The Prosperity Blog

The Surprising Business Financing Secret of Top Entrepreneurs

business-financing2“Cash is King.”
~Anonymous

What makes a business succeed? As a general rule, capital comes in handy! And whether a lack of cash is a symptom or cause of a failing business (it can be both), undercapitalization brings down more businesses than anything else.

Of course, you can save your own capital, but there are lots of pitfalls to dodge. You’ll want to avoid these scenarios:

  • Paying steep taxes and/or penalties to access your own money.
  • You either can’t use or must use the money, depending on your age.
  • There are limits on how much you can save.
  • You have to pass ever-changing qualifications to access money.
  • The money can only be used for certain purposes.
  • If you need money, you must sell the underlying investment and forfeit future gains.
  • A change of income, credit, or home values could make your “savings” inaccessible.

You can see why mutual funds, retirement accounts, qualified funds, and home equity lines of credit make poor choices for Emergency/Opportunity Funds for you or your business. So where DO you get capital?

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7 Ways to Vote for Yourself

Afro-American girl and American flag, isolated on whiteIt’s a close race and tense day for many Americans. Who am I voting for? I’m voting for you, of course!

I’m voting for each and every one of us to raise our level of happiness, kindness, and prosperity – regardless of who is in the White House or which party controls Congress.

Perhaps you’ll be pleased with the outcome of the election today, and perhaps not. But let’s not fall into the trap of believing that as individuals, we are powerless to control our own destiny.

By following the seven steps below, you’ll be “voting” for yourself to have an abundant next four years… and a prosperous life!

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Life Settlements: Why Seniors (even Celebrities) are Selling Their Life Insurance Policies

I don’t want to tell you how much insurance I carry with the Prudential, but all I can say is: when I go, they go too.”
– Jack Benny, comedian (1894-1974).

An on-air penny-pincher who pretended that he would sooner die than part with a dollar, the real Jack Benny was a kind and generous man. Also an excellent planner, his widow was well-taken care of after his death and even received a daily red rose from the local florist, a provision arranged for in his will.

Ed McMahon, the former co-host to Johnny Carson on The Tonight Show, was another generous celebrity. Gifted with an optimistic personality and a hearty laugh, McMahon lacked Benny’s budgeting and strategizing skills. (Perhaps he took more after the Celebrity Sweepstakes Winners he helped create….) In spite of decades of career success, McMahon lost his health in 2007, then nearly lost his home to foreclosure in 2008 before passing away in 2009 at the age of 86.

While Donald Trump reportedly may have assisted the aging, ailing celebrity to stay in his home, the McMahons were also helped by another friend who told them about Life Settlements. As Pam McMahon (Ed’s widow) reports, they were previously unaware that they could sell a life insurance policy, thus using it as a liquid asset in a time of need.

Ed McMahon carried multiple life insurance policies, and the premiums became an unmanageable burden to them, especially when injuries prevented him from working. According to a letter written by his widow Pam McMahon,Ed had more than one policy and they were able to sell one to ease their financial stress.

More Seniors Are Selling Their Life Insurance Policies

Interestingly enough, another well-known celebrity has chosen to endorse Life Settlements (and probably not because she needs a paycheck – this octogenarian is still red-hot in show business!) Actress Betty White has done commercials for a company in the Life Settlement industry and has gone on record stating that she “would encourage any senior who is considering letting their life insurance policy lapse to consider a life settlement.” (I can’t help but wonder if she is the friend who helped the McMahons with her advice….)

But there are many other reasons, besides financial stress, to consider selling a life insurance policy. The beneficiary may have passed away. The policyholder might simply wish to use the money differently, such as starting a business or sending a grandchild to a private college. The policy holder may have multiple policies and no longer need them all, or the policy may insure a “key man” in a business partnership who has retired.

Is selling your life insurance policy the only solution for seniors seeking cash?


Absolutely not! Many seniors simply don’t qualify. For instance, if you are healthy and in your 70’s, it is doubtful that you could find a buyer for your policy. Life settlement investors and their intermediaries are looking to buy life insurance policies of individuals who are nearing life expectancy. Typically, the insured is in their 80’s and/or in poor health. Even if you do qualify to sell your policy, it’s important to look at what option makes the best sense for your particular situation.

