You Can Retire Wealthy

Here's what your common financial planner needs you to think: they can help you get to the Holy Land (ie: flourishing retirement) by buying stocks and/or open-end funds. This is completely false.

In theory, it could be reasoned to be intelligent fiscal advice. Commit to a comfortably calibrated portfolio for the long-run. Adjust your portfolio as you go along and do not forget it is alright whenever the market dips because now, when you purchase additional stocks or mutual funds, you're purchasing at a more modest price. This is known as dollar cost averaging. I don't know about you, but if it were my choice, I'd rather my portfolio didn't diminish at all.

Naturally, portfolios do diminish in value, in a free market, stock costs ascend and then they decline. The supposition is that these prices will curve upward over time and whenever you're balanced you'll end up counterbalancing the stocks that decline in value.

Here's the sixty-four thousand dollar question: Do you want your future to be prosperous? If your hope is that your retirement will be as certain as possible then how come you invest in an environment that resembles a complete madhouse? Nothing more than a wild roller coaster ride?. I'm not alleging you should completely ignore these investment strategies but, I'd really like to know if you're like me? Aren't you disgusted and fed up with the same old empty words and regurgitated financial advice?

I've analyzed more books than even I would care to admit, all of them about creating wealth and financial prosperity. I will not cite the writers or the titles, but I'll sum up their advice: Pay yourself first, at let's say a rate of 10% of your annual income, then invest it into a well-adjusted portfolio (chiefly comprising of mutual funds, fancy that!). Hold off awhile and you'll be just hunky-dory in retirement. Talk about fiction!

There are a few very rudimentary troubles with the fabrications they're selling as financial advice. Let's accept for one second that you are able to commit 10 percent of your income aside each month. You and I both recognize this is inconceivable for just about everyone. We're Americans and goddamn it, if whatever is left alone after those knuckleheads in Washington assume is fair, then we're going to spend it,most likely on the essentials like food, clothing, rent.

And addressing those champions in Washington, they would like to have their cake and eat it as well. They order you to save money and drop money in the same breath. You've got to spend money in order for our economy to flourish. You need to save up money so they do not have to attend to you once you choose to take it easy and retire.

Let's suppose for the interest of contention that you've kept 10 percent of your income and you choose to position it in a decent mutual fund. Which mutual fund or stock do you purchase? The stocks that will ascend or the ones that will crash? On that point lies the trouble. Just about all mutual funds will go upward over time, but which ones? Global, public utility, big cap, little cap? Here's an idea. Just throw some money into all of them.

This scheme does nothing in the least to benefit you. By the time you're finished balancing your profit, and anting up the commissions you owe to brokers, you can't even beat out inflation. Modern times have changed. You're not going to build income in the stock market . The market represents profits to establishments, corporations, pros and insiders, not the average Jack or Jill.

Your retirement plan should be treated like a business. I'll tell you why. If you want to achieve your retirement goals, you need to put more efforts into managing your accounts. Take control of your future and leave behind those mutual fund managers. They don't have your best interest in mind.

I created a system called TRACS, or Total Retirement Asset Control System. I want to strongly encourage you to get involved and participate in the most important business you'll ever manage, your retirement planning.

First, let's look at the specific advantages of life insurance as an alternative retirement planning vehicle and/or supplemental retirement plan:

Unique tax advantages - Premiums can be paid with before tax money (once you set up a business), that grows tax deferred (not tax free); the money can be withdrawn tax free via policy loans that are never repaid, and the money transfers tax-free to heirs. In essence, you can beat the tax man in all four stages of retirement planning.

Protection for family - In the event of a premature death, the insured's family is protected and the client's estate value increases the minute the policy is placed in force. Very few people can honestly say they have no need for life insurance. Life insurance is the ultimate wealth transfer vehicle. Case in point, Malcolm Forbes had 55 million dollars in life insurance at his death.

Self - Fulfilling plan - By adding a disability rider, the plan's premiums will be paid in the event of a disability. A disabled policy owner will continue to see his cash value grow as if he were putting money in the plan himself.

The Banking System - By taking out policy loans and making purchases that would ordinarily require a monthly payment, policy holders have the ability to recapture the entire purchase price plus all interest, and create arbitrage in the process. A typical car purchase goes from an account depreciation move to a move that will instead turn a 12 to 14% return, just from buying a car. A
more powerful strategy is to borrow from the policy, create arbitrage (spread of money) within the policy and reinvest the money in an appreciating investment.

Mortgage Acceleration Plan - Most Americans are unaware that pulling equity out of a home and reinvesting that money in a tax deferred account, will actually accelerate a mortgage payoff, and in many cases, with no more money out of pocket.

Two Columns of Growth - By taking out policy loans that have the ability to create arbitrage and reinvesting in other outside investments the policy holder can actually have money growing in two columns at the same time. For example; let's say you have $100,000 you can borrow inside your policy. Historically the policy has returned 9% on average. The policy holder borrows the
$100,000; the money will still be credited 9% over the year or $9,000. Borrowing implies an interest rate. This rate is tied to bonds and we will assume you can borrow at 6%. You borrow the $100,000 at 6% or $6,000 per year; you turn around and invest in Deeds of Trusts (undertow investment) paying 12%. You earn $12,000 in the second column (this column is typically taxable while the insurance side is not). The policy holder has just accelerated the speed of which his money grows.

Three Columns of Growth - After learning a bit about home equity arbitrage you will understand that your home will appreciate at the same rate regardless of the underlying home loan. You borrow your equity from your home, you reinvest the money in an "undertow Investment" that pays 12%, you take the after tax returns on the money and put it into a life insurance contract, you borrow from the life insurance contract to reinvest in another "Undertow Investment" that has a 20% IRR.

Here's a smart investment strategy. Borrow against your life insurance policy - turn your policy into actual cold, hard cash. Use that cash to purchase a real estate property, outright. You hold the deed. You get yourself a monthly renter, and you use that monthly rent to repay your debt. You are paying yourself. That's right. The money you put back into your policy is actually building your retirement savings. You pay the money back at about 3% additional interest. You see the growth of your money. You pay yourself back when you want to. You've just grown your money by at least 3%. Don't have a tenant? No problem. You make payments on your own schedule, when you want to. This is a simple strategy to grow your monthly cash flow as well as build your wealth.

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