If the market’s ups and downs are making you nervous, you must ask yourself -how much risk am I willing to take with my retirement dollars?  When you are thinking about retirement – the last thing you want to worry about is having enough money, but that is the situation many people find themselves in. Everyone knows someone who tried to retire in 2008 and had to delay or was retired and had to re-evaluate everything because of the enormous hit they took.
Learn from their mistakes, and don’t repeat them!

We always remind people that money in the market is an investment, not savings. You must realize market investments are always at significant risk and are anything but safe! There are places where your money can grow risk-free, and today, we will focus on one, Fixed Indexed Annuities (FIA.) An FIA is a retirement planning tool that guarantees income you can’t outlive. It is not where you want to put all your money – but if you want to keep a portion of the money you can’t afford to lose safe, you need to give Fixed Indexed Annuities serious consideration before it is too late!

Most people we work with have a pool of money they do not plan on touching until retirement.  They have set it aside expressly for this purpose in a qualified plan such as a 401k, 403B, TSP, or an IRA. This is money they cannot afford to lose, yet they haven’t stopped to consider the enormous risk of having it invested (not saved) in the market. IS THIS YOU? Too many times, we have conversations with clients that thought they were in good shape, riding high on their investments, but when they were ready to retire – there was a significant drop in the market, and a chunk of their hard-earned savings was gone, just like their dreams of a safe and happy retirement. 

There is a lot of misinformation by so-called financial experts surrounding FIAs. Do your homework and talk to people who have your best interest in mind! FIAs are a better option than the market when looking for a place to safely store and grow your money with no risk and a guaranteed income that you can’t outlive! A Fixed Indexed Annuity may be less exciting than the market – but you will not lose one cent of your principal, AND when the market is doing well, you will participate in the upsides.

Just like any product – there are good and bad annuities.  When someone says they don’t like annuities, they don’t know the difference between the plans being offered. This is why you must work with an experienced professional who knows the marketplace and can ensure that the recommended products meet your goals. Annuities are insurance products that are contractually guaranteed. Having annuities in your financial portfolio is an intelligent strategy, especially if you are close to or in retirement. Is it ever a mistake to keep your money safe?

This is what we know about the market’s future – it will go up, down, or stay the same. Wouldn’t it make sense to eliminate the downside risk and ensure you have genuine retirement savings, not investments you could lose?  If you can take away the very real threat of losing money and your only market exposure is making money or not losing money – wouldn’t you feel more confident and less stressed about your retirement?

Do not be caught off-guard! This year, we have seen strange volatility levels in the market, which only adds to fear and uncertainty.  FIAs offer safety and stability.  Compared to a down market, especially an ongoing one, you can see why an FIA shines even in a zero percent return scenario. An FIA should be considered an essential and strategic component of your overall retirement planning.

Not sure what to do next or if the timing is right? Give us a call, and let’s talk. We can review your current situation and explore and suggest safe options. 

Don’t wait, hoping the market will bounce back until you regain your losses. Act now because, unfortunately, things can get worse.

When you put your money in a Conventional bank – they immediately put that money to work, for them, not you! 

Banks need you way more than you need them! Think about it – why do banks exist? Yes, you can deposit your money there, and it is a reasonably safe place to keep your money, but banks are not in business to help you – banks are in business to make money, just like any other company.   And they are making money for their shareholders, not you! 

When you put your money in a bank account, the bank turns around and loans out (sells) your money! They put the money to work by lending it out for houses, cars, businesses, etc. Banks can’t loan money without you. Let’s talk about this a little more; as a depositor, you are a liability to the bank. What? Yes, when you deposit money into a bank, they must pay you interest. But then they take your money and loan it out; they receive interest on the loan (way more than what they are paying you for the privilege to use YOUR money), so a loan is a bank’s asset! 