Oftentimes, retirees have “lazy assets” that could be put to better use. There are better options than earning one percent or so in a bank certificate of deposit. Sometimes, a reverse mortgage may make sense. (Learn more about that option in this podcast with Kim Butler.) Or perhaps you can change the SEQUENCE of how you are spending your assets. This strategy can help and reduce taxes and increase income!

We invite you to schedule an appointment to learn about ways to generate more cash flow. You can also sign up for our Prosperity Accelerator pack and you will receive an ebook and articles with our favorite strategies for income.

Do you own a whole life insurance policy? One advantage of a whole-life policy is that it gives you many options. For instance, the cash value can be used to pay up premiums so that no more premium payments are ever needed! There are other ways to use your policy to obtain cash (while you’re still living) – withOUT having to sell your policy.

Are you interested in investing in Life Settlement Funds?

For more information on Life Settlements, we invite you to read about their history and rise as a new asset class and learn how they can help you truly diversity your portfolio. To learn more about investing in life settlements, watch this 10-minute video that explains life settlements in greater detail.

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10 Real Estate Investing Mistakes That Kill Profits

 “In the real-estate business, past success stories are generally not applicable to new situations. We must continually reinvent ourselves, responding to changing times with innovative new business models.”
~ Akira Mori, Tokyo real estate developer

Mistake #1: Look at Too Few PropertiesInvestment real estate is a proven path to wealth. However, there is often a steep learning curve to real estate investing profits. Investing in real estate also has many possible pitfalls that can lead to frustration and loss!

How do you maximize your profits without suffering expensive “learning experiences”? Avoid these ten costly mistakes! (And if you aren’t sure that “active” real estate investing is for you, read on… we can help you avoid these mistakes AND earn passive cash flow from real estate investments… without plumbing or tenant problems.)

Mistake #1:  Look at Too Few Properties

Too often investors are impatient, limited on time, or searching in too small of a market. They evaluate 8 or 10 properties, pick the one that seems the best, and make an offer. Yet choosing from limited options and locations usually mean settling for mediocre deals. And in markets where purchase prices are high compared to rents, properties have limited profitability.

To find better deals, look for MORE deals. Examining properties in various locations and markets is one way to do that if you’ve got the time (or a team) to travel as well as analyze properties. One of our providers of real estate investments examines about 100 properties (all around the country) for every ONE they purchase.

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7 Ways to Prepare for – or Avoid – An Economic Disaster

I went to the ATM this morning and it said “insufficient funds”…
I’m wondering is it them or me?…”
– from Mirror.co.uk

economic-disaster-preparationAs we commented in a recent post, “The Double Standard and the Golden Rule,” fractional reserve banking practices can leave our banks with insufficient capital should too many depositors want their money back at once. And frankly, in addition to the risk of bankers over-diluting our dollars or gambling them away with derivatives, a dozen other things could bring down the economy as well.

And we’ve noticed something curious…

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What’s So Funny About Money? Fifty Financial Jokes

Diva Chic DogAfter a couple of weeks of talking about banking fraud and scandals on our Partners for Prosperity blog, it’s time for a change of mood. After all, a number of recent studies show evidence that happy people make more money, and we’d like to help you be more prosperous!

Therefore, we scoured the internet to assemble some of our favorite jokes about money. We hope you enjoy reading them as much as we did assembling them. 

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The Double Standard and the Golden Rule

“People are always worried about politics, about the presidents and all these figures, but really, they should be worried (about) banks; because banks own everything. they own you, they own us.”

~ Unnamed bank employee featured in video for BetterBanksLA.org

ID:66529645

The definition of the Golden Rule was updated with this witty punch line, from a 1964 comic strip, The Wizard of Id: “Whoever has the gold, makes the rules!”

And in case after case of bank fraud and other financial institution crimes, the joke hits too close to home.

If a person robs a bank, they go to jail.

When a bank is caught robbing a person, the institution is fined, and most of the fine ends up in the pocket of the government and/or agency imposing the fine.

If a person uses someone else’s personal information for their own financial gain, it’s called fraud. Those convicted of it face steep fines and even prison.

When a bank was caught using its own customers’ personal information for gain, no one was prosecuted. Employees caught were let go, while executives and managers received bonuses and promotions.

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