rules of its acquisition.
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Start thy purse to fattening (save)
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Control thy expenditures (including spending on “investments”)
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Make thy gold multiply (by earning compound interest, which Albert Einstein called the eight wonder of the world)
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Guard thy treasures from loss (guarantee your principal; don’t put it at risk)
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Make thy dwelling a profitable investment (manage your equity and your mortgage wisely)
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Insure a future income (guarantee it)
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Increase thy ability to earn” (lastly, after all else is accomplished, talk of investing)
The Richest Man in Babylon
The Richest Man in Babylon by George S. Clason has been called “the most inspiring book on wealth ever written.” Throughout this amazing tale, money is referred to as gold. Why is this important? George S. Clason teaches us that gold – money – is the foundation upon which wealth is built. Gambling your money on investments that promise only that they promise nothing is like removing stones from the foundation of your home and using them to build a second floor addition. Soon, the house will collapse.
If you would build wealth for yourself, your family and your legacy you must first lay down a solid foundation of money and erect a framework to deal with the money that flows into and through your life. You need a way to capture money, manage money, compound money, guide money so that it serves you (and not visa versa) and the wisdom to teach your children, grandchildren and those you care about how to do the same – another lesson from The Richest Man in Babylon.
Money for Life…in good times and bad adapts;
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~ the teachings from The Richest Man in Babylon
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~ Benjamin Franklin’s The Way to Wealth
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~ the lessons from visionary works like R. Nelson Nash’s Becoming Your Own Banker, Barry James Dyke’s The Pirates of Manhattan and others
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~ and, the author’s soon-to-be 35 years of helping Americans navigate the rapids of their financial rivers.
You owe it to yourself to get a copy of Money for Life…in good times and bad and re-discover the wisdom of the ages that it re-presents in the easy to read and understand language of the 21st century –> www.TheMoneyforLifeBook.com
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Wealth is a Relative Term…Part IV
February 24, 2008 | Author Dr Agon Fly
“If you would be wealthy, think of saving as well as of getting. The Indies have not made Spain rich, because her outgoes are greater than her incomes.”…”Away, then, with your expensive follies, and you will not have then so much reason to complain of hard times…” Benjamin Franklin in Poor Richard’s Almanac
It’s worth noting that Dr. Franklin does not say “think of investing” when he advises you about building wealth. Only saving is “saving”. Investing is a form of “getting.” Today the merchants of misinformation and their minions, the snake oil sales reps of Wall Street, manipulate the thinking of Americans with self serving shibboleths. They tell us over and over that the market always recovers; they quote the “average” rates of return as if they were guarantees; they insist that if you stay in the market long enough you will always come out ahead; they discount the value of any financial vehicle that does not fit their greed based model of acquiring “assets under management” – a subtle way of saying they make money, whether you do or not, when you surrender your wealth to them.
Spain did not achieve the same degree of wealth as America because Spain consistently sent its money on risk based ventures. It failed to capture its gains by saving. It focused on “getting” and on “expensive follies” – the appearance of wealth. When a potential gain – a maybe – or a superficial possession puts what you have in hand - ready money – at risk it’s easy to lose your grip on what you have. The elite of Spain – and the elite of Europe for that matter – thought themselves wealthy, lived in luxury, and saw Americans as bumbling bumpkins. Americans lived much more conservatively and acted more prudently in business and personal economics. Europe focused on “getting” while America focused on “saving.”
Many Americans of today are behaving like the Europeans of America’s colonial period. They are facing financial hardship or even ruin because they are focused on “getting” instead of “saving.” The sub-prime debacle is the result of people “getting” homes and mortgages without first saving the down payment and saving enough ready cash to deal with the inevitable ups and downs of daily living. The failure of over half of American’s to retire comfortably is further proof. They want the appearance of wealth without first saving to develop true wealth. They want the outcome without the process.
“If you focus only on the top of the mountain, the path to the top will elude you.” Dr Agon Fly
Wealth is relative. So, too, is the appearance of wealth. Two neighbors have similar incomes and live in similar houses. One is fully paid for. The other is mortgaged to the hilt. One drives a ten year old Buick that is paid for. His neighbor drives a brand new Mercedes that costs him thousands of dollars each year in payments, insurance, fuel and maintenance. One sends his children to the public schools and tutors them according to their needs. The other spends tens of thousands of dollars each year to send his children to an exclusive private school. One belongs to an exclusive country club. The other plays golf at the public courses. They both work for a company that is about to go the way of ENRON and MCI. One is wealthy – no matter what. The other will soon be greeting you at WalMart.
