REAL WEALTH

Gold, Silver, Real Estate, have often been classified as REAL WEALTH. But as folks who owned Real Estate in 2008 have painfully found out, an asset is only an asset when somebody else wants to own what you have more than you do… and is willing to exchange something more valuable to you for that asset.

Today you can hear all kinds of horrific possibilities about what is going to happen if the debt ceiling isn’t raised, if the budget isn’t balanced or if the Fed keeps printing more money. But REAL WEALTH is always constant. It cannot be destroyed by the externals.

In the past Europeans found that exchanging colored beads for American Native furs produced REAL WEALTH. Many believe that the Europeans took advantage of the American Natives in this trading relationship but each side valued what they received in the trade more than what they gave up, so who should be the judge? (By the way my great grandmother was Cherokee so don’t get too opinionated about what I’m trying to bring to light here.) Each side took home what they considered to be more valuable than what they had given up. Both parties created REAL WEALTH.

Stocks have also been classified as REAL WEALTH, and as long as the stock is worth more than what you paid for it I suppose this could be true. But what is absolute in this world? A piece of stock just like Real Estate, might not be worth as much as you paid for it 10 years from now. Gold and Silver are the same. You may pay $1600 for an ounce of Gold today and 10 years from now it could only be worth $300. Historically, an ounce of gold was selling for over $850 in 1980, but shortly after that it traded for between $300 and $400 an ounce for nearly two decades. REAL WEALTH then is not something that in necessarily tangible.

I was a camera man throughout my junior high years taking pictures for the year book. I went to all the games and school events but always as the camera man and therefore never really “experienced” those events on their own. In high school I put away my camera and actually participated in some of those events. What a marked difference! This is the same type of difference that one experiences when they possess REAL WEALTH vs. an accumulation of Money, Gold, Silver, Real Estate, Stocks…etc.! REAL WEALTH can never be taken away from you. It’s yours to the grave.

That is why participating whole life insurance is truly REAL WEALTH. More than any other thing that you can purchase today participating whole life insurance is yours to the grave! And then it becomes money which can produce REAL WEALTH for those you love and care for.

That’s right. Participating whole life insurance can never be taken away from you if you simply pay the premium that you agreed to pay prior to you purchasing it. That isn’t the same with anything else in life. Ask those who lost their homes in 2008 and 2009, or those who purchased gold for $850 in 1980 and then had to sell it at $300, or the millions of those who’ve lost money in their 401(k) or IRA or mutual funds or the stock market. Those assets are uniquely different from participating whole life insurance.

But even on top of this unique difference is a little exploited fact. This fact is about how you can use your cash value build up in these policies. You can increase your REAL WEALTH in this life as well as leave a large legacy for others if you will use loans from your cash value build up to finance those things in your life that you are already spending your money on. Doing so will increase your positive cash flow and increase your REAL WEALTH. Want to learn how to do this? Read my book Prescription For Wealth and then contact me.

by Tomas McFie

Watch the latest Life Benefits, Inc. video "Tidbits" with Dr. Tom McFie