Before I begin let me say I personally attended Financial Peace University. Mr. Dave Ramsey provides some good basic sound advice such as spouses need to communicate about finances but I want to share a couple points that can make a MONUMENTAL impact on your financial future if you choose not to understand the TRUTH!
I have shared my points below & Mr. Ramsey is welcome to contact me anytime if he does not agree with me as I would welcome a discussion.
YOURMONEY is YOURRESPONSIBILITY - no one else but YOU!
HOW do you know if your financial strategy WILL WORK?
Where are those providing financial advice going to be when your financial strategy DOES NOT WORK?
You work hard to EARN YOUR MONEY so why not work just as hard to LEARN HOW to keep it?
The first point is ACTUAL ANNUALIZED RETURNvsAVERAGE ANNUALIZED RETURN! Here are a couple quotes from an article on Mr. Ramsey's website. Click HERE to read the full article.
"When Dave says you can expect to make a 12% return on your investments, he’s using a real number that’s based on the historical average annual return of the S&P 500."
"But that’s only part of the picture. In the 10-year period right before that (1990–1999) the S&P averaged 18% annually. Put the two decades together, and you get a respectable 8% average annual return."
Here is a very basic hypothetical example:
Say you had $100,000 & you invested in a "so called" good mutual fund & received a 100% return in year 1 - you now have $200,000.
Then in year 2 you take a 50% loss so you are now back to your original $100,000 in your account.
Now lets take the 100% gain & subtract the 50% loss & you have a 50% overall gain now divide that by the 2 years & you have a 25% AVERAGE ANNUALIZED RETURN but your ACTUAL ANNUALIZED RETURN was really $0.00& that is unfortunately the smoke and mirrors that has duped the unsuspecting individual, family or business owner. Now factor in the hidden fees from the videos on the Homepage & your return is NEGATIVE!
Click HERE to use a calculator (created by colleagues of mine) showing how inflation, taxes & losses in the market CAN & WILL have a detrimental affect on your financial future! You can create interesting scenarios with "Investor A" & "Investor B" on this calculator. You can use the following to login or register your own account. Username: truth Password: truth777
"Rule #1 - Never lose money. Rule #2 - Never forget Rule #1" - Warren Buffett So we have one of the wealthiest people in the world telling us to NEVER to lose money but the mainstream is telling us to put our money in WALL STREET! You have to wonder WHY is the mainstream advice telling us to risk OUR MONEY ???
By the way, Warren Buffet made his money by diligently researching companies before he bought their stock but eventually he would purchase controlling or major interest of stock in the company OR he would BUY the company! He was NOT in 401(k) Plans, mutual funds, etc.! He was really in the business of buying or having controlling interest of companies!
LIFE INSURANCE is the FOUNDATION for EVERY financial strategy, and the ultra-wealthy have used it for more than a century! They know it’s the most important asset in their portfolio from which they do EVERYTHING ELSE because they have LIQUIDITY & USE of THEIR money in the most VALUABLE TAX ADVANTAGED financial vehicle.
Business owners use the life insurance strategy for operating budgets / working capital to hedge against inflation and skyrocketing costs of employee benefits like healthcare and retirement plans. This strategy is not limited by “open enrollment” or third party management of 401(k) plans, for example. Business owners can maintain complete control of their own capital.
Bank of America (one of many banks) as of the 2001 FDIC report has over 19 BILLION in cash value life insurance they use as a hedge & working capital!
Here are Biblical points Mr. Ramsey misses with his advice:
"My people are destroyed for lack of knowledge: because thou hast rejected knowledge, I will also reject thee, that thou shalt be no priest to me: seeing thou hast forgotten the law of thy God, I will also forget thy children."- Hosea 4:6
My mentor (Nelson Nash - 86 years old - more about him on "The SOLUTION" page) has shared some profound Biblical insights with me.
Insight #1 - God & Jesus taught secession from governments that oppress the Citizens. He explained that in the Old Testament the Israelite's begged God for a king & He said I am your King but they kept pestering God so He gave them a king after He warned them that they would ultimately be in bondage to their human king/government! Then in the New Testament Jesus said when asked about paying tribute to Caesar - pay unto Caesar what is Caesar's & unto God what is God's! In other words we are supposed to be following God & His direction not the deceitfulness of man in our governments!
