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
Wednesday, December 28, 2011
Wednesday, December 21, 2011
Wealth
Why and How
Margaret Thatcher, the late Prime Minister of England, once said, “Nobody would remember the Good Samaritan if he’d only had good intentions. He had to have money as well.” There’s no doubt about it, the Good Samaritan was wealthy. But wealth isn’t just having a lot of money. Wealth is producing value for others like the Good Samaritan demonstrated.
The average American has $56,000 to $69,000 of real saving by the time the
y are 65. [i] And the reason for this paltry amount of capital at this stage in life has nothing to do with where you live, where you were born, what color you are, or who you parents are. The reason has to do with some absolute truth(s) which have been either; misapplied, ignored or never learned.
The first of these absolute truths is: You need to Pay Yourself First.
Few folks realize the ancient wisdom in this three word axiom. But, in his classic book The Richest Man in Babylon, George Clason discusses what "paying yourself first" means. In his book the gold merchant tells the egg merchant to keep one egg out of every ten eggs he collects for himself...not to spend but to produce wealth for himself.
At first glance this may seem a tad selfish and foolhardy but this is the beginning of capitalization without which wealth can never be produced. Let me say that another way. Without capital the economy, your economy, will crumble. And that is the reason you see our current economy in such a fearful mess today because there is not enough capital to support the spending that has and continues to occur. So if you want to produce more value for yourself and for others you must begin to pay yourself first.
A second error which is commonly committed violates the simple maxim: Don’t Spend More Than You Make. I believe Robert Kiyosaki defines “middle class” better than anybody else when he defines it as the class of people “who buy liabilities.” Be it cars, boats, homes, clothes, trinkets or whatever, American’s seem to want it all or at least some of all there is to have. This middle class trait is responsible for the fact that as recently as 2007 the average American family was spending 3% more than what they were making. This spending doesn’t build an economy it destroys an economy by destroying the capital base on which all sound economies are built...savings.
The third biggest blunder is underestimating The Power of Compounding Interest (or as Albert Einstein referred to it “the eighth wonder of the world.”) Inevitably, some CPA, tax attorney or financial planner has or will advise you about the great tax deduction(s) that compound interest is when you pay it to somebody else...like with your home mortgage or a business lease or loan. But the fact remains that “you had to earn the money you paid that interest with before you can deduct it!” So the more important factor here would be: How can you pay yourself compound interest without working any harder?
This brings you to the most important fact concerning the generation of wealth which is out there and that is; “Whenever You Lose Control of Your Money You Lose Money.”
Financial wizard Warren Buffet, from Kansas, puts it this way, “Diversification is a protection against ignorance. It makes little sense for those who know what they're doing" to diversify. You see securities aren’t secure and most kinds of life insurance don’t produce anything for you except premiums until you’re dead! Annuities, bonds and money market accounts simply lock your money away where you can neither touch it nor use it without penalties, fees, and service charges; while IRA’s, 401(k) and other qualified plans only defer the taxes you owe so you can pay more later...even if you are in a lower tax bracket at the time you pay those taxes. If you haven’t done the math you owe it to yourself to do so now before you find out the hard way!
Finally, you have to deal with the financial gurus who attempt to save wretched souls from the financial hell which many are experiencing today. These opportunistic clowns swoop in and first thing they do is have you cut up all your credit cards...ONLY after they’ve been paid handsomely themselves from your very last one. Then they begin dispensing guilt in attempts to produce penance for your financial “sins” in hopes of obtaining your sacred vow to “pay cash” for everything from now. Of course the purported mission is to provide you with financial freedom for ever and ever. But these gurus are making millions off misinformed and/or ignorant folk who would benefit more from a simple explanation of how money really works.
Speaking of hell, once the gurus get ahold of you the heat is really on.
You’ll now have to work harder than ever just to make ends meet because your credit is gone. And if you keep up with all the financial antics which the gurus will put you through, you’ll burn-out! That is because these gurus have never grasped the fact that: “You Finance Everything You Purchase”[ii] in this life even when you pay cash for everything. That is because you either give up interest to others by using their money; or you give up interest you could have earned on your money if you hadn’t spent it.”[iii] There are no other options.
