Brick House Savings
Your Guide to: The $even $martWeatlh $aving $trategies
Strategy Two
The $uper $ecret "$even $eventy" $avings Account
Tax-Free Growth $trategies™
Chapter 2
The Wiser and Healthier Older Brother Pig
In the chapter following this, the full
meaning of The Twisted Tail will be revealed.
But for now, let’s take a closer look at this Wiser, Older Brother Pig
who is health conscious.
“Unlike his portly and glutinous younger
brothers, the Older, Wiser Pig stayed fit and trim. ...He was careful about both
his physical health and the health of his wealth.”
Over
the years I've made it a habit to watch my weight. I eat healthy whole foods, exercise
regularly, and I take natural supplements. I've also made it a habit to weigh myself at the same time each morning
and (as much as it is possible) under similar conditions so I have a more
accurate baseline of change. A friend once
commented on my healthy appearance. Then
he joked that every time he watched his weight… he had trouble seeing his feet! When you’re overweight, you might try extreme
measures to lose weight. For instance,
you could appear to be a few ounces lighter if you removed your glasses. This would also have the added benefit that
you’d be unable to see the number on the scale!
Lots
of people are that way about their market investments. They want to set it and forget it. They for sure don’t want to watch it. They have better things to do with their
time. You've probably heard them say
things like:
“My mutual funds will do just
fine. That’s where I put all my
retirement savings.” “My buddies down at
the office put all their 401k money in mutual funds and I figure if it’s good
enough for them…”
These
comments are a lot of blah, blah, blah –
un-meaningful blather. You’re not
going to do a better job of retirement “saving” when what you are really
doing is risky investing. Can you
see that Wall Street has convinced you to trust that your 401k
plan is well managed and there’s nothing to worry about. They say:
“Just set it and forget it. Leave the money alone. Buy and hold.
You’re young and have plenty of time to rebound from a market loss. You haven’t lost money until you sell your
stocks and mutual funds.”
Really! Here’s the truth. It’s not IF
you will suffer a market loss but WHEN! You already know that loss is very
likely especially if you stay in the market for any length of time. [But, didn't your adviser tell you to stay in the market for a very long time or did
I miss something here?] When you
have a market loss, the really sad thing is that you not only lose your hard
earned money but you also lose the time it took to make those gains in
the first place. Time can never
be replaced. Losses, taxes, and fees can
measurably affect your overall returns for your entire investing life.
So
let’s be honest with each other. We need
to forget this nonsense that we are “saving” for retirement in a traditional
government or so called “qualified” plan.
If your money is in the market –
it’s at risk! You are investing
not “saving.” Mutual funds are not a
safe and secure investment. They can and
will lose value at some point during your working years. Brokers might tell you that you've gotten average returns of 8.46% over the last 18 years even with 4 down
years. But your actual compounded
returns over this period were really
just 3.63%.
True,
it is important to set aside money on a regular basis. Having money removed from your paycheck before
it ever gets home means that you are far more likely to amass a nice chunk of
change over time. But would you also
agree that Wall Street’s (and the government’s) plan to have you regularly
deposit money into their game probably has enriched a lot of stock market
traders? Do you think that the ERISA
laws were solely for the benefit of working Americans?
Reagan
used to say that some of the most fearful words ever spoken were, “I’m from the
government and I’m here to help you.” I
do not trust the government’s so
called “qualified” retirement plans.
They can and have regularly changed the rules while you’re still
playing the game!
Can
you imagine being on the football field and just after half-time the referees
say, “While you were back in the locker room, we moved the field goals back 20
yards and you can now only have 8 men on the field at any time and you have to give
half of your points to the other less fortunate teams.”? The coaches on both sides would go absolutely
ballistic. “I've designed all my game plans with the old rules in mind, this is
not fair. We can’t be expected us to be
successful at winning when you keep making changes like this.”
But
now you’re in the government’s game and they set the rules. Think about it. If I offered to loan you money and said “You
don’t have to pay me back right away but when I do need the money I’ll tell you
what the loan interest rate is and how quickly I want you to pay me back the
money.” No financially savvy person
would ever go for that kind of phony loan deal.
Yet we have listened to Wall Street, the Government, and our CPA:
“See how much money I saved on
your taxes this year.” “You’ll be in a lower tax bracket when you retire.” “Tax
deferred is the best way to save for retirement!” “Everyone wants Qualified Savings, don’t you?”
Well…
unless your CPA is a Biblical prophet, there’s no way he/she could possibly
know what the tax bracket will be when you retire. You could easily be living on less money and
still be paying higher taxes.
If
you believe (as many do) that tax rates are more likely to be higher in the
future, then why are you putting off paying your tax bill to some far distant
year in the future and on a larger sum of money? Think about it. You’re not only putting off the tax bill but you’re also putting off
the tax calculation!