For simple math, let’s say the bank pays you 4% interest on your savings with them. Now the bank can take your money and loan out nine dollars for every dollar they receive in deposits; this is called fractional lending. Here is an excellent explanation of fractional lending and how it came to be. So the bank makes several loans –  5% on a mortgage, 8% on a car loan, and 7% on an interest loan. You made 4% interest on your savings, and the bank made 20% interest on their loans. So I ask you- how much more did the bank make than you? Most people say 16%, but most people would be wrong. They made 500% more than you! 20% is 5 x more than 4%. Crazy, right?

Don’t you want to be the banker? You can – by implementing the Infinite Banking Concept. With IBC, you take control of the banking function in your life, so the money starts flowing to you and your family, not to the conventional bank’s shareholders! You can learn all about IBC by reading the book   “Becoming Your Own Banker” by Nelson Nash. 

You can use many tools to “Become Your Own Banker,” but as Nelson Nash taught us, the most efficient place is in a properly designed, High Cash Value, Dividend paying, Whole Life Insurance Policy.

Let’s be clear; we are not talking about a brick-and-mortar building or a federally regulated business. We are talking about using the strategies outlined in Nelson’s book. To build a pool of cash you control that you can borrow against that grows, guaranteed, uninterrupted 24 hours a day, 7 days a week, 365 days a year.

Instead of depositing money in the bank, you make deposits (pay the premium) to a Mutual Insurance Company. Why is a Mutual Insurance Company important? Because they do not have shareholders – they have policy owners. You become a fractional company owner when you purchase a whole life policy from the Mutual Insurance Company. Your policy grows, you build cash value, you receive interest on your money, and as a co-owner of the company, The Insurance Company will pay you a dividend if they make a profit, which they have done every year for over 150 years! 

The Insurance Company contractually guarantees your policy’s cash value; it can never be reduced or changed.

You have the contractual right to borrow money from the Insurance Company against your cash value. This is an important point – you borrow against your policy, not from your policy. Your money continues to grow, and you can use your loan to pay for an expense or an investment. Now your money is doing two things at once!  

Doesn’t it make sense to put your money where it works to grow your wealth and not bank shareholders?

You pay back into your own system, not someone else’s! So instead of the banking process working against you, you can have it working FOR you!

It is your money – take control of it! Would you like to learn how to make the banking process work for you and your family? Give us a call and let us answer your questions and help you get your bank started! 

The cost of fuel is affecting everyone! I have never thought about little things I could do to save a few cents here and there, but when we hit five bucks a gallon, we are definitely thinking about it! 

I have seen some great tips I wanted to share, some pretty interesting ones I had never considered! I hope you find these helpful!

• Use a gas app that tells you where the best price is. I was amazed last weekend to see prices ranging from 4.98 per gallon to $5.25. It pays to shop! GasBuddy, GasGuru, Waze, and Upside are easy to use. I looked at it this morning, and prices ranged from $4.89 to $5.02
• Drive slower! It may take you a little longer to get there – but the saving can add up
• Don’t let your tank get low – fill up at a half a tank
• Make sure you have Proper Tire pressure
• If you’re not using the racks on top of your vehicle – Remove them! Racks add extra weight and create wind resistance – both affect your gas mileage!
• Don’t haul around a bunch of stuff you are not using. If you have a box to drop off at the thrift shop, do it – don’t drive around with it for a week! Extra weight burns gas!
• Use a Rewards Gas Credit Card every time you fill up. If you are a Costco member, you can earn 4% in-store credit on the first $7000 you spend!
• Fill up early in the week – according to the surveys; gas prices tend to be lowest on Mondays and Tuesdays; weekends, Friday, Saturday, and Sunday are the highest.
• Obvious, but maybe something you haven’t considered – ride share, organize a carpool, use public transportation or ride your bike to work!
• Think about what route you are taking and “batch” your errands, so you make fewer trips.
• Use your cruise control – driving at a steady speed saves fuel and keeps you from exceeding the speed limit!
• Use your heater and air conditioning less – although there is debate about the drag on your car when windows are open if you are driving slower and around town, open your windows to cool off, over 30 MPH, roll up the windows, and use low air.
• Check your gas cap – a missing or lost cap allows gas to evaporate from your tank.
• Reduce your Idle Time – Don’t leave your car running while waiting for everything to get in. Don’t start the car until you are ready to go! According to Car.com, you don’t need to warm-up fuel-injected cars.   Only idle long enough to warm up or cool down the interior and get going!
• Use the correct grade of gas for your vehicle. Premium gas can cost 50cents more per gallon than regular, and according to the Feder Trade Commission, “using higher-octane gasoline that your owner’s manual recommends offers no benefit. It won’t make your car perform better, go faster, get better mileage, or run cleaner.”