Consulting with hundreds of folks around the world, just like you, who are licking their financial wounds from all the misapplied, ignored or never learned truth(s) ---is not very pleasant at times. But what could you do if you would learn now how to Pay Yourself First without Spending More Than You Make and letting The Power of Compounding Interest work for you without having to work any harder than you are right now?
But realize these two important facts, until you understand why “You Finance Everything You Purchase” in this life and that “Whenever You Lose Control of Your Money You Lose Money,” then Paying Yourself First, and Spending Less (not more) Than You Make, and The Power of Compounding Interest won’t do you much good. And that is because those who control your money, the bankers, the financial planners, the money market managers, the politicians, the gurus and/or anybody else whom you’ve allowed to control your money, will make sure that they are paid first instead of you. And that means they will profit from it more than you do.
So learn to take control for your own wealth so that you can produce more value for others as well as yourself. Because, just like the Good Samaritan, the more wealth you control the more people you can help.
Have a wonderful Christmas Holiday and rejoice in the freedoms that we have.
By Tomas McFie
About the Author:
In private practice for 25 years, Dr. Tomas McFie now coaches hundreds of doctors along many other small business owners and individuals across the country on why and how to become wealthy. His book, “Prescription for Wealth,” has assisted thousands of people in understand the purpose of “why you should become wealthy.” Call him at 1-866-502-2777 or visit him online at www.life-benefits.com or just follow him on Facebook at www.facebook.com/life.benefits.inc .
[i] Employee Benefits Research Institute August 2009
[ii] Becoming Your Own Banker, R. Nelson Nash, 2000
[iii] Ibid
Margaret Thatcher, the late Prime Minister of England, once said, “Nobody would remember the Good Samaritan if he’d only had good intentions. He had to have money as well.” There’s no doubt about it, the Good Samaritan was wealthy. But wealth isn’t just having a lot of money. Wealth is producing value for others like the Good Samaritan demonstrated.
The average American has $56,000 to $69,000 of real saving by the time the
y are 65. [i] And the reason for this paltry amount of capital at this stage in life has nothing to do with where you live, where you were born, what color you are, or who you parents are. The reason has to do with some absolute truth(s) which have been either; misapplied, ignored or never learned.
The first of these absolute truths is: You need to Pay Yourself First.
Few folks realize the ancient wisdom in this three word axiom. But, in his classic book The Richest Man in Babylon, George Clason discusses what "paying yourself first" means. In his book the gold merchant tells the egg merchant to keep one egg out of every ten eggs he collects for himself...not to spend but to produce wealth for himself.
At first glance this may seem a tad selfish and foolhardy but this is the beginning of capitalization without which wealth can never be produced. Let me say that another way. Without capital the economy, your economy, will crumble. And that is the reason you see our current economy in such a fearful mess today because there is not enough capital to support the spending that has and continues to occur. So if you want to produce more value for yourself and for others you must begin to pay yourself first.
A second error which is commonly committed violates the simple maxim: Don’t Spend More Than You Make. I believe Robert Kiyosaki defines “middle class” better than anybody else when he defines it as the class of people “who buy liabilities.” Be it cars, boats, homes, clothes, trinkets or whatever, American’s seem to want it all or at least some of all there is to have. This middle class trait is responsible for the fact that as recently as 2007 the average American family was spending 3% more than what they were making. This spending doesn’t build an economy it destroys an economy by destroying the capital base on which all sound economies are built...savings.
The third biggest blunder is underestimating The Power of Compounding Interest (or as Albert Einstein referred to it “the eighth wonder of the world.”) Inevitably, some CPA, tax attorney or financial planner has or will advise you about the great tax deduction(s) that compound interest is when you pay it to somebody else...like with your home mortgage or a business lease or loan. But the fact remains that “you had to earn the money you paid that interest with before you can deduct it!” So the more important factor here would be: How can you pay yourself compound interest without working any harder?
