Thanks to Dan Thompson for this post

As a “recovering and reformed” financial planner I was interested in what he had to say.
I remember back in the mid eighties when we did some research on mutual funds we would go back 3-5 years and we could show some pretty descent double digit averages. Then we could put together an analysis showing the client a very nice return over the past 3-5 years.
As the economy progressed into the nineties it was easy to show 3, 5 and even 10 years of descent growth. There were a few glitches along the way, Black Monday in 1987, the 1994 recession, and a stalled economy here and there, but for the most part showing clients 5 years of reasonable return was easy to do.
Then came the turn of the century. As you know the Y-2k scare had many investors tucking away their capital in fear of losing all their money, not from a drop off in the economy as much as from a computer error. Then the dreaded day of September 11th attack in 2001.
Not long after 2001 many advisors found that they needed to go back 10 years to show any kind of return enticing enough for an investor to risk his/her capital. In the eighties and nineties it wasn’t hard to show 9-12% over 3 to 5 years, but after 9/11 you had to look back for 10 years to find that same reasonable risk reward ratios.
Fast forward through the downturn in the markets and the economy since 2007 and here we are now. Listening to this financial advisor on the radio shocked me. He was trying to peddle the same old information about diversification and asset allocation and how over time your money does just fine in the stock market. However, something had dramatically changed. Where we use to have to look back 10 years to show a descent average rate of return to prove this out, this financial advisor was telling investors that they need to look back 35 YEARS now! Come on, 35 years? Who can wait 35 years for their portfolio to perform? It’s crazy.
The average American doesn’t start saving for retirement until they are in their mid to late forties. Which means from age 45 to age 80 this “average” investor is suppose to let this portfolio go without worrying. Is that possible? Could you do that? I know I couldn’t.
Whereas the eighties and nineties provided ample opportunity to achieve a reasonable rate of return in a 3, 5 or even 10 year time frame, it appears that a 35 year time frame is what an investor needs to look at in order to be satisfied with the return. That is unacceptable to me, but it’s the world we live in, and it’s why I have elected to steer away from risk and stick with those strategies that work over time and put you in control.


America Rebuilds

March 19, 2010

I recently saw a TV ad from Principal Financial Group directing viewers toward their new website Immediately I thought of my previous blog post entitled ‘why ever worry about getting back on track’ .

The website has a heading that reads “inspiration, advice and tools to help get your financial future back on track.”  It is fairly obvious that the vast majority of Americans have simply followed the advice of the buzz-word-filled financial planners out there and found themselves so far behind their financial goals that catching up to where they were seems impossible.

I am hoping that the recent turn of events has caused people to think a little harder about exactly where they are putting their money and who they are trusting to invest it.  I am hoping that more Americans will take control of their financial future instead of leaving it in the hands of their so-called ‘expert advisors.’   If you are reading this and have not taken a few minutes to educate yourself about the power of becoming your own bank, please take about 5 minutes to watch this video .

Hopefully this video will help you start thinking differently about finances and wealth management, and understand one of the best ways to simply SAVE YOUR MONEY!

I’m sure you have heard about or seen some of these images, if not enjoy as this artistic magician tricks your eyes!


“Too good to be true”

December 27, 2009

I have always enjoyed the holiday season for many reasons, the main one being the chance to be surrounded by family and friends.  The question that seems to be the staple coming from those that I haven’t seen very often throughout the year is “what are you up to?”  I love taking this opportunity to tell whoever is asking that I’m helping people establish personal banking systems so they can effectively create wealth without putting their money at risk.

As I explained this idea of becoming your own banker to a family friend I wasn’t surprised when he became very skeptical about the idea of never losing money.  His words were “sometimes the things you hear about that claim to never lose money are too good to be true.”  This is one of the mind traps that must be overcome when understanding the banking concept.  For years and years financial gurus and advisers have made us believe that there is no possible way to get rewarded without placing your money at risk, and that anything claiming otherwise is a scam.

I urge you to take a look at this brief video that explains the basics of becoming your own banker.  After you understand how being on the right side of the banking equation plays a huge role in your financial future leave a comment or head over to my site at to contact me and I’ll explain more about the myth behind the statement ‘no risk, no reward.’

Many people are under the impression that the only way to buy life insurance is to buy term and invest the difference.  True, this option is the best for some people but the majority of people out there are not dedicated/disciplined enough to actually invest the difference.  They end up paying very low premiums for term insurance and the extra money goes toward living expenses or leisure activities.  The thought of those that actually do invest the difference is that when their term insurance expires they will be so wealthy that they will not need to purchase any more life insurance.

I believe the mindset about insurance needs to be changed.  So many times I here life insurance compared to car insurance and you pay it just in case of an accident.  While this is true of car insurance, life insurance can be used for so much more than simply accident protection.  Just like its better to own rather than rent and home, it is better to own instead of rent lift insurance.  Why?  because at the end of your 20 or 30 year term you have nothing!  Unless certain riders are put in place you have no cash value, no death benefit and nothing to leave to your heirs.

Using dividend paying whole life as an investment vehicle as well as a personal bank can extremely increase your saving potential as well as your overall wealth.  Becoming your own bank is the most powerful, safest, and well tested tool you can have in your financial arsenal.  Click on the link on the top of this page to fill out our secure form and request more information.  You have nothing to lose and everything to gain.