We hope these tips will help take a little of the sting of what we are all feeling! Cheers to a summer filled with memories, fun times, sunny skies, and cool nights!

We want to help you get the most mileage out of every dollar you earn.

Contact us at 574-234-1980 to learn how your money can work for you by doing two things at once, every day, 24 hours a day, 365 days a year!

We sincerely appreciate our friends and loyal clients and hope you will help us continue to grow by forwarding this article to your friends, family, and co-workers. 

“There are two kinds of people; those who borrow money and those who lend it.”

Private lending is one of the oldest, most proven forms of investing; lending capital to another—perhaps someone who can’t get traditional bank financing—in exchange for interest.

A private lender lends money to helps borrowers:

• purchase real estate (for a mortgage or a short-term bridge loan until permanent financing is put into place.)
• rehab or improve commercial or residential real estate (again, often with a bridge loan)
• start or expand business ventures
• refinance credit cards or other debt
• or fund a host of other projects—from kitchen remodels to weddings

In recent decades, investing has become equated almost exclusively with stocks, bonds, and mutual funds. However, with the volatility in the stock market, it makes sense to diversify at least a portion of your portfolio with private lending strategies. Here are seven reasons to consider private lending:

1. Historically proven.

Private lending has been a reliable way of generating profits and cash flow for literally centuries. There is documentation of private lending agreements as early as 3,000 B.C., showing people loaning to others for defined periods of time in exchange for “interest” paid in wheat, livestock, shekels of silver, or other commodities. Interest rates of 20% – 40% were common in ancient times, though extraordinarily high rates became known as “usury” and became discouraged or outlawed.

Investors have learned that what goes up may go down… way down. After severe losses, many swear off the stock market and instead lend money to those who need capital.  Profits are steady and reliable, and it eliminates the risk of market crashes.

2. Predictable returns.

When you invest in the stock market, you are placing a bet that the price will go up.  Yet we know, historically,  many times things have gone horribly wrong, and fortunes have been lost.

When you loan money as a private lender, you have an agreement that specifies how much you’ll be paid and when. Properly constructed with protections and the right borrower, this delivers very predictable returns.

The exception? If your private lending deal is not constructed correctly or vetted, there is a chance of loss. That does not necessarily mean that you’ll lose your capital, but in cases where the borrower was paying you directly, a property could be foreclosed on and must be sold for you to be repaid.

3. Excellent cash flow.

In addition to passing the test of time, banks and other institutions that operate as lenders are some of the most profitable businesses in the world. Unfortunately, many people tend to be borrowers, not lenders! If you’ve got money to lend, congratulations, you can put it to good use.

In this low-interest environment, you can earn several times what your bank is paying without the unpredictability of the stock market. And if interest rates at banks go up, so do interest rates for private lenders. There will always be people who need to borrow money outside of mainstream channels.

Today, investors who want more income from their existing assets can earn high single-digit or low double-digit interest rates by becoming private lenders. In many cases, the monthly payment is contractually agreed upon, so you know exactly what cash flow you can expect. 