One follows the American way – tried, tested, proven. www.TheMoneyForLifeBook.com The other focuses on getting and his follies. No link required.
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Money Hungry…Wealth is a Relative Term…Part III
February 23, 2008 | Author Dr Agon Fly
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Some people are called “money hungry.”
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And others folks get really angry
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When ”hungries” succeed
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At feeding their greed
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While their money stash is quite paltry.
I’ve known and worked with individuals and families whose possesions could be counted without using more than four digits. I’ve know others for whom a seven digit calculator would not be adequate. There are great icons from history who owned little or nothing and never once felt impoverished: The Buddha wandered India with just the robe on his back and his begging bowl in hand; St. Francis of Assisi retreated to a cave and relied on the largess of his community to escape the religious order he founded as it began to amass its fortune; Ghandi, Mother Teresa, Martin Luther King - people the world recognizes for their accomplishments and not their possessions - had wealth that isn’t measured with money.
For the typical American in the 21st century, however, money is essential and being a little bit “money hungry” is seen by most as honorable or at least acceptable as long as individual greed does not infringe on the rights or needs of others.
The number you assign to “wealthy” is a moving target. For one family it might mean burning the mortgage on a modest home and having a steady income. For Oprah, Warren or Donald anything below a ten digit net worth might make them uneasy. What you thought was wealth twenty years ago may seem like petty cash today – or visa versa.
You can put a measure to wealth that is more objective. If you apply the Money for Life Model of the Four Pillars to your personal economy, you can establish a way to both measure and manage the money that flows through your life and build a foundation and framework that allows you define “wealthy” on your own terms.
Discover the secrets that contented people have known and practiced for millennia and that let YouBeTheBank –> www.TheMoneyForLifeBook.com
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This is the last week for the Financial Satisfaction Survey –> Click here to take the survey…
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Wealth is a Relative Term…Part II
February 21, 2008 | Author Dr Agon Fly
Part I of this discussion ended by stating the mantra of the failed Debt Paradigm that so many Americans have been duped into subscribing to; “You can have everything you need and anything you want as long as you have enough credit.” This installment deals with the alternative to the Debt Paradigm we call the Money for Life Model.
The Debt Paradigm tells you that earning and borrowing have equal value in the wealth equation. This thinking, however, creates a money siphon that mortgages your future income and ultimately leads to severe financial stress or even bankruptcy. If I were more adept at blogging there would be a diagram here to illustrate this concept but let me at least try to elucidate with words.
Picture a bucket into which water is flowing - that’s your income going into your checking account. As time goes by, you dip water out of the bucket to take care of your needs and wants just as you take money out of a checking account to pay your bills. Eventually (in the Debt Paradigm) the money flowing into the bucket is less than the money flowing out. The bucket becomes empty. What happens next – and it usually happens before the bucket is empty – is the use of a new money source – credit – to pick up the shortfall of money flowing into the bucket. Aaah! Relief.
But is it really relief? It seems to be so because the new money source is large and friendly (at this point) and you are able to get the things you need and want. But, while this new money source is pouring money into your bucket, it is also installing a siphon with a variable valve attached to take money out. If you follow this paradigm to its logical conclusion, the siphon will eventually take most of the money out before you can spend it and the money source will stop pouring new money in and you will be left with a bucket that has an open siphon that takes your money before you can use it – bankruptcy.
The Money for Life Model changes this verbal picture only slightly. The Money for Life Model installs the siphon when you start pouring money into your bucket and siphons some of the money that comes into income your bucket into your “bank”. When the money coming in is less than the money going out you dip into your “bank” to make up the difference and open the siphon into your “bank” a bit more to replace wht you’ve taken out. This approach recycles your money instead of allowing debt dollars to flow in from credit grantors.
