In the recent past we looked to professionals of the financial planning industry to help us devise a more informed plan that would take us comfortably into our retirement years. Unfortunately, the procedures and methods that most typical financial planners follow and suggest have become archaic and antiquated (even self-serving). Too often, this misguidance has led to diminishing returns instead of the large gains usually promised. As a result, and for good reason, we as a public have lost our faith in these so-called professionals and have lost the desire to save or invest for the future. Read the book, “Where are the Customers’ yatchs?” by Fred Schwed Jr.
To further the challenge, Social Security has published their prediction to be bankrupt (See your yearly Social Security statement page 1 top right paragraph) and the government is screaming at the public through almost every form of media to establish a personal financial plan that would not include government assistance. In other words, “you are on your own!”
Without understanding your economic alternatives or having a personal system of financial growth, the effects of social heredity during demographic and economic transition has proven to be devastating financially for most.
In other words it’s becoming more and more difficult to achieve any level of financial security if we make our financial decisions based on our inherited perceptions. As time goes on things change and the economic climate we live in changes too. Things are changing more rapidly now than ever before. Unrecognized changes expand the information gap between our perceptions and reality. The decisions we make have their result determined by how close, or far, our perceptions are to the reality of the world we live in.
For instance, did you know:
1. You can Self Direct IRA’s, 401K’s and other tax deferred retirement plans and use those funds to leverage acquisition of high performing real estate and watch your assets grow unhindered by taxation.
2. If you have stocks bonds or mutual funds you can often Pledge (Not Borrow) that asset as a down payment on real estate but never take it out of the funds they are in. In effect you can double dip!
3. Banks make money through something called Arbitrage and so can you.
4. You have hidden assets you didn’t know you had. In fact you have all the financial assets you need to achieve any goal you desire.
5. The Return On Investment for Home Equity is Zero.
6. The Effective Rate you are paying on a fixed rate mortgage changes from one year to the next.
7. Of the ways that the financial planning industry are allowed to report the performance of your investments under their management at least 9 of the 13 can make it look like you are getting a better return than you are. Sometimes you are actually losing money when they report a gain.
Through knowledge of truths like this, and much more, you can turn the financial table in your …