“Life is a banquet, and most poor suckers are starving to death.” Auntie Mame, 1958
Ed and Jean worked hard for almost fifty years, lived a frugal but fulfilling life, and raise eight good children. They didn’t sacrifice their financial life to the Debt Paradigm. They owned their home, had pensions from their work, both received social security and they kept a “rainy day” account that added up to over $100,000.
As they enter what should be the easy and relaxed life of the comfortably retired, a financial snake oil sales rep from one of the merchants of misinformation suggested that the equity in their home was not producing anything for them and that they should “harvest” that equity and invest it – and, of course, invest it with the sales rep making the pitch.
“It just makes sense.” the rep said, repeating the mantra of the Behomoths, “You can get an interest only mortgage on your home at 6% (I can get that for you and get paid to do so), invest the money (with me, and I’ll get paid again) at 8% (not guaranteed but, hey, the “market” always rises), get a tax deduction (if the dolts in Congress don’t remove it and/or raise taxes on your gain) and you’ll be doing what the really rich people do all the time.”
BUNK!
Rich people pay their debts and use the cash flow to save more money. When they invest they invest only small amounts of their savings. They do not invest from income – not even into a 401(k) or equivalent. If tax laws change or the market tanks or the real esatate bubble bursts (as it just has and still is – the worst is yet to come) their money is safe, their income is safe, their homes are safe, their investments are protected with prudence and they are living the banquet.
The “poor suckers” who are “starving to death” are the ones who believed the sales rep and followed his or her advice. Here’s a rule of thumb that has proven accurate for as long as people have been investing and saving; if a sales rep shows you a plan that requires you to reorganize a successful personal economy because by doing so you would be doing what the truly welathy do, run to the door without looking back. You are about to be scammed.
What the truly successful do – and have done for millennia – is save first. They create their own security in four specific areas:
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they are free from debt-to-others
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they have income they don’t have to work for and can’t outlive
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they have money readily available to deal with life’s surprisingly unsurprising surprises
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they have created a legacy of wisdom and wealth to pass on to those they care about
The process they use to achieve these very achievable goals is clearly described in Money for Life…in good times and bad – How to Thrive in the 21st Century. The products and information that are available today, combined with the wisdom derived from the past, flow together in proper measure in this book. You can easily apply them to your situation.
Don’t be one of the “poor suckers.” Your life can be a banquet –> www.TheMoneyForLifeBook.com
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