This approach to wealth building is much more than the outmoded “pay yourself first” axiom suggests. It is based on this idea but goes way beyond. If you would like to learn more about your debt siphon, visit www.TheMoneyForLifeBook.com and request your FREE copy of the exclusive white paper Why Budgets Don’t Work. (Of course you will also learn about the groundbreaking book Money for Life…in good times and bad. If your time is short, you can scrroll to the bottem of the page to order the report.)
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Posted in Debt, Money, Personal Financial Management, You BE the "Bank" | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | 1 Comment »
The 800 Pound Retirement Risk Gorilla…
February 20, 2008 | Author Dr Agon Fly
CNNMoney.com
Most Americans Unprepared for Retirement
Tuesday February 19, 3:37 am ET
By David Goldman, CNNMoney.com staff writer
After the author of this article points out that most Americans will have to reduce their lifestyle in order to retire, he goes on to point out that, in addition to lower incomes,
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“…Many workers do not have a realistic estimate of how much they will need to spend on health care when they retire, according to a 2007 study by the Employee Benefit Research Institute (EBRI).
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The study shows that 84% of employees estimated they and their spouse will need to accumulate less than $250,000 for retiree health costs, 32% of whom thought they would need less than $100,000.
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But according to the EBRI, couples will need to save about $300,000 in retirement to cover health expenses, assuming they live to average life expectancy and Medicare benefits remain at current levels. For those who live to 95, that amount jumps to $550,000.”
Read the entire article http://biz.yahoo.com/cnnm/080219/021908_crr_healthcare.html?.v=1&printer=1
Add probable long term care expenses either at home or in a nursing home to those amounts and the typical couple could easily be looking at close to $1 million in post retirement health and care costs alone.
This is not a new problem. The fact is that the entire Debt Paradigm, with its emphasis on investing as opposed to saving, is putting the future of all Americans at risk for the benefit of the merchants of misinformation and the financial snake oil sales reps. You can escape the dungeon of the Debt Paradigm. A good place to start is with the FREE white paper Why Budgets Don’t Work. You can download it at www.TheMoneyForLifeBook.com
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Help us discover how America feels about its financial situation –> Click here to take the survey…
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Posted in Money, Personal Financial Management, Retirement, What Others Say | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | 1 Comment »
Wealth is a Relative Term…Part I
February 20, 2008 | Author Dr Agon Fly
“The use of money is all the advantage there is in having money.” Benjamin Franklin, Poor Richard’s Almanac
Americans has been duped into thinking that the things they buy are “the advantage there is in having money” – the luxury automobile, the house in the hottest neighborhood, the membership in the exclusive club, the time-share in Aspen or Spain, the investment that everyone’s talking about, and on and on. These things give the appearance of wealth. The reality is that every penny of debt that an American has offsets the value of the stuff they own.
Don’t imagine that the equation on the commercial bank’s credit application or the inventory for your homeowner’s insurance company applies here. When you have debt – any debt – the cost to you of the money you borrow is greater than the value of the thing you bought. Let’s wrap some numbers around this statement to illustrate.
Suppose you buy a home entertainment center for $10,000 cash. Right out of the chute your home entertainment center would be worth no more that 50 cents on the dollar if you had to sell it. Now, let’s suppose you also have an outstanding $10,000 home equity line of credit at 6% interest. Clearly, you are paying interest on the entire purchase price through a debt you had prior to the purchase, and that discounts the value of what you bought even further. Add to that the interest that could have accrued if you had saved and…
It gets worse. If you are like many Americans you also have unsecured credit card debt – typically about $10,000 – and an interest rate of about 14%. Imagine what that does to the value of your entertainment center. Pretty soon, if you follow this exercise to its logical conclusion, you’ll come to realize that your entertainment center that is worth less than half the advertised price actually cost you twice the advertised price or more.
It gets worse still. You have a couple of autos that are financed, perhaps some education loans and a few thousand dollars in retail store charges. Add it all up and any money you are earning on your 401(k) or IRA is being wiped out. In addition, you’ll soon come to recognize that all this debt has discounted your future earnings. Before you ever receive your next paycheck, it is diminished by the payments – both principal and interest - on your secured and unsecured debt.
When Benjamin Franklin – or any other money sage throughout history – talks about “the use of money,” they are not talking about “the spending of money.” The word “use” here means “employ.” It refers to creating wealth not just the appearance of wealth.
