If you have not noticed, I try to educate a lot on how money in 10 years from now will not be the same in value due to high inflation. So their is a HUGE need to put your hard earned money in assets that do the work for you.
I read a cute story on how a couple bounces back from job layoffs to save for retirement.
The couple went with a financial advisor to get an idea on how to not only get by, but to prosper. One of the main deficiencies in the couples plan was... Life Insurance.
The other thing is... most American households do not really understand how to leverage life insurance to pay themselves monthly, while alive. Yes, enjoy the fruits of your labor and invest in your life insurance.
I go into sharing this technique here on my Facebook page.
===> Here's How The Ultra Rich Leverage Life Insurance
As for the couple... here is a little of their story:
Architect Cary Westerbeck is eager to draw up some plans for his family's future. At 40, he's rebounding after being laid off in 2009 by the firm he'd worked with for five years.
Unable to find a new job, Cary launched his own business, which has been steadily increasing as he builds a client base and the economy recovers.
Though Cary said losing his job was ultimately freeing, he and his wife, Julie Westerbeck, had to take a hard look at how they were going to cover their estimated $6,500 in monthly expenses.
"I make one-half to three-quarters of what I used to," Cary wrote in an online survey to participate in a free financial makeover. "Yet we have retirements to fund and two kids' college educations to fund."
That $6,500 figure includes the $1,600 monthly mortgage on their North King County home, Cary's student-loan payment, living expenses and payments on about $4,600 in credit-card debt. The Westerbecks also pay $212 a month to Washington's Guaranteed Education Tuition (GET) program to purchase units worth three years of in-state college tuition for their 7-year-old daughter Leah. They'll pay this amount until Leah turns 18.
Fortunately, as a teacher with 18 years of experience, a master's degree and a special certificate, Julie earns near the top of her district's pay scale, about $75,000 a year.
But since the birth of their second daughter last summer, she's been working 80 percent of a full-time job at her school, plus they have additional child-care expenses. Cary says he cut some insurance coverage, stopped contributing to his IRA and put off fixing the roof of their house while they reduced household expenses wherever they could.
"We weren't really 'budget people' until we were forced to be," Julie said.
Julie's contributions to her retirement plan at work are mandatory, and her balance is just over $100,000, but Cary's IRAs contain just $20,000 and he's only recently been able to resume putting $100 a month into one.
Still, he has the niggling sense that they are maintaining what they have, but not really getting ahead. Soon, they hope to be able to start purchasing GET credits for Lana, the baby.
Cary and Julie both said they would appreciate a blueprint for their finances to make sure they are being responsible with their money. Cary also says he's at a loss to know how much life or disability insurance they really need.
"We aren't doing badly, nor are we thriving," Cary wrote. "We probably have enough to get by if we do things right, but we don't always know what that is."You can read the rest of their story here.
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As for you.... why I am writing this is because many Americans are either struggling or just getting by without any real improvement.
Having a system to put your savings into a better returning asset is critical. What I always preach about from my dinner chats with the Ultra Rich is consider a life insurance which pays you monthly.
Then... you can turn this life insurance into your own bank. This is called "Infinite Banking" and the rich do it all the time.
More on that in my next post....
For now, feel free to add me as a friend on facebook and send me your questions.
Also, share this unique method with friends and loved ones.
There are various types of universal life insurance they all have some common attributes. You pay an insurance company what are called premiums. At your death, the life insurance company pays an amount to the people you named in your policy, called beneficiaries. Also it's interesting that if you named a beneficiary(ies) they'd receive the insurance amount free of income tax.
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