Are You Fishing in the Wrong Market?
October 30th, 2014
After careful preparation, commitment, and expense Alaskan residents rush to engage in the personal -use Salmon Fisheries at the Kasilof and Kenai Rivers. This involves using a 60-inch net with an extended pole that looks similar to a pool cleaner setup, to catch fish. There are those that luck out and return home with overflowing coolers of sockeye “red” salmon. But the others, ill-fated, end up with chest waders full of sand, tired from heavy beach break, and frustrated with unwanted flounders. With over a million fish making it through the escapement each July, why do so many nets remain empty? It’s definitely not from any fisherman’s lack of effort, yet the fate is very predictable.
I have participated in this adventure for the last five years. In hopes of a plentiful bounty, I’ve surrendered to what some would call a suicide run by driving through the night to fish a single tide change, then head to work. Some seasons have been good, but most trying. The biggest hardship came when, a couple years back, my timing was two days late. While I stood in quiet waters with an empty net, my friends that were days ahead of me spent that time filleting and packaging their harvest.
It has me considering the conditions of the financial markets we might participate in. Just like the eager fisherman who sees those around bringing home bundles of catch, we eagerly attempt to try our luck for the same conclusion. But are we bringing the right tools, expertise, and understanding to those financial markets, or are we being beaten by the wasteful lows and not catching the substantial highs?
Where Should I Invest?
Too often than not, clients talk about diversification. Diversification does not only happen within the stock market, but by using other financial vehicles as well. An often overlooked asset is Life Insurance, specifically Whole Life Insurance. Why?
- Tax deferred growth, with tax-free potential
- Consistent ROI
There is a plentiful bounty available. You just need to know where to fish. Follow the link for more education on Whole Life Policy Insurance.
How To Tell If You Are A Stock Market Victim
October 28th, 2014
Those that have money in the stock market through investment vehicles such as stocks, mutual funds, 401k’s, IRA’s, or similar investments, could be “victims” and could be losing money as Michael Lewis describes in his book Flash Boys.
Not only could these investors be losing money in the stock market as victims, but they could be subjecting that money to more risk than they might think.
The Difference between Saving and Investing
Unfortunately many have come to believe that saving and investing are one in the same, which is simply not true. For example, some of the characteristics of money for “savings” could include: safety, liquidity, guarantees, no risk or minimal risk. Characteristics for “investing” usually include: risk, speculation, and a chance of loss.
“Savings” vehicles could include savings accounts, money market accounts, Certificates of Deposit (CD’s), bonds, cash value life insurance, etc. Common investment vehicles include stocks, mutual funds, 401k’s, 403b’s, 529′s, IRA’s, and other Qualified Plans.
Most people are “saving” money in the wrong place.
Most people are “saving” for retirement, or “saving” for a child’s college education in the stock market. The stock market is for “investing” money, not “saving” money.
Think of your money in buckets
Money that you want to be there in the future should be in the savings bucket. Money that you are willing to risk and subject to loss can be put into investments. I have seen people put “savings” money into the “investment” bucket and lose so much of it that it almost ruins their life.
So what you can you do about any of this? The obvious answer is to keep your “savings” money out of the stock market. Look for good savings vehicles. Look for savings vehicles with “investment-like” qualities.
Re-evaluate where you are saving money and where you are investing money. And, be sure your savings vehicles, and possibly even your investment vehicles, have the two fundamental characteristics of guarantees and liquidity. These are key to financial success!
Why Whole Life Policies “Insure” Your Foundation
October 21st, 2014
Throughout time, record has shown how many ancient societies created contracts with others to secure safety. As we know it, Insurance dates back as early as 1750 BC, as Babylonians and sea merchants tried to minimize their risk on the open waters. As you’d expect, their form of security included tangible goods like grain, wool, and seeds.
Obviously, society has evolved to finding more complex strategies to secure a person’s survival. You might not be fighting off pirates on the sea, but you are fighting against intangible threats that rob your fortune like Wall Street, qualified retirement plans, inflation, and taxes.
Whole Life Insurance is used by those who understand that their money can only be protected by something that was established long before the IRS was invented, and long before the government began writing laws that took money from its citizens by way of heavy taxes and a Fiat Currency.
Whole Life Policy Offers:
- Liquidity through a Guaranteed Cash Value
- Safety against Government Regulation
- Consistent Rate of Return
- Tax Free Advantage
Many wealthy individuals like Walt Disney, J.C. Penney and the Rothschild Family have used Permanent Life Insurance to guarantee a solid foundation. Accessing these benefits is just the beginning. When a Whole Life Policy is structured correctly, anyone, even YOU, can maximize Wealth Potential.