If you and your family are not on a path to eliminate all of your debt while concurrently laying a foundation of ready cash to deal with the surprisingly unsurprising surprises that life deals out every hour of every day, you are on track to fail financially.
The current failed paradigm, which adheres to the mantra that “you can have everything you need and anything you want as long as you have enough credit,” leads only to one end. It isn’t a pretty one, and it isn’t one toward which Dr. Ben Franklin or Dr Agon Fly would guide you.
There is a much better way. Get your copy of Why Budgets Don’t Work, the FREE White Paper developed exclusively for our newletter subscribers at www.TheMoneyForLifeBook.com
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Posted in Debt, Money, Personal Financial Management | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Wealth and Your Waistline…
February 19, 2008 | Author Dr Agon Fly
The positive relationship between health and wealth is apparent. It’s difficult to acquire wealth when your health consumes your energy and your money.
The negative relationship between weight and health is equally apparent. Obesity creates unintended consequences that cost money…lots of money.
Now the health care industry is going to incorporate a mechanism in health insurance programs to track how health care providers deal with the obesity issue. (See the brief below.) The obvious reason is that obesity leads to heart problems, diabetes, cancer and many other life threatening medical conditions. Each of these conditions is expensive to treat and puts a financial strain on the system, on the patient and the patients financial resources. In addition, many of these conditions are cronic and require home care or nursing home care at $6,000 per month and higher. You don’t need a calculator to figure out that writing a check for an extra $6,000 on the first day of each month for several years will stress the resources even of those who see themselves as wealthy.
Many estates that are built over a lifetime of work and worry are consumed by medical expenses in the last few months or years of life. Obesity can be a significant contributor to this erosion of health and wealth. You owe it to yourself to put a proper plan in place to address the probability that your wealth will be at risk even if you are in great health. Money for Life…in good times and bad shows you how to deal with this issue and with the other financial issues that present themselves throughout your life. It provides clear and effective strategies for accumulating and growing your wealth. It shows you how The Four Pillars can help you measure and manage your progress. You owe it to yourself –> www.TheMoneyForLifeBook.com
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NCQA Adds Obesity Indicators to HEDIS
The National Committee for Quality Assurance is using its latest set of health plan quality indicators to encourage plans to pay more attention to weight.
The NCQA, Washington, says the 2009 edition of the Healthcare Effectiveness Data and Information Set, a tool for comparing the quality of many health maintenance organization plans and some preferred provider organization plans, will include a measure indicating how often doctors check the body mass index of adult plan members.
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Posted in Money, Personal Financial Management, The Four Pillars, What Others Say, You BE the "Bank" | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
The Economic Stimulus Package of 2008 Revisited…
February 18, 2008 | Author Dr Agon Fly
It’s always nice to find support for an idea. Here’s a great article that elaborates with elegance and clarity on the lack of economic wisdom in the stimulus program that the DC insiders have foisted upon us and which we commented on a few days ago.
Ben Franklin said “If you do what you should not, you must hear what you would not.” I hope the folks in DC hear what Yaron Brook has to say…
Commentary
To Stimulate The Economy, Liberate It
02.14.08, 10:28 AM ET
While some in Washington are quibbling about the details of the economic stimulus package, nearly everyone agrees with its basic idea: that our ailing economy needs Uncle Sam to play doctor and hand out some $150 billion in consumer spending money. But this sort of government intervention is not the cure for our economic troubles. It is the cause.
To understand why, we must first recognize that the key economic activity that causes growth is not consumer spending but production.
Read the rest of this very insighful article here –> http://www.forbes.com/2008/02/14/yaron-economy-regulation-oped-cx_ybr_0214yaron_print.html
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If the Legislative and Executive branches of our government followed the wise counsel of our Founding Fathers they would not make many of the mistakes they do. Ben Franklin also said “The ancients tell us what is best; but we must learn of the moderns what is fittest.” If you would hear the wisdom of the Founders expressed in terms that fit the 21st Century go to www.TheMoneyForLifeBook.com and get your copy of Money for Life…in good times and bad – How to Thrive in the 21st Century. You’ll never regret knowing more or owning more.
