Inflation Blindfold Conspiracy

Right now we have at least 14 million unemployed and growing. There is a high probability that unemployment could exceed its historic norm of 5 percent to 6 percent for several more years.

Our consumer price index (CPI) is way up. Our consumption of food, energy, clothing, recreation, education, transportation, toys, cosmetics, etc. makes up 58% of the Consumer Price Index with the housing market making up the other 42% and we know housing is down.  I don’t know if our leaders have gone to the grocery store lately or do a family budget and look at food as a line item but my family does  and what we are seeing is that prices are going up.

Everything is going up as we track our budget whether it’s education, health or life insurance, medical care, or our most precious groceries and water.  Yet the government keeps telling us there’s no inflation. Where are they shopping and are they doing it blindfolded?

The formula is quite simple and no wool pulled over your eyes should be able to keep you from the truth; even if media assists our government in this blindfolding experiment. First, our government borrows money from the Federal Reserve.Then the Federal Reserves says “sure we can help you out” and they loan the government some money. However, the Federal Reserve does not have any ‘real’ money but have control of the monetary system in this country and get the Treasury to fire up the printing presses and manufacture some money; or debt notes if you prefer.

The final stage is is where these dollars (debt notes) are created out of thin air and it gets its value by draining from existing money. Every time this new money or debt notes are manufactured and released, it takes away some of the value of the current money you’re holding; in essence it is stolen.

An example of how this effects you would be; you have $10,000 in a CD or the bank and most prognosticators agree the real effect of inflation is about 9.6%. Some even believe inflation it is running as high as 13%. However, we’ll stay with 9.6% to be conservative; perhaps even naive. So if you have this $10,000 in a CD or bank it would look like this

The Value of $10,000 with 9.6% inflation imposed on it for 5 years.

Ultimately the purchasing power of your savings; never mind the little interest it might acquire as it would have taxes to lessen it out. The purchasing power would be reduced by 36.8% in just five short years. By 2016 you will be left with just $6,323 out of your original $10,000 and have lost $3,677 just by doing nothing. This means things are not always about return which is nice and should be sought in tax-free environment going forward. But equally important is to consistently add to what you have and not lose anything. In other words, you need to protect principal, consistently and regularly add to your pot and try to eliminate as much tax imposed on it as legally possible. This 3 step process is a simple formula for wealth but many will not take advantage as it requires self-discipline and “know-how” on protecting principal and eliminating tax.

We teach seminars on smart money management and how to acquire corporate credit to fund your business aspirations and really succeed in what is now some of the toughest years in our country’s history. You have to ask this question – am I taking the right steps necessary to be able to retire? If you are not you will be working for the rest of your life and never taste true freedom which is to work on your own terms and time frame or choose to not work at all and know your family. Know  your family folks; how many of you can truly say you spend quality time with them and “know” them. I bet the number is resoundingly LOW.

We can help you as it is our life’s mission to reduce retirement poverty in this country and get those on track who will take the ” RED” pill rather than the “BLUE” pill (“ignorance is bliss”) and choose to not stay blindfolded in the dark but wake up.

James Burns

(866) 544-8825 Ext. 1 Office

Tax Free Retirement Cash Flow

Overfunding is a strategy that focuses on accumulating cash in the policy rather than paying for the death benefit which is the payout to your loved one’s when you pass away. This approach leverages the highest policy premium that is allowed with the lowest life insurance death benefit so that your cash accumulation exceeds your policy net insurance costs over at least 10 years. There are fundamentally 4 steps to determining the combination of maximum premiums and minimum death benefits necessary to selecting the most leveraged indexed universal life policy:

4. Finally, you must pay close attention to the maximum premiums allowable under the  Internal Revenue Code which is referred to as the seven-pay premium limitation.[1] As long as the total premiums for any seven-year period are equal to or less than the maximum allowable premiums for the seven-pay test,[2] you’ll be able to access the cash values in the policy at any time, tax-free and relatively liquid.

In essence, a life insurance contract that fails to meet the seven-pay test will be classified as a modified endowment contract (MEC). The seven-pay test is not met if the accumulated amount paid at any time during the first seven years is more than the total of the net level premiums that would normally have been paid on or before such time if the contract provided for paid-up future benefits after payment of seven level annual premiums

Want to see if this is a fit for you? If you’re healthy it may very well be a great tool in your arsenal to slay the bailout dragon for your retirement.