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Unintended Consequences

I was humbled to be able to attend a conference on teaching people how money works this last weekend. I was awakened to common sense thinking about money and how it is used as leverage in ones life. Many have been sold traditional investing methods that have taken so much from many good people. Amount invested + time + rate of return = results doesn't work anymore. Average rates of return calculators that try to predict ones wealth have broken the backs of many of our families dreams.

The public can awaken to this fact by just doing simple math. The fact of the matter is that rates of return do not matter anymore. The lost decade of return has netted 1-2%. Numbers tell us that we need 12.8% return before taxes to just stay ahead of the value of the dollar. As you can see, rates of return have become negligible due to inflation and taxing of the American dollar. The impact of the market has destroyed many hopes of retirement and yet they continue to count on this financial roulette wheel of life.

I hope this message reaches those that need it most. We need leverage in life to maximize our efforts. The NASDAQ creates a positive return 2/3 of the time. That's like loading a gun with 4/6 bullets, putting it to your head, and taking your chances. Is that any way to plan for our future? There are different options to get leverage in your life. It has nothing to do with products sold, salesmen, or "get rich quick" schemes. It has to do with logical and common sense strategy that has been around for years, however, few have implemented or even know about.

If you could know the key to creating leverage in the financial part of your life, would you rather know now or just continue picking that next stock, bond, or mutual fund? You are the one holding the gun. You decide. I believe in the freedom and hopes of our nation. I believe due to the controlling government and their control on the financial market (postponing qualified plan taxes which result in less retirement dollars for hard working individuals, but guaranteeing money in their pocket). We need to be finding unnecessary wealth transfers that we are currently doing in our lives and harvesting their power in our lives. This leads to more tax free dollars now and in the future.

Take the time to study our nations demographics. Over 50% of the workforce will be leaving due to the baby boomers continuing to retire. This leads to a large part of our population entering our nations entitlement programs. If we cannot keep up with this unfunded liability now, how will 50% of the workforce fund this liability? This begs the questions of what taxes will do or should I say "must do". Do you think they will go up or stay the same in the future? Taxes are obviously one of the largest transfers that we encounter in our lives. What if you could minimize that transfer in your lives and transfer more wealth to you and your family? You can and its your decision.

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