Brick House Savings
Your Guide to: The $even $martWeatlh $aving $trategies
Strategy One - The CD Alternative
Chapter 1
The Twisted Tail of Three Little Pigs
The middle pig wanted to make his fortune in the real estate market. His stick built house investment strategy also went up quick. It was a bit stronger than his brother’s straw house. But it too became shaky.
The wise older brother built a house of bricks. His idea was to make predictable growth on smaller investments over a long, long time.
The wise older brother’s house was big and strong. The older brother pig continued making wise, long term investments and eventually had a predictable future retirement income for himself and his clients.
When they grew weary of rebuilding their straw and stick houses each time they fell down, the younger pigs decided to build another house that looked a lot like their older brother’s house. But they chose to use very cheap building materials. Even though their brick house did look almost exactly like the wise older brother’s home, they knew it wouldn’t last. But they thought, “Why spend so much money building with such high quality materials? We want to make a lot of money, and quick!”
The middle pig brother went into politics. He sold government and municipal bonds from the main floor of his cheap brick house. He passed all kinds of laws that made home purchases “affordable” for the poor and needy. They bought houses they couldn’t afford, with money they couldn’t pay back to impress people they didn’t even like. He also raised taxes on the rich because those guys didn’t deserve to keep all their excess money when there were so many others in need (including himself, of course).
The youngest pig brother moved in with his next older brother in the cheap brick house. These two younger pigs were very close.
Youngest pig brother got into banking. While middle pig sold bonds, youngest pig sold CD’s and Money Market Accounts. Both of these younger brothers wanted to make as much money as possible. So they didn’t pay their customers very much. But they did charge really high fees.
Youngest pig brother was so eager to make more money, he even set up a printing press in the basement. His goal was to print as much money as he could and buy lots of stuff and resell it at a profit. “What a GREAT plan!” he thought.
So that was their retirement plan. The two younger brothers kept their straw and stick houses and continued to charge high fees for “helping” their clients with loans, investments, and such. But they did most of their business out of the cheap, pretend brick house they had built to look almost exactly like the wise oldest pig’s wonderful and sturdy brick house.
And so the three brother pigs lived happily until the Big Bad Wolf came in 2001 and again in 2008. The wise oldest pig’s solid brick house stood the test of this terrible, awful huffing and puffing and blowing. But sadly the straw and stick houses came tumbling down.
Since the two younger pigs had financial and political power and because they were, after all, living in the same house, they decided to help each other. Banker pig helped by printed even more money.
Billions each month were pumped into the economy. Banker pig used all this extra money to buy his politician brother’s bonds. Now the politically powerful middle pig brother could say that he was paying off all his debts. This scheme work like a magic charm! The two younger pigs grew very fat from the spoils they took from their customers.
Politician Pig wrote lots and lots of new regulations to make sure businesses and the rich were behaving themselves and treating others equally! The rich were just too rich! So like a caring parent, Politician Pig made sure these naughty rich kids chose to share with others. That was the fair thing to do. After all, we should never make others feel bad about being poor. Everyone deserves to be a winner.
The two younger pigs grew very fat from the spoils they took from their customers.
Unlike his portly and glutinous younger brothers, the Older, Wiser Pig stayed fit and trim. He planned ahead long into the future. He wanted to live a long healthy life. The older wiser Pig was self-sufficient and self-motivated. He wanted to achieve long term success both for himself and for his clients. He was careful about both his physical health and the health of his wealth.
“If you know what is happening, you will know what to do.” – R.Nelson Nash
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