This brings you to the most important fact concerning the generation of wealth which is out there and that is; “Whenever You Lose Control of Your Money You Lose Money.”
Financial wizard Warren Buffet, from Kansas, puts it this way, “Diversification is a protection against ignorance. It makes little sense for those who know what they're doing" to diversify. You see securities aren’t secure and most kinds of life insurance don’t produce anything for you except premiums until you’re dead! Annuities, bonds and money market accounts simply lock your money away where you can neither touch it nor use it without penalties, fees, and service charges; while IRA’s, 401(k) and other qualified plans only defer the taxes you owe so you can pay more later...even if you are in a lower tax bracket at the time you pay those taxes. If you haven’t done the math you owe it to yourself to do so now before you find out the hard way!
Finally, you have to deal with the financial gurus who attempt to save wretched souls from the financial hell which many are experiencing today. These opportunistic clowns swoop in and first thing they do is have you cut up all your credit cards...ONLY after they’ve been paid handsomely themselves from your very last one. Then they begin dispensing guilt in attempts to produce penance for your financial “sins” in hopes of obtaining your sacred vow to “pay cash” for everything from now. Of course the purported mission is to provide you with financial freedom for ever and ever. But these gurus are making millions off misinformed and/or ignorant folk who would benefit more from a simple explanation of how money really works.
Speaking of hell, once the gurus get ahold of you the heat is really on.
You’ll now have to work harder than ever just to make ends meet because your credit is gone. And if you keep up with all the financial antics which the gurus will put you through, you’ll burn-out! That is because these gurus have never grasped the fact that: “You Finance Everything You Purchase”[ii] in this life even when you pay cash for everything. That is because you either give up interest to others by using their money; or you give up interest you could have earned on your money if you hadn’t spent it.”[iii] There are no other options.
Consulting with hundreds of folks around the world, just like you, who are licking their financial wounds from all the misapplied, ignored or never learned truth(s) ---is not very pleasant at times. But what could you do if you would learn now how to Pay Yourself First without Spending More Than You Make and letting The Power of Compounding Interest work for you without having to work any harder than you are right now?
But realize these two important facts, until you understand why “You Finance Everything You Purchase” in this life and that “Whenever You Lose Control of Your Money You Lose Money,” then Paying Yourself First, and Spending Less (not more) Than You Make, and The Power of Compounding Interest won’t do you much good. And that is because those who control your money, the bankers, the financial planners, the money market managers, the politicians, the gurus and/or anybody else whom you’ve allowed to control your money, will make sure that they are paid first instead of you. And that means they will profit from it more than you do.
So learn to take control for your own wealth so that you can produce more value for others as well as yourself. Because, just like the Good Samaritan, the more wealth you control the more people you can help.
Have a wonderful Christmas Holiday and rejoice in the freedoms that we have.
By Tomas McFie
About the Author:
In private practice for 25 years, Dr. Tomas McFie now coaches hundreds of doctors along many other small business owners and individuals across the country on why and how to become wealthy. His book, “Prescription for Wealth,” has assisted thousands of people in understand the purpose of “why you should become wealthy.” Call him at 1-866-502-2777 or visit him online at www.life-benefits.com or just follow him on Facebook at www.facebook.com/life.benefits.inc .
[i] Employee Benefits Research Institute August 2009
[ii] Becoming Your Own Banker, R. Nelson Nash, 2000
[iii] Ibid
Wednesday, December 14, 2011
Goals, Diligence and Building Wealth
...do they have anything in common?
Ask anyone on this earth if they want to be wealthy and chances are very good that they will say “yes.” Why then aren’t more people wealthy? Is it just because they aren’t “lucky” or is it due to some explainable reason?
It must be due to an explainable reason otherwise how do you account for the phenomenon that when someone wins the lottery it’s just a few years before they’re right back where they were at beforehand? What did all that money do for them? Not much it seems, except go through their fingers and supply some temporary cravings. What about when someone receives an inheritance? Many times you see the same thing happen. What about when the average Joe gets a paycheck? Hmm, same thing again... he’s out of money at the end of the month.