4. Diversification.

Not only does private lending help diversify a stock-heavy portfolio, but you can also diversify among different real estate investments such as a real estate bridge loan, a fractional investment in real estate (apartment building) equity, or a collection of peer lending loans.

5. A secured investment.

If you are lending on real estate, your investment will likely be secured by the property itself, perhaps with a first deed of trust, although there are several different ways that private lending deals can be structured. Just make sure you’re not last in a long line to be paid!

Whether you are lending directly or through a company that vets the deals, you’ll want an appraiser to verify that the property is worth substantially more than the amount you are lending. The lower the loan-to-value percentage, the more security you have for your investment.

In a worst-case scenario that requires a foreclosure, you could actually reap additional profit. Alternatively, many private lenders prefer to work with companies that manage the transaction and pay them directly, to reduce their risk.

Of course, not all private lending opportunities are secured by a real asset. In the case of peer lending, the borrower’s income and good credit may be  your “security.” Peer lending returns are tiered so that lower-risk loans (with high-credit score borrowers) pay less interest, while higher-risk loans pay more interest yet also have higher default rates.

6. Leveraged investment opportunities. 

It’s called arbitrage: By investing money you have borrowed at a lower rate to earn a higher rate, you can earn an exceptional rate of return and expand your investments. A couple of examples:

Let’s say you have a daughter who is getting settle in her first home. She purchased some furniture, window coverings, and appliances from various stores on credit.  Now she’s got $6000 of debt at rates of about 21%!

You hate to see her paying 21%. You borrow $6000 against your life insurance policy at 8% to take care of the debt, and they happily agree to pay you back at 10% interest. You are actually earning 25% on the money that you are borrowing, and she is saving interest big-time:

That’s a small, simple example. Let’s look at a large, lucrative one. You leverage your whole life cash value as collateral and borrow $50k from a bank at 5%. Then you put the money into a bridge loan earning 7%. Your rate of return is actually 40% on the money:

To understand this concept of arbitrage more thoroughly, watch this financial calculator video from Truth Concepts financial software developer Todd Langford, as he explains “How Banks Make Money.” (It’s not how most people think!)

Click to watch.

7. You look like a genius.

When—or if—you tell your friends you are going to be a private lender, chances are, they’ll be concerned for you. They’ll tell you it’s risky (and it can be if you do it yourself!) People may share horror stories or even try to talk you out of it.

But when you’re an experienced private lender, and you tell your friends that you’ve been collecting healthy cash flow for years, with none of the losses or stress of the stock market, they will want to know how they can do it too!

Would you like to turn an existing asset into steady, reliable cash flow? Become a private lender and use the investment strategy with the longest track record in history! Contact us at hello@neeserinsurance.com, Tom@neeserinsurance.com, or give us a call at 574-234-1980.  We will get you more detailed information and help you identify which options might work best for you.

We appreciate our loyal clients and hope that you will help us continue growing by referring your friends, family, and co-workers.  Please share our blog, website, and contact information with those that you think we could help! 

If you know me, or if you have been reading my blogs, you know I am a raving fan of IBC – The Infinite Banking Concept, as taught by R. Nelson Nash in his book “Becoming Your Own Banker.” 

Here are the five simple rules to IBC:

1. Think Long Range
2. Be generous in capitalizing your system
3. Don’t steal from your system
4. Don’t do business with banks
5. Rethink your thinking

While the process is simple, I couldn’t possibly do it justice by trying to explain the entire concept in this short article.  So today, we are going to focus on how IBC allows you to build your own pool of capital, and why it is the very best place to store and access your cash. 

One of my biggest concerns for people is their lack of knowledge about capital – not understanding what it is, how to grow it, or keep it.  You might ask – Why do I have to have capital?  What is capital?  How different people’s financial landscape would look if they were in control of their own capital!   This is a great thing to think about and even a better thing to talk about. 