Look at the national debt of our country - how is this of GOD?
Satan uses governments controlled by a minority to enslave the majority & has been that way for a long time. Download below & read "Biblical Responsibility & Stewardship" that is a presentation by my mentor, Nelson Nash, in early 2018.
The really sad part is our Founding Fathers created the Constitution on Biblical principles & the basis is to treat other's the way we want to be treated & NOT OPPRESS ANYONE!
Our Founding Fathers risks their wealth & lives to give us a FREE country but WE have to take a stand to keep that FREEDOM not only for ourselves but future generations JUST AS THEY DID FOR US!
Our Founding Fathers knew that a government BIG enough to give you everything your want is STRONG enough to take everything you have! They set up a Biblical based form of government that followed the the 2 greatest commands to love the LORD first & then love our neighbor as our self on these 2 commands hang ALL the law & the prophets!
Ask yourself the following question - How are we loving our neighbor as our self when we have allowed a corrupt Congress to enslave us with a national debt that we are passing on to future generations when there is something we can do NOW?
"Then one of them, which was a lawyer, asked him a question, tempting him, and saying, Master, which is the great commandment in the law? Jesus said unto him,Thou shalt love the Lord thy God with all thy heart, and with all thy soul, and with all thy mind. This is the first and great commandment. And the second is like unto it, Thou shalt love thy neighbor as thyself. On these two commandments hang all the law and the prophets." — Matthew 22:35-40
Insight #2 - God made a covenant (contract/promise) with Israel that if they obeyed Him that He would be with them! What we teach with properly structured life insurance is like-minded people contracting with each other that keeps their money out of the corrupt banking system as much as possible & that minimizes inflation & with GOD'S help we can take back control of this country - more details on the Homepage &The SOLUTION page.
We have become a slave to the banks that control our monetary system with a debt based society just like the Israelite's became enslaved to Pharaoh because they did not plan for the famine but left it up to government handouts through Pharaoh!
Jesus turned over the tables of the money changers because they were debasing the currency & stealing from the people just like the modern day money changers - the Federal Reserve - in the USA!
"And Jesus went into the temple of God, and cast out all them that sold and bought in the temple, and overthrew the tables of the moneychangers, and the seats of them that sold doves." - Matthew 21:12
Some MAJOR fallacies with Mr. Ramsey's points on life insurance are:
He does not understand that your money is growing tax-deferred while you are alive that YOU can use to solve finance needs so you are recapturing what you are giving away to a lending institution or giving up the future growth on your money when you PAY CASH as he suggest.
You pass on more income TAX-FREE money than you could ever save in your lifetime with properly structured life insurance so your rate of return is EXTREMELY better than in a mutual fund, 401(k), etc.
Your mutual fund, 401(k), etc. does not have a TAX-FREE Death Benefit so if you pass on early in life your family or business may not have enough money to cover all the obligations you have now.
He does not consider in his advice that TAXES DESTROY WEALTH.
He does not understand that banks inflate the money supply through fractional reserve banking (loaning money they DO NOT have - COUNTERFEITING) whereas life insurance companies mutually owned by policy holders minimize inflation because they are REQUIRED to keep a full reserve meaning - if they loan $1,000 they are required to have $1,000 in reserve!
He does not understand that since the banks loan money they do not have that actually dilutes the dollars already in circulation! Example: in 1970 you could purchase 10 candy bars for $1 BUTtoday you cannot buy 1 candy bar for $1 the same size as in 1970 YET the candy bar factories have automated their factories & produce more candy bars today with less people so the candy bar SHOULD be cheaper - RIGHT? The Federal Reserve (banks) dilute the $1 & because we do not have a GOLD STANDARD anymore is WHY the candy bar is NOT cheaper!
Will there be Financial Peace in your future or a FINANCIAL NIGHTMARE?
The following 2 videos were presented by a colleague, Todd Langford. They will share WHY TAXES DESTROY WEALTH & WHY using Mr. Ramsey's strategy of paying cash to get out of debt instead of recycling your money through properly structured Dividend Paying Whole Life policy(s) will cause you to have less money in the future!
If you would like to learn more about making educated decisions for your financial future please complete the form below or you may call, text or email me.