Remember
that phony loan deal? You’d never go for
that offer, right? Or would you? Why are you assuming that the government has
your best interests in mind? If they
really wanted you to keep and save more of your money, why didn't they just
lower your tax rate to begin with? Your
money doesn’t belong to the government – or does it? “Whose
retirement are you planning anyway – yours or Uncle Sam’s?”
$martWealth $aving
$trategy #2 is called the Tax-Free $even $eventy
$avings Account. You've probably figured
out on your own that these Brick House Savings Strategies have everything to do
with creatively using life insurance products.
These uniquely designed Strategies will grow tax-free and
provide tax-free access to your funds to supplement your
life style needs during your retirement years.
The older, wiser pig does not use a tax loop hole. Life insurance was around LONG before Federal
Income Tax was “temporarily” enacted in 1913.
Tax preference for life insurance was written into section 7702 of the
Internal Revenue Code ( http://www.section7702.com/section-7702.html
). For short, we’ll call these carefully,
conscientiously, and correctly designed $martWealth $trategies: “770 Accounts.”
Technically,
insurance should not be called “savings.”
However, you would likely agree that getting tax-free growth on your
insurance policy cash values and having tax-free
access to those same cash values plus the tax-free transfer of this asset to your heirs is exactly what you want
your “safe money” to do for you. The features of this tax-free strategy
certainly sound better than risking your retirement “savings” in the stock
market. If nothing else, at least the
770 Account is a better place to start even if you decide to risk money in the
market. You’ll learn even more about
this $martWealth $trategy™ in Chapter 3: The 12 Things Everyone Wants in Their
Perfect Investment.
“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
insurance industry was around LONG before Wall Street transacted its first
trade. The insurance industry, our so
called “Older Wiser Pig,” was around LONG before the Federal Reserve Banking
System and FDIC insured bank accounts.
The “Older Wiser Pig” was managing corporate and government pension
funds LONG before the passage of the ERISA laws in the early 1970’s.
Admittedly, this Elder Brother Pig was not
always as genuinely concerned about client needs as he is today. Prior to the 1980’s, life insurance and
annuities were generally unsatisfactory repositories of retirement saving
funds. Enticed by high commissions; insurance
agents tended to push product like a used car salesman on Friday night. But things are genuinely different today.
In the chapters
to come, you will learn much more about these uniquely and creatively designed
strategies that enable “death” insurance to finally, truly provide living
benefits. You’ll learn how to set up
your own privatized bank and how to redirect much of the taxes, fees and
interest that you would normally pay to someone else over a lifetime. You’ll also discover why (generally) you
should NOT annuitize and annuity. Yeah,
I know…. Confusing! But you need to know
the facts. That way you will make better
financial decisions. You just have to
start seeing things in a much different way!
I’ll grant you
that there’s a lot of “hidden” meaning in this altered version of The Three
Pigs. But it’s not hidden. Not really.
The problem is that we are all so focused on what we have to do
each and every day (just to make a living and lead a balanced life) that a LOT
of what goes on in the financial world and in government agencies goes on
unnoticed. So what we think is
hidden is actually sitting right there, right in front of us in plain
sight! You just have to put on your
“Financial GLA$$E$™.”
Guaranteed Growth
Liquidity
Accessibility with Accountability
$afety of principle
$ecure financial institution managing
your tax-free 770 Account
Enjoyment
$elf-fulfilling
Now that you have your Financial
GLA$$E$™ on, start really observing what’s really
going on with your financial health, your WealthHealth™. You could and should be saving for
retirement not “risky-investing”
for retirement. Using an automated
Electronic Funds Transfer (EFT) to regularly place some of your monthly earnings
into your own 770 Account will put you on the road to success. Pay your taxes now at a lower rate so that
your money will:
1) Grow tax-free,
2) Provide tax-free access, and will
3) Blossom and
transfer to your heirs tax-free
should you permanently “retire” sooner than you planned.
4) It can also
become self-fulfilling. If you become
disabled and are physically unable to work, your 770 Account can be set up to
fund itself for the rest of your life.
That is, it could be creatively designed and established in such a way
that your deposits would continue to be made on your behalf even if you became
disabled.
Because
of your new Financial GLA$$E$™, you
can now see much more clearly with a much higher level of focused
attention. As you explore deeper in the
chapters ahead, you’ll be able to see a few “gold nuggets” that you would have
otherwise missed. With your new
Financial GLA$$E$™ on, you’ll discover an amazing story of lies, greed, and
deception in the world of Wall Street and Centralized Banking and you’ll
finally understand the Federal Government’s penchant for debt. Through your new Financial GLA$$E$™, you will
clearly see what is actually going
on around us. That will make all the
difference in your ability to make great financial decisions. Remember:
“If you know what is happening, you will know what to do.”
~ by R.
Nelson Nash (my favorite Austrian Economist)
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