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Posts Tagged ‘conventional wisdom’

The foolishness of refinancing to "save" money is one of the most insidious of the conventional wisdom shibboleths. Radio, TV, the internet, even your smart phones attack you with this flawed idea. Read the rest of this entry »

Economic Education

Economic education takes time and attention to common sense thinkers and writers. You often find these folks on the outs with conventional wisdom. You regularly find them on sites and forums like Here is an example.

Money, Power, and Old Age

by Jan Iwanik on February 18, 2011
I suspect that funded retirement plans like American 401(k)s British private pensions, or Polish open pension plans (OFE) cannot survive in a centralized democracy. The only alternatives are unfunded schemes such as American social security, British state pensions, or the Polish Social Insurance Institution (ZUS). But such systems naturally lead to a conflict of interest between age groups, out of which the older generations emerge victorious. As a result, an internal gerontocracy is formed within the democratic system. This new and more oppressive system may prove to be more sustainable than the democracy itself.

Read the rest here -

The Seven Mysteries – aka Wealth Builders

Moving from Bad Habits to Good Practices


The difference between a habit and a practice is awareness.

If a habit relies on thoughtless performance, a practice relies on thoughtful performance.  The behavior can be the same, e.g., locking the doors at night.  Awareness makes the difference.

Conventional wisdom means that you do what everyone else is doing and think what everyone else is thinking because that’s what they are doing and that’s what they are thinking.

Do the Behemoths – that grow wealthy by convincing you to follow conventional wisdom – do they want you to be more thoughtful?  Of course not.

Is there a more thoughtful way to accomplish what you want to achieve when it comes to creating wealth and managing your personal economy?  Of course. It’s called common sense.

The Seven Mysteries aim to tear down the wall between Conventional Wisdom and Common Sense so you can thoughtfully grow rich without risk and create wealth without worry.

Read on…

Mystery No. 1 Pay Yourself First – But Don’t Count Your 401k

“Pay yourself first” is an axiom that’s been around for centuries – perhaps millennia. What it means is that your personal economy rests on the foundation of a personal savings plan – as opposed to an investing plan – and recognizes the need for a solid base of readily accessible capital.

The issue is not whether or not you need to put a capital acquisition strategy in place. You need to. The question becomes where you should put the money. Conventional wisdom from the Debt Paradigm say you should “max out your 401k.”  This is extremely bad advice for you but great for the Behemoths.

The problems with relying on 401k’s, IRA’s and the like as your capital base are manifold:

First and foremost, you give up control of your money; first to your employer, next to the investment companies that manage your money, and finally to the IRS

  • If you can get to your money at all, tax qualified plans restrict how much of your money you can use, and often restrict how or whether you can use it
  • The money you withdraw – as opposed to borrow – is subject to penalties and/or taxes
  • You have to repay borrowed money plus any fees associated with any loans you take within five years or pay the penalties and taxes referred to above
  • You normally have to ask permission or get approval to get your hands on your money
  • Your money is only available after much paperwork and then only on a restricted basis when you need it for any other reason such as an opportunity, a crisis, a child’s education, a parents long term care…

Savings accounts, certificates of deposit, money market accounts, and similar financial instruments have a place in your portfolio, but they too have shortcomings as base capital. To access the money in these funds you must deplete them and therefore lose their ability to earn interest.

Granted, the money in these funds is readily available if you lose your job and you need money to see you through to your next job or get a new business up and running.  But, if the next job comes later rather than sooner, or the new business hits a bump in the road, your capital could be depleted and you would have no other resource to fall back on – except perhaps also depleting the 401k that you rolled into an IRA when you left your employer. And if that doesn’t last…

Mutual funds, real estate and any other investments (remember, investments are based on pure unrelenting risk) are subject to market conditions (think 2008 – 2009), and may not be fully liquid.  The only way you can get your money out of them is if you sell them or borrow against them.

Moreover, you have to beg permission from a lender to borrow against your personal assets.  Add to this degrading process that neither selling nor borrowing from others preserves your capital base and both deplete your resources.  Worse still, the costs of borrowing drain your pocketbook while it fills the coffers of some Behemoth.

What’s a person to do? The answer is to step away from the Debt Paradigm and gain a new perspective. We call this new perspective or paradigm The Money for Life Model. It is a way for you to emulate the conservative financial strategies applied by savvy Americans and some of the most reliable corporations in the world for the past 150 years or so.

There are also financial instruments that allow you to build a fortified base of capital that you can use to create true wealth. From a very practical point of view, these products allow you to become your own banker, finance your life, and release yourself from the impoverishing clutches of the Debt Paradigm.

An Open Letter…

Dear Kay,

At we are committed to re-educate America about the power, flexibility, and versatility of dividend paying whole life insurance and the extraordinary benefit of participating with like-minded people in ownership of mutual insurance companies.  To this end, we have sacrificed the past several years of our life to write and publish books, blogs, and articles that aim to enlighten and inform.