Contrast a wealthy minded individual. Well, you’re probably not going to find them playing the lottery, but what about this type of person receiving an inheritance... you’ll probably see the inheritance be put to work in productive ways. And finally a wealthy person doesn’t just work from paycheck to paycheck. They save money and then use this money to make more money. Seems like we have a clue.
I like to listen to Zig Ziglar, and he talks about people that think in wandering generalities versus meaningful specifics. Most people in the world think in terms of wandering generalities, yeah they would like to wealthy, sure they would like to have more money working for them and not be living paycheck to paycheck, but this is as far as they go. People that think in meaningful specifics go farther; yes they want to be wealthy, yes they want money to be working for them, no they don’t want to live paycheck to paycheck, and then they sit down and setup a plan to get from point A to point B. This is a Goal.
Now a goal is immensely important as you build wealth. Again I refer to Zig Ziglar, who says confidently that he could shoot better than the legendary archer Howard Hill on the best day that Howard Hill lived. How? Well, provided that Howard was blindfolded and turned around a couple times. “Ridiculous,” you say! “He can’t see the target.” But same thing goes here… how can you become wealthy if you can’t clearly define where you want to go? A goal gives you a target.
The next step is to take action, insert the arrow, draw back the bow string, aim and release. Simple right? Well believe it or not many people break down right here. Some people don’t have the diligence to take the small steps in the big goal of building wealth or perhaps they may be held back by fear and/or doubt, but wealthy people overcome these things and achieve their goals.
Do you want to be wealthy? 1. Make sure you think in meaningful specifics and 2. Make sure you have the diligence to take action in the small steps of bringing your goal from paper to reality.
What if you fall short in this test? You have two choices:
1. You can do nothing. And as the saying goes “If you do what you’ve always done you’ll get what you’ve always got.”
2. You can change the way you think, choose to be diligent, follow through with the small steps, and become wealthy.
Which do you choose?
We specialize in coaching people who are working to achieve their greater financial goals.
John McFie
Get Your Free Download of Prescription For Wealth
Ask anyone on this earth if they want to be wealthy and chances are very good that they will say “yes.” Why then aren’t more people wealthy? Is it just because they aren’t “lucky” or is it due to some explainable reason?
It must be due to an explainable reason otherwise how do you account for the phenomenon that when someone wins the lottery it’s just a few years before they’re right back where they were at beforehand? What did all that money do for them? Not much it seems, except go through their fingers and supply some temporary cravings. What about when someone receives an inheritance? Many times you see the same thing happen. What about when the average Joe gets a paycheck? Hmm, same thing again... he’s out of money at the end of the month.
Contrast a wealthy minded individual. Well, you’re probably not going to find them playing the lottery, but what about this type of person receiving an inheritance... you’ll probably see the inheritance be put to work in productive ways. And finally a wealthy person doesn’t just work from paycheck to paycheck. They save money and then use this money to make more money. Seems like we have a clue.
I like to listen to Zig Ziglar, and he talks about people that think in wandering generalities versus meaningful specifics. Most people in the world think in terms of wandering generalities, yeah they would like to wealthy, sure they would like to have more money working for them and not be living paycheck to paycheck, but this is as far as they go. People that think in meaningful specifics go farther; yes they want to be wealthy, yes they want money to be working for them, no they don’t want to live paycheck to paycheck, and then they sit down and setup a plan to get from point A to point B. This is a Goal.
Now a goal is immensely important as you build wealth. Again I refer to Zig Ziglar, who says confidently that he could shoot better than the legendary archer Howard Hill on the best day that Howard Hill lived. How? Well, provided that Howard was blindfolded and turned around a couple times. “Ridiculous,” you say! “He can’t see the target.” But same thing goes here… how can you become wealthy if you can’t clearly define where you want to go? A goal gives you a target.
The next step is to take action, insert the arrow, draw back the bow string, aim and release. Simple right? Well believe it or not many people break down right here. Some people don’t have the diligence to take the small steps in the big goal of building wealth or perhaps they may be held back by fear and/or doubt, but wealthy people overcome these things and achieve their goals.
