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Financial Guru or Entertainer

Latest Articles - Affordable Life Insurance

"... You choose"

by TomasMcFie

"... You choose"

Touching the search button on my car radio the other day I came upon "The Dave Ramsey Show". There was someone that had called in, and what follows, is the story that they had to tell:

"I own two houses in Florida, one worth $350,000 the other $250,000. Both are paid for."

"I own a transmission shop worth $400,000 and owe $70,000 on it.

"I also own our current home which has a value of $350,000 and I owe $120,000 on it.

"My wife makes $90,000 per year, after taxes, and I work at my transmission shop, but for the past six months during this economic downturn, I have not been able to bring home a salary."

"Due to the economic downturn, I have been trying to float expenses at the shop, and I have incurred $90,000"

"My wife does not want to sell any of the houses that we own in Florida because, by the time we pay listing and seller fees, we will be losing 45%."

"What should we do?"

Dave began ranting and raving about the wife of this man being so impracticable in this critical situation and then he recommended that this fellow should sell one of his Florida homes to get out of debt! This recommendation is disastrous for many reasons. Here are some:

It assumes he values money over his relationship with his wife by mocking her concern and advice.

Next it assumes that, in a very depressed market he will be able to sell his property(s).

It also assumes that if he pays of his debt he will not incur any further debt in his business.

The next assumption is that the financial crisis is over.

It goes against common sense by assuming that getting out of debt produces financial freedom.

But let us only concern ourselves with the facts:

Suppose this gentleman could sell his house for 55% of what he has in it. He will receive the utmost ($190,000) on the $350,000 home, and ($137,000) which is even less, on his $250,000 home. He can then pay off his debt and then he will have $47,500 left over. If he keeps spending money at the same rate, in his business, this money will last him about 3 months. He will then find himself at the same place he started only this time worse. He will have no equity that he can liquidate, to save himself, therefore he will go back into debt. Strike one Dave!

Secondly, being debt free in the society of our day is an allusion. The only debt free individuals that I know are the ones holding signs at the corners of parking lots and intersections. Let us face it, in our society a person cannot be debt free unless they own nothing. Own anything and you face taxes, utilities, services fees etc. Guess what? That means to live you have debt. Strike two Dave. Nobody wants to be a street beggar.

Now in the third place Dave, you have completely ignored the fact that this man that called in has had some sort of financial plan. When you look at his entrepreneurial endeavors this becomes obvious. Your hack attack at his wife was self degrading and certainly unacceptable. The attorney trick was employed by you. If you cannot find fault with the deed attack the person behind the deed. This makes strike three Dave, you are out!

If you will consider this fellows situation it will become apparent that he has made some very sound financial decisions, otherwise where would the asset accumulation come from? And I would seriously doubt that his wife was just an onlooker in this financial expansion. For Dave to insult her, and mock her was totally wrong. But what can you expect if you call a group entertainer for financial council?

So what other way could help this caller besides prolonging bankruptcy by selling his property?

Let us start with a little known, but nevertheless a true fact. Equity that is invested in real estate has no rate of return associated with it! The wealthy having known this for centuries have acted accordingly. This is the reason that the Infinite Banking Concept can be so beneficial to you. By Becoming Your Own banker you can have your money in a liquid form and secure place, still use the asset(s) which your money purchased and use the money that bought the asset(s) without penalization. Fact is, if you use the money for financing current needs and capital ventures... you will end up with even more money and assets with only one little caveat...you will not have to work any harder or longer to make that extra money because your money will be working too.

So even though Ramsey rants and raves against it, participating whole life insurance is powerful tool available for anybody who is spending money today. Do not be fooled by the entertaining gurus who tell you otherwise. Who pays those entertainers? Bingo! It is the ones who are currently making money off you by using your money instead of you getting to use your own money to make money for you.

About the Author:

Tomas McFie is a professional financial coach and is nationaly known for helping people recover the money they currentley spend. Don't Make another payment until you have watched his Infinite Banking Video Then Contact him he can help you