Whole Life Insurance from Mutual Life Companies…

Gaining the insight and information about whole life insurance and mutual life insurance companies is difficult for insurance and investment advisors.  Many, if not most of them have been misinformed and even lied to about this product and its application.

It is even more difficult for everyday Americans to uncover these secrets when their source of information is produced by detractors in the ill-informed popular press, from talking heads like Suzie Orman and Dave Ramsey, and from often inaccurate internet sites.

Uncovering Green Shoots of Ideas and Ideals Shrouded by Behemoths…

I wish the ideas and ideals we write and talk about–ideas that are the foundation of the wealth and growth of the personal economies of Americans over the past two plus centuries–were not burdened with decades of deceit and disinformation from Behemoth detractors and competitors whose only goal is to filch control of your money or sell you their next book.  Unfortunately, they are.

Many seem to be struggling to escape the conventional wisdom that denies the value and benefit of whole life insurance and mutuality.  We understand that.  We can continue our dialogue.  Unfortunately, there isn’t enough time left to me in life to answer every individual consumer question and mentor every advisor that seeks my guidance.

The Source Book of EUREKONOMICS™…

So, here’s my suggestion.  If you wish to pursue a relationship and take advantage of my 40+ years experience helping Americans achieve true financial independence, then I ask you to read and study Money for Life! before posing your questions about EUREKONOMICS™.  I am confident that Money for Life! addresses the vast majority of your concerns.

In other words, I am willing to address your concerns if you are willing to study the EUREKONOMICS™ Model for Creating and Managing Your Personal Economy with the same diligence that you are employing to unearth reasons to deny the validity of what we teach.

By Jeffrey Reeves, MA, EUREKONOMIST

John Mauldin’s November 26, 2008 Weekly Eletter begins with the following quote:

“It will therefore be crucial that you see the world anew. That means looking from the outside in to reanalyze much that you have probably taken for granted. This will enable you to come to an understanding. If you fail to transcend conventional thinking at a time when conventional thinking is losing touch with reality, then you will be more likely to fall prey to an epidemic of disorientation that lies ahead. Disorientation breeds mistakes that could threaten your business, your investments and your way of life.”

– James Dale Davidson and Lord William Rees-Mogg, The Sovereign Individual, 1997

The Money for Life Model of wealth creation and money management challenges convetional thinking [we refer to it as conventional wisdom] at every step.  As an alternative to the lemming-like behavior that conventional wisdom engenders, The Money for Life Model suggests that awareness is the first essential characteristic of intelligent financial decision-making.  Watching and listening to the commercials of the financial Behemoths – including the advice from their minions – tells you only what they wish you to know.

It’s 2008.  Look where their advice has gotten us…and them!

It’s time to become aware of the reality that the Behemoths [any large business, union, government bureacracy or NGO] wants only to gain control of as much of your money as possible - regadless of whether or not that serves your best interest.

By Jeffrey Reeves,, ltd.

My apologies for such a long absence. is launching its new web site.  Although it is fully functional, there are more than a few additional capabilities that are being developed and added daily and weekly.  It’s a time and energy consuming project.


The turmoil in every market: real estate bubbles bursting, the motgage mess, bank failures, GM/Chrysler/Ford facing bankruptcy, and on, and on…all are the result of a failed paradigm that convinced Americans to delegate their own wealth creation and money management to the Behemoths -

  • the Dolts in DC who manage to increase their own wealth by taking more of yours,
  • mutual fund managers who don’t know what they don’t know,
  • investment advisors who have only the minimal registrations and licenses to compliment the brainwshing they receive from their Behemoth bosses,
  • union leaders who see their RIP engraved on history and scheme to keep alive a system of relating to capital that can only be described as self-serving,
  • banks and credit card grantors that have manipulated the Dolts in DC to serve them instead of American citizens.

I’ll write a book about this someday but for now here’s an article from InvestorsInsight that articulates a piece of the problem.


Gary D. HalbertForecasts & Trends E-Letter

“Buy-And-Hold” Bites The Dust – Now What?

by Gary D. Halbert

November 11, 2008


  1. Economic Overview
  2. The Conventional Wisdom Was Wrong
  3. The Shortcomings Of Index Investing
  4. Are Low Fees The Key To Investment Success?
  5. Risk Management Is Crucial


In the newsletter business, it’s rewarding to see market action reinforce the advice you have been giving in your publication. Ever since I started writing this E-Letter, I have warned of the perils of passive “buy-and-hold” investing in general, and “index investing” in particular. While adherents to these strategies like to trot out long-term charts and graphs supporting their case, I have always warned that passive investing can result in major losses at just the wrong time from the investor’s perspective.