Do you want to be wealthy? 1. Make sure you think in meaningful specifics and 2. Make sure you have the diligence to take action in the small steps of bringing your goal from paper to reality.
What if you fall short in this test? You have two choices:
1. You can do nothing. And as the saying goes “If you do what you’ve always done you’ll get what you’ve always got.”
2. You can change the way you think, choose to be diligent, follow through with the small steps, and become wealthy.
Which do you choose?
We specialize in coaching people who are working to achieve their greater financial goals.
John McFie
Get Your Free Download of Prescription For Wealth
Wednesday, December 7, 2011
Hard Freeze
Yesterday was the first hard freeze of the winter season here in the mid-Willamette Valley in Oregon. We don’t get much cold weather in this part of Oregon and when we do many folks find themselves unprepared for the ice and freezing temperatures.
Yesterday was also a very hard day for us and our extended family members. One of our extended family members crossed the veil of this life into the next life yesterday early in the morning. She had just turned 35 last month and was fighting breast cancer which had metastasized to her liver, heart, uterus and finally her spinal fluid. She was in a lot of pain and had undergone nearly every conventional method of medical treatment available. She died just a few months past her one year of being diagnosed leaving two little children and her husband of 8 years.
This is such a sad story not only because her presence is gone but because less than 5 years ago when she was still healthy and the mother of only one child, she and her husband considered purchasing life insurance policies on themselves. Not that such a policy could ever replace the loss of her life but the financial burden that now must be borne by her family is incredible and that financial hardship is where a life insurance policy would have helped them considerably. With a life insurance policy on her life not only would her family be better prepared financially to cope with what they need to deal with now but during this last year of her life she could have used half of her death benefit to seek alternative care that was not being provided her by conventional medicine. And who knows the outcome of what that alternative care could have provided her and her family?
Life insurance isn’t just for the next guy, as I’ve heard some folks say when they decide not to purchase life insurance. No, life insurance is the best known way to reduce the pain of the known cost of death to those you love and care about. Not only will it help with the added cost of the internment process but it can supply a financial need to a family that must somehow cope with the financial loss which comes when an active member of the family is gone.
Don’t ever forget that those who understand IBC best are those who value family most. Life insurance is a must for those of us that hold these values. IBC just makes it all the better.
Don’t get caught unprepared for the freezes in your life. They can come extremely fast and ever so hard. Be sure and provide something of value to someone else today. Time is short.
By Tomas McFie
Yesterday was also a very hard day for us and our extended family members. One of our extended family members crossed the veil of this life into the next life yesterday early in the morning. She had just turned 35 last month and was fighting breast cancer which had metastasized to her liver, heart, uterus and finally her spinal fluid. She was in a lot of pain and had undergone nearly every conventional method of medical treatment available. She died just a few months past her one year of being diagnosed leaving two little children and her husband of 8 years.
This is such a sad story not only because her presence is gone but because less than 5 years ago when she was still healthy and the mother of only one child, she and her husband considered purchasing life insurance policies on themselves. Not that such a policy could ever replace the loss of her life but the financial burden that now must be borne by her family is incredible and that financial hardship is where a life insurance policy would have helped them considerably. With a life insurance policy on her life not only would her family be better prepared financially to cope with what they need to deal with now but during this last year of her life she could have used half of her death benefit to seek alternative care that was not being provided her by conventional medicine. And who knows the outcome of what that alternative care could have provided her and her family?
Life insurance isn’t just for the next guy, as I’ve heard some folks say when they decide not to purchase life insurance. No, life insurance is the best known way to reduce the pain of the known cost of death to those you love and care about. Not only will it help with the added cost of the internment process but it can supply a financial need to a family that must somehow cope with the financial loss which comes when an active member of the family is gone.
Don’t ever forget that those who understand IBC best are those who value family most. Life insurance is a must for those of us that hold these values. IBC just makes it all the better.
Don’t get caught unprepared for the freezes in your life. They can come extremely fast and ever so hard. Be sure and provide something of value to someone else today. Time is short.
By Tomas McFie
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