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Posted in Money, Personal Financial Management, Taxes, What Others Say | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
A Money Limerick and A Money Lesson…
February 17, 2008 | Author Dr Agon Fly
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Comedians know about funny,
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And beekeepers know about honey.
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And chances are good
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That both wish they could
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Know more than they know about money.
Everyhting you do in life is affected by money and money affects everything you do.
Like the comedian and the beekeeper, you are an expert at what you do. You spend most of your time and energy knowing what you know so you can pursue the practice or career that you have chosen and increase the money that flows through your life. You , however, are not necessarily an expert with money. Like the comedian and the beekeeper, you’d probably like to know more about how to benefit from the money that enters your life when you do what you do.
Here’s a little exercise that might help. Make a list of the items you have purchased for about $30 during the past month: a couple of bottles of wine for dinner, lunch at an average restaurant, a shirt or blouse on sale, dry cleaning, a movie with a friend or spouse, music, a nosebleed seat at a ball game, a subscription to a magazine or newspaper, and on and on. Now, of all the items and events you have spent $30 on in the last 30 days, how many of them made some Behemoth wealthier instead of making you wealthier?
Well, here’s one more item that you can spend about $30 on that lets you know more about money than you know now; that promises to make you wealthier; that reveals secrets that have been buried for decades by merchants of misinformation and financial snake oil sales reps; that lets YouBeTheBank…
follow this link –> www.TheMoneyForLifeBook.com
You’ll never be sorry that you know more or own more and Money for Life…in good times and bad will help you with both.
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Please, visit the Financial Satisfaction Survey page if you have an extra two minutes and help us report on 21st century attitudes about money. Thanks –>
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Posted in Money, You BE the "Bank" | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
“In Debt Up to My Eyeballs…”
February 16, 2008 | Author Dr Agon Fly
Just a reminder of the thinking that led to the sub-prime crisis that we currently face. Stanley Johnson is the star of this Lending Tree commercial and the poster child for the Debt Paradigm.
http://www.youtube.com/watch?v=hn5EP9StlVA
There is a much better way to manage your mortgage and your personal economy. Don’t allow yourself to get ”in debt up to (your) eyeballs” and barely able “to pay the finance charges.” www.TheMoneyForLifeBook.com
Posted in Money, Personal Financial Management | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Benjamin Franklin on Money and Life…
February 16, 2008 | Author Dr Agon Fly
I will attempt to lighten up these blog posts during the next few weeks with some of the wit and wisdom found in Poor Richard’s Almanac by Dr. Benjamin Franklin. These brief quotes and quips will be added at the end of each post and occasionally interspersed within the post when they relate directly to it.
Let me know if you find this helpful, a relief or an annoyance. Thanks…Dr Agon Fly
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“There are three faithful friends – an old wife, an old dog and ready money.” Poor Richard’s Almanac
Posted in Money, What Others Say | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Financial Facts, Figures and Falsehoods…
February 16, 2008 | Author Dr Agon Fly
Have you ever been approached (or accosted) by the “financial planner” at the local branch of your bank? If you were, the person you spoke with may have suggested that you buy an annuity, buy some mutual fund shares, open an IRA account, buy some term life insurance or start a SEP retirement plan (if you owned a small business.) What that person most likely wouldn’t have suggested is that you buy cash value life insurance.
That may not seem strange to you until you discover that the bank itself relies on cash value life insurance to provide its own financial foundation. Some banks own so much cash value life insurance that the actual cash value in those policies exceeds 50% of their tier one assets – the assets that determine the bank’s stability in the eyes of investors and regulators. A majority of banks hold substantial amounts of their tier one assets - ranging from $43 million to over $13 billion and growing - in cash value life insurance policies in 2006. Major NYSE and NASDAQ non-banking corporations also rely on cash value life insurance to support their retirement plans, executive compensation and balance sheet.
Why is it, do you think, that the financial businesses – including the Wall Street gang - which themselves rely on cash value life insurance as a significant part of their own financial foundation, do not recommend that you do the same?
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~ Could it be because they believe that you can’t understand the power of this product because you are just a “consumer?”
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~ Could it be because they believe that your assets are just not significant enough?
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~ Could it be because they believe that you don’t have enough income to even start such a plan?
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OR
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~ Could it be that selling cash value life insurance is simply not as profitable for the advising company as selling those other products?
