“YOU ‘FINANCE’ everything you buy. You either pay interest to someone else or you give up interest you could have earned.”
-R. Nelson Nash, Becoming Your Own Banker
There is an idea called the Infinite Banking Concept (it goes by other names, too, such as Privatized Banking, Family Banking, Circle of Wealth, Bank on Yourself) that claims to help people purchase the big-ticket items they need without sacrificing wealth-building at the same time. Infinite Banking uses dividend-paying or participating whole life insurance, which is greatly misunderstood by many.
Today, we’d like to illustrate how this strategy works using a less-controversial asset: a home. We also include a link to a video that gives an Infinite Banking example of borrowing against cash value to purchase cars vs. paying cash.
“Gratitude is much more than a verbal expression of thanks. Action expresses more gratitude than speech.”
-Mary Baker Eddy, Science & Health with Key to the Scriptures
We love Thanksgiving – and by Thanksgiving, we don’t JUST mean the Thursday in late November when loved ones gather to eat a traditional holiday meal together (we love THAT too!) We also love the practice of “Thanks-giving” all year around, and strive to integrate gratitude and giving thanks into our daily rituals as well as our holiday celebrations.
This year, we’d love to share our gratitude with you… our habits and traditions of gratitude, as well as the things we are currently giving thanks for (that might enrich your life as well.) We also invite you to share your own gratitude in our comments section below, and/or share this post on Facebook or email to “share the gratitude”!
“A penny here, and a dollar there, placed at interest, goes on accumulating, and in this way the desired result is attained.”
The Whole Life Insurance Dilemma: Taking Your Cash vs. Taking a Policy Loan
Need a chunk of change? Perhaps it’s an emergency, perhaps it’s an business opportunity, or it may simply be a periodic major purchase such as a new car. Either way, it’s bound to happen – you’ve got a need for cash, and you have to decide whether to get the cash from a credit card, a retirement account, a home equity line of credit, or somewhere else. Continue reading
“Happiness is having a large, loving, caring, close-knit family in another city.”
- George Burns
A lot of time and attention has gone into emergency preparedness in recent years. Many Americans have emergency plans in case of an earthquake or a flood. “Doomsday Preppers” go further, expecting a possible epidemic or economic collapse. And in 2011, the CDC published Preparedness 101: Zombie Apocalypse as a tongue-in-cheek way to rally people of all ages into being “ready for anything.”
But how many people are truly prepared for the most commonly experienced emergencies?
Emergency preparedness is important, but even an underground shelter with water and canned goods stored won’t prepare you for the MOST likely emergencies that wreak havoc with our everyday lives: PERSONAL emergencies. Continue reading
“Target-date funds… are the lazy investors dream.”
-The “Buy Like Buffet” blog
If you’ve been following our blog, you’re aware that we’re not big fans of target-date funds.They have suffered from poor market performance, higher-than-necessary fees, and other substantial problems for investors, such as conflicts of interest and risky management of funds nearing or at retirement.
But in spite of these issues, target-date funds are the fastest-growing type of mutual fund in 401(k)s today, holding more than half a trillion dollars. According to Vanguard, the number of its 401(k) participants that invest solely in target-date funds has exploded recently, increasing six-fold over the past five years.
“A life insurance agent said to a would-be client: “Don’t let me frighten you into a hasty decision. Sleep on it tonight. If you wake in the morning, give me a call then and let me know.”
How much life insurance do you need, exactly? How do you determine how much is enough? Are there rules of thumb? Are there limits to how much you can get? And if you are using a whole life policy to store cash, is it really providing you the death benefit your family should have?
First of all, we’d like to clarify that no one “needs” life insurance. It’s not a staple of life like food, water, and shelter, and we are definitely not in the business of applying pressure or guilt to buy life insurance (or more of it). Continue reading
“China’s growth model is broken and can’t be so easily fixed.”
– Michael Schuman in “The Real Reason to Worry About China,” Time Magazine
Recently, China’s GDP slowed from around 10% annually to just over 7% a rate of growth still envied by most nations. Is it a temporary lull or a sign of things to come? Many economists and analysts believe that China may not ever see such astronomical rates of growth again.
To understand why this is so, we must look at not one or two sectors, but nearly every sector of the economy. China isn’t facing a bubble, it’s in danger of taking an economic bubble bath. Unfortunately, things may get much worse for China before they get better.
China’s Real Estate Bubble
You’ve heard of the one-child policy. But what about the one-apartment rule? That’s exactly how the government has been attempting to tame the mainland housing bubble. Following 1998 policy changes which allowed publicly held apartments to be sold to new owners, real estate in China went wild. Allowed to invest in little else, families pooled generations of savings to purchase multiple apartments… even more than they could live in. Continue reading