In 1938 when the Yellow River in China flooded, it was America who came to the rescue with money and manpower. The same happened when the Nile, Amazon, Ganges and Niger rivers flooded destroying land, and killing lives and crops. Throughout our history, America has come to the rescue of the world. But who pours money and human resources into America when our rivers flood or tornados, hurricanes and fires devastate our land, end lives and destroy our crops?
This is the story of America. We tend to be benevolent to our own demise. In our efforts to bring wealth, prosperity and democracy to the world, we often fail to look after our own needs mainly because we are too busy attempting to care for others. This weakness has become the log in our own eye which prevents us from truly helping others remove the spec from theirs. And we have paid the price for our benevolence with a debt of over twenty-eight trillion dollars ($28,651,870,000,000.)
The Infinite Banking Concept (IBC) is about taking care of the log in our own eye so that we can freely create the resources and the money to truly help others without wrecking ourselves. R. Nelson Nash frequently referenced Shawn Tully’s 1993 article, The Real Key to Creating Wealth, in the September issue of Fortune Magazine. Tully outlined in that article what he called, Economic Value Added, (EVA) which is simply the idea of considering the cost of using our own resources.
Today, financial advisors and planners, ignore or even ridicule the value of having participating whole life insurance in a portfolio because they purport it doesn’t produce a high enough return. This is the log in the financial advisors’ and planners’ eye which is keeping them from creating the wealth Shawn Tully clearly demonstrated in his EVA model. However, careful consideration of the cost of using your own resources will eliminate this log and provide you with the perfect vision you need to build the sustainable wealth necessary for your future.
Consider running a lemonade stand. What would happen if you, your friends and family all drank the lemonade before any customers were served? What kind of wealth would such a lemonade stand create? We are instructed that “All hard work brings a profit while mere talk leads to poverty.” But drinking all the lemonade up before the first customer was served, means this wasn’t a lemonade stand was merely a party which you hosted for your friends and family to enjoy drinking lemonade, not a wealth builder.
When, even in benevolence, we give away what we should have managed, we must deal with the consequences. If we want to host a party, then it is going to cost us. If we insist on giving away the resources, we should have managed to create greater wealth, we become fools as this puts us in the position of becoming dependent on others for our daily needs. Financial planners and advisors can talk about the great rates of return and how many times they beat the market averages but what really matters is the actual yield. This is something no investment advisor or planner can provide you in advance because there is NO guaranteed actual yield before the investment has been cashed out.
Participating whole life insurance, on the other hand, provides the actual value of the policy at any given time and for the entire lifetime of the contract. IBC uses participating whole life insurance because it provides these guarantees which helps policyholders manage their financial resources better and more profitably. By providing a constant, guaranteed return on premiums paid plus dividends, policyholders benefit from higher yields and returns when making identical investments which financial planners and advisors advocate for their clients. The reason for this is policyholders who own participating whole life are using Tully’s EVA model to create wealth by recovering the cost of their own capital (money). The constant guarantees plus dividends of the participating whole life insurance keeps the policyholder’s money growing while their investments earn the same rate of return as non-policyholders who have given up the growth the policy could have provided them when they used their own money to invest.
As Americans we need to realize that giving money away is not always the best we can do. In the late 1800’s, British author Anne Isabella Ritchie wrote in her book Mrs. Dymond saying, “If you give a man a fish, he eats for a day; If you teach a man to fish, he eats for a lifetime.” Giving away the money we could have had, by not owing participating whole life insurance, has cost Americans trillions of dollars over the years. In 2019 alone, $122 billion dollars was spent on credit card interest. With a good participating whole life insurance policy and a basic understanding of the IBC, this interest could have remained in the pockets of those who spent that $122 billion, instead of this money ending up in the hands of the bankers and credit card companies.
IBC is about teaching people to fish. Financial advisors and planners are in the business of giving money away at the highest rate or returns they can manage to give, and not necessarily to those whose money they are managing. It is up to you to learn the difference between fishing and gifting. Call 702-660-700 and take charge of the money in your life so that you won’t become dependent on others for your daily needs. Don’t be like 90% of today’s American seniors who are reliant on the taxes and benevolence of others for their daily needs.
Dr. Tomas P. McFie
Most Americans depend on Social Security for retirement income. Even when people think they’re saving money, taxes, fees, investment losses and market volatility take most of their money away. Tom McFie is the founder of Life Benefits which helps people keep more of the money they make, so they can have financial peace of mind. His latest book, How to Build Sustainable Wealth, can be purchased here.