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~ Could it be that the advisors in those companies are not taught and, therefore, do not understand the values and benefits that accrue with the ownership of cash value life insurance?
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~ Could it be that the advisors themselves are disincented to teach you about and sell you cash value life insurance?
Successful businesses, individuals and families own significant amounts of cash value life insurance. They did not acquire their policies all at once. You have to excavate in order to lay the foundation for a building. You also have to prepare to build a financial structure. Just as the banks rely on cash value life insurance as an integral part of their tier one assets, individuals and families need to incorporate cash value life insurance into their tier one assets – those assets that detemine your ability to weather the financial storms that regularly assault your financial structure.
Would you like to know how? Visit www.TheMoneyForLifeBook.com
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Posted in Money, Whole Life Insurance, You BE the "Bank" | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Can You Afford It?
February 15, 2008 | Author Dr Agon Fly
I gave a talk this morning at a Kiwanis Club that is very active with its youth group, K-Kids. The talk is entitled “How to Say ‘Yes.’ with Confidence when the Question Is ‘Can I Afford It?’” The aim of this talk is twofold;
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to make the audience aware of the basic premise of the Debt Paradigm (You can have everthing you need and anything you want as long as you have enough credit), and
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to – hopefully – change a few minds about that, and share some basic ideas about how to deal with the money that flows through their lives.
The most basic fallacy of the Debt Paradigm is this: when you purchase something with credit it’s like the snake eating its own tail,
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~ you are spending money you don’t have,
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~ enslaving yourself to a lender and, worse,
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~ you are paying interest on the money you have not yet earned, devaluing your future earnings and putting yourself at great peril.
Just a few years ago the people who offered this approach to lending hung out on street corners and in bars, were called “loan sharks,” used crow bars and ball bats to enforce the terms on their loans, and what they did was illegal in all 50 states. Today, it is common practice among banks and finance companies, Wall Street’s pirates and the local “payday loan” storefronts. It’s common practice because our not-so-smart congress rewrote the law to allow it, and because it’s profitable for the Behemoths who lobbied for such a law. It is not profitable for you; it is counter-profitable. Instead of ball bats there are bill collectors and bankruptcy.
Discover how to avoid the dungeon of debt that this approach to money creates in Money for Life…in good times and bad – www.TheMoneyForLifeBook.com - and, if you are like some of the Kiwanis members who approached me after the talk who already practice this method, give a copy of this book to your children, grandchildren, friends and neighbors. You’ll be their hero just as the Kiwanis members are heroes to their K-Kids.
The Fouth Pillar of every successful financial structure is creating a legacy of your wealth and wisdom. The Kiwanis does this through their K-Kids program. How are you doing it? Try this www.TheMoneyForLifeBook.com
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The Financial Satisfaction Survey runs through the end of the month. Check it out – it takes just two minutes to complete – Click here to take the survey…
Posted in Money, Personal Financial Management, The Four Pillars | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
The Economic Stimulus Package of 2008…
February 14, 2008 | Author Dr Agon Fly
The economic thinking – or lack of it – that comes out of Washington DC gets more perplexing as time goes by. Value-challenged do-nothing Democrats and weak-kneed Republicans who have lost their way passed legislation that dumps $160 million into the economy from which it was taken in the first place. They call that economic stimulation. It sounds alot more like electioneering to me. Why else would the Hatfield Democrats and McCoy Republicans agree?
In the meantime the US Senate is spending thousands of hours and dollars talking at (not to) professional sports personages and ignoring the clear and present danger to the economy posed by our dependence on international idiots like Chavez and Ahmadinijad; pretending that the Social Security and Medicare Systems can be fixed with higher taxes - and “universal health care” can be added in - eventually requiring a 50% rate on all earnings including capital gains just to support these three programs; turning their backs on any kind of true tax reform; trying to convince us that Congress can redistribute wealth through the tax system so the poor get richer and the rich get poorer – all the time diguising and protecting their own wealth accumulated from lobbyists, lucrative speaking engagements, book deals for books about nothing, insider information that turns many Congress Persons into multi-millionaires; and pork barrel set-asides that seem to magically create Congressional wealth as they slither through the legislative process.
