Wealth

How to Use and NOT Lose it

John F. Kennedy wasn’t necessarily known for his timidity. Fact is his boldness was so attractive to Americans they elected him as president of the United States. One bold idea which JFK espoused was, “It is a paradoxical truth that tax rates are too high and revenues are too low---and the soundest way to raise revenues in the long run is to cut tax rates now.” Isn’t it interesting that the vitalistic truism which states that “less is more” holds true even when dealing with taxation?

But you see wealthy minded men and women have always understood this concept. Faustino Ballve perhaps said it best when he wrote, “Free trade or the free market means the sovereignty of the consumer.” Wow!

Conventional methods of wealth generation; working harder, working longer, investing in: securities, bonds, money markets, capital ventures, real estate, 401(k), IRAs etc, don’t always work because these methods are mechanistic and therefore cannot project the vitalistic component of the market.

That is because in the real world, vitalism (that ever present force of human peculiarity, preference and down-right precarious nature) can activate market corrections, recessions, depressions and bank runs without any mechanical precision. This vitalism is precisely the Achilles heel of all conventional methods which are by nature conditioned to work as long as things continue to function as they have in the past.

But vitalism can trigger financial losses, create bankruptcies and wipe out businesses, families and lifestyles as we all observed in 2008 and still can observe around the world today. That is because vitalism is the unknown, and therefore the unmanageable risk which is inherently confined to each and every conventional method of wealth generation and/or preservation known to mankind today.

But what if you could overcome the unknown risks of the market by replacing them with a known and manageable risk? Wouldn’t that change the way you could build wealth?

Absolutely! You see, with a known risk, you can manage the consequences which that risk will produce and therefore the risk in no longer a true risk but a known fact.

The known risk being spoken of here is your death. Death is costly but it is also inevitable. But by facing, instead of ignoring, this known fact you can manage accordingly and in the process you can create a tremendous amount of wealth between now and the inevitable time that your death occurs. And if you do it properly you can enjoy the benefits yourself along the way!

This type of wealth generation requires the purchase of participating whole life insurance. Now, before you throw up your hands in disgust, consider this simple fact: Life insurance companies use your premium dollars much the same way banks do. They loan those premium dollars you pay to them out to others who will pay the company back more money than they borrowed. This is way insurance companies can afford to pay your death benefit to your beneficiaries. But as your death benefit grows so does something else. This something else is called cash values and it’s imperative to appreciate that your cash values grow and can be used without taxation.[i]
These cash values can be borrowed by you without affecting the yield which the company guarantees to increase your policy by annually. And furthermore, as you pay these cash values back, you can benefit even more by paying them back with extra interest. Each time you pay the insurance company back in this way the amount available for you to borrow increases! This increase can become very profitable for you; in fact this is the exact same way that banks honestly use your money to create huge profits for their shareholders.

Now, those who derive some form of pleasure in paying interest to others or are extremely excited about paying taxes on the interest they are earning conventionally, typically aren’t interested in proceeding any further than this. Neither are those who really hope and trust that their government will continue to find a way to support the act of stealing from the working class in order to pay off the generation they just finished robbing.

But if you aren’t really excited about these government options then you need to pay real close attention. Don’t let anyone confuse you about what’s going on here. It has nothing to do with rates of return or interest rates. Notice JFK spoke of cutting tax rates? That’s because he was bright enough to know that historically, whenever tax rates have come down, tax revenues have gone up. So, please don’t get fixated on rates. It isn’t the rate that matters it’s the revenue generated and if you want to generate a lot revenue then the rate of return should NOT be your main focus. Your main focus should be on the return of your capital.

So, here are the pertinent particulars:
1) Don’t be afraid to capitalize---pay yourself first. Save as much money as possible and pay it as premiums into properly designed life insurance policy(s.)
2) Be honest with yourself--- don’t steal.
(a) When you borrow against your policies, pay yourself (the policy) back like you’d normally pay someone else if you’d borrowed their capital.

Enjoy a wealthier and more productive life and leave a legacy to those you love.

Happy New Year and many blessing to you and yours.

By Tomas McFie

About the Author:
Tomas McFie DC, PhD has owned 4 different wellness clinics in 3 different states in his 25 years of practice. Having learned to Use and NOT Lose his own capital resources, Tom founded Life BENEFITS, Inc., to coach others how to do the same. Tom has helped hundreds of clients become extremely wealthy. Contact him www.life-benefits.com/contact.htm or call 1-866-502-2777.

[i] New life for Life Insurance, Medical Economics, March 2009