I am not a pessimist about much. I am very doubtful of the good intentions and the intelligence of the US Congress. The Democrats are paralyzed by the unreasonable and irrational “Bush Derangement Syndrome” – if an idea comes from the White House or could make the President look good, it’s gotta be bad. The Republicans have so lost their way that they fail to hold to their most basic economic principles and spend our money as if they are in Las Vegas and our tax dollars are their personal dollars to be gambled away.
Nothing of importance is getting done, the economy and the American people are being damaged while the bullies in Congress are forcing money into their pockets or their re-election campaign accounts with vigor and impunity. What to do? You can hold your personal rep responsible, vote for someone else – it’s a challenge on the political side.
On the personal side you can change your mind about money and adopt a personal economic plan that lets YouBeTheBank – www.TheMoneyForLifeBook.com -and gain control of the money that flows through your life. You can put your money in protected whole life insurance policies
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where it grows tax free
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is available as a source of borrowing where all the payback is to yourself
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as a source of ready cash for emegencies or dream fulfillment
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as a source of tax free or at least tax advantaged income whenever you want it
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is a way to pay your wealth forward tax free when you die to those you care about.
www.TheMoneyForLifeBook.com could do more to save the American economy than all the legislation the inept US Congress can create out of its collective fantasies. You owe it to yourself to know more and to own more.
Posted in Money, Taxes | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Why Be Your Own Bank – Revisited…
February 13, 2008 | Author Dr Agon Fly
In the first installment on this topic we focused on:
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~ the struggles of the banking industry
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~ the impending failure of both small and large banks
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~ the sub-prime lending debacle
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~ the difficulty individuals without top tier credit ratings face obtaining credit of any kind
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~ the general difficulty that this situation creates for everyone
In this installment, we focus on what is, perhaps, the prime reason for you to consider starting your own “bank” by using cash value life insurance as your foundation. When you own a quality cash value life insurance policy that accumulates money that you – and you alone – control, you have a source of borrowed funds that profits you – and only you.
When you borrow from others you make them wealthy. In a recent post – The True Cost of Financing – we demonstrated how the typical American wastes money by giving it to retailers. The truth is that our entire economic system today is designed to make others wealthy by having you pay them interest. Not only that, the interest is paid on money you have not yet earned. Get your mind around that. It’s important. Credit cards are the biggest offenders. Auto loans, retail store charges and even mortgages follow close behind. You borrow money you have not yet earned and then you have to pay your earnings PLUS interest to a Behemoth that cares not one nit for you. You are a source of wealth for them. Thay are the source of your poverty – now or in the future.
The reason personal economies fail is because they incur debt-to-others. The boomers are headed for disaster because they have bought into the “Debt Paradigm.” They believe they can have everything they need and anything they want as long as they have enough credit.
They have lost sight of the basic truth that debt is bad for them. They listen to the merchants of misinformation and the financial snake oil sales reps who convince them – because the reps themselves are deluded and convinced – that “the market” will take care of them “in the long run”; that mortgages are good things; that debt is the path to wealth. It’s all BUNK!
The only way to have a personal economy that lasts in good times and bad is to have a foundation of ready money that you control and that you can use to support the Four Pillars of your – and every – successful personal economy. (Visit the Four Pillars page.) That’s what we mean when we say you need to manage your money in a way that lets YouBeTheBank.
Please, visit www.TheMoneyForLifeBook.com There are a few people in the country that understand the problem and the solution and this book explains it well.
Posted in Money, Personal Financial Management, Whole Life Insurance, You BE the "Bank" | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Money and Life Insurance…
February 13, 2008 | Author Dr Agon Fly
Will Rogers said that a person “…who doesn’t believe in life insurance deserves to die once without it.”
Where would America be without Will Rogers, Benjamin Franklin and Mark Twain? They have collectively created a cache of common sense wisdom that Americans rely on every day.
But, more to the point of this blog, where would America be without life insurance? From the time of the Roman Empire, when the first recorded mutual societies were formed to provide life insurance benefits, through the modern era of Benjamin Franklin, Mark Twain and Will Rogers and until today the wisest among us have known and promoted the values of cash value life insurance. Winston Chrchill suggested that the word “insurance” should be engraved above the doors of every family residence.
These sages were not talking about some abberation of the permanent cash value life insurance that they were familiar with. They were talking about cash value permanent life insurance. They would never have recommended that you buy term insurance and invest, putting your money, your family and your future at risk. The idea that you should buy a policy of life insurance that would have you paying premiums for decades only to expire or be cancelled for lack of cash values when you were aged and needed it most would have been abhorrent to them. Even the Greeks of Aristotle’s time recognized the value of money placed in a secure and growing account for the future benefit of the owner and the owner’s family.
Permanent cash value life insurance is the foundation of wealth for thousands of American families. In many cases it is the only money legacy that a parent has to pass on to a child. American businesses buy hundreds of millions of dollars worth of cash value life insurance every year as a secure depository for the money that they control and for which they have fiduciary responsiblity. Banks are among the largest buyers and owners of permanent cash value life insurnace. Professional atheletes, entertainers, and corporate executives put millions of premium dollars into cash value life insurance every year. In other words, the people who really know how money works rely on cash value life insurance as the foundation for their wealth.
You do not have to be a CEO with an outlandish compensation plan to use the strategies that cash value life insurance allows. You just need to start. Joe Sabah, a wise man living in Denver, Colorado fequently quotes one of his students; ”You don’t have to be good to start, but you do have to start to be good.” www.joesabah.com
So it is with cash value life insurance and its amazing potential. You will never be sorry that you know more than you know now or own more than you own now. www.TheMoneyForLifeBook.com
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The number of folks taking the Financial Satisfaction Survey is growing – join them and let your voice join the chorus. Follow the link –>
Posted in Money, Personal Financial Management, Whole Life Insurance | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »
Money Saving Tax Tip for Seniors…
February 12, 2008 | Author Dr Agon Fly
The 2008 tax year offers couples who earn less than $65,100 ($32,550 for singles) a zero percent (o%) capital gains tax rate. That’s right – NO TAX. Therefore, the senior who sells an asset that would normally create a taxable event can get by with no tax at all.
While I’m not a great fan of structuring your personal economy around the tax laws, it only makes sense to take advantage of a tax laws that keeps your money in your pocket instead of siphoning it off to the IRS. Let’s use an example. Assume you have some stock that you’ve been holding for a few years (or decades). You could sell the stock and make $30,000 as a capital gain. At the 5% capital gains rate you’d save $1,500 in taxes. Now, you can take that entire $30,000 and buy another investment and postpone the gain, or perhaps buy an annuity and convert the enitire amount into a guaranteed income and receive that income entirely tax free. (Of course, you’d need the advice of an independent investment professional and perhaps your accountant to make sure all the rules are followed.)
This is one more example of how an advisor who is familiar with Money for Life strategies and tactics can save you money and then convert the money saved into a benefit for you.
Forbes on-line recently published a clear article on this topic. It mihgt be worth your time to review it
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www.TheMoneyForLifeBook.com makes a great gift for someone who is struggling with their personal economy and finances.
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The Financial Satisfaction Survey is creating some very interesting insights. Take just two minutes and put in your two cents worth –>
Posted in Money, Taxes | Tags: 401(k) plans, 801(k) plans, agon fly, annuities, annuity, bank, banker, banking, banks, be the bank, become your own bank, becoming your own banker, bonds, book on money, books on money, books on personal finance, circle of wealth, debt, debt elimination, debt reduction, debt to others, disability income insurance, Dr Agon Fly, Dr_Agon_Fly, financial, financial advice, financial advisor, financial planner, financial planning, health insurance, housing market. stocks, how to thrive, infinite banking, insurance dividends, investing, jeff reeves, jeffrey reeves, leap system, life insurance, long term care insurance, mass mutual, mass mutual insurance, massachusetts mutual life insurance, Money, money book, money books, money for life, money under management, mutual funds, mutual insurance, mutual insurance company, nash, nelson nash, new york life insurance company, new your life, northwestern mutual life, passive income, personal financial books, pirates of manhattan, r nelson nash, Retirement, retirement income, retirement planning, saving, stock dividends, stock market, Taxes, term life insurance, The Four Pillars, the guardian life insurance company, thrive, universal life insurance, variable life insurance, Whole Life Insurance, Who’s helping you, why buy whole life insurance, why whole life insurance | No Comments »