So what is Capital?  Capital is Cash!  Most people do not have much in reserves (if any!) because they have become used to using other people’s money, paying interest, and are caught up in the cycle of buy now pay later.  Just imagine if you had a pool of cash that you could access whenever you needed it, for whatever reason – to make a significant purchase, cover a repair for your home,  pay tuition, or cover the cost of a family vacation – how great and stress-free would that be?

Why is having and controlling capital so important?  Because it can make you money, it provides security and flexibility, and it saves you money!   Without access to our own capital – we are stuck using other people’s money (banks) and are required to play by their rules.  We have no say in when we get the money, how much money we can get, how much money it will cost us to borrow the money, and when the money must be repaid!   Whether you are a business owner or an employee, there is no guarantee a bank will lend you the money you want or need.  You are required to prove your creditworthiness based on their criteria.  It does not matter how great of a relationship you have with YOUR banker, or how good your credit score is; if there is economic upheaval, you may or may not be granted access to their money; you have virtually no control!

In his book, Nelson asks, “How much of the banking function do you want to control in your life?” Most people do not have a ready response to this question because they have never thought about it before. We have been trained to use other people’s money and have never considered the concept that we could be our own banker!  The answer, though, is undeniable – ALL OF IT (see rule #4)!

If you have built up capital in your IBC designed policy, you have contractually guaranteed access to your money. How much can you borrow is based on the amount you have put in. Banking is about accumulating money and loaning it to yourself and paying yourself back with interest (Rule #3).  It is imperative to understand this principle – You finance everything you buy – you either pay interest to someone else, or you give up the interest you could have earned.

 Most people in America pay over 34% of every dollar in interest to someone else, and that money is lost forever from their personal economy. We have been brainwashed by hundreds of millions of dollars in advertising (financial noise) that we need to use other people’s money and not take the time to build up our own warehouse of wealth.  Another core principle that must be understood is this – there is always a cost of capital, even if it is your own money.  If you are going to act like a banker, you can’t treat your money like it is free.   We have been conditioned not to wait and save for something we want. Remember the first two rules of IBC “Think long term and Be generous in capitalizing your system.” Have you ever had too much money in your bank account?  Of Course not!  It may take a while to build your bank, but I promise you – the rewards and financial freedom that come with it is worth your time!

By building up a pool of money in your policy, you can mimic what banks do. You have a contractual right; you can never be denied access to borrow against the money that is in your plan. If you borrow against your cash value to invest in a real estate opportunity, while your money is still compounding and growing, you create velocity of money, just like banks do!  The growth is your policy is guaranteed.  And guess what?  It grows 24 hours a day, seven days a week, 365 days a year!  It does not matter if the market is up, down, or sideways!  I am an Authorized Infinite Banking Practitioner, and I help people every day set up specially designed polices just for them, their goals, their needs. 

I often hear from folks who are excited to start an IBC plan after reading Nelson’s book, but they think they must pay off all debts first. This seems to be a common misconception when someone first learns about the IBC strategy.  Let me help you understand why this is wrong –  If you say you are going to pay off everyone else before you pay yourself, aren’t you saying that their money is more valuable, more important than your money?  If you have debt or are considering a major expense, I can show you…no actually prove to you that by running your money through your plan first,  you will have increased control over debt repayment and get out of debt much faster.  You will have more to show for your efforts and free up cash flow to live the life you deserve to be living.

We have proprietary software that provides you with a roadmap to follow, step by step. Typically, our clients are out of debt in 9 years or less, including their mortgage, without spending any more money!  If you are open-minded and are willing to spend 15 minutes of your time, give me a call. 

As Zig Ziglar once said, “You don’t have to be great to start; you just have to start to be great!”  I want to help you create a GREAT financial future!

Additionally, stocks and bonds can subject you to MANY risks, including systemic stock market risk. Market crashes and corrections can bring sweeping losses to virtually every type of stock, yet typical financial advice tells you to subject MOST of your assets to the whims of the market. You’ve been trained to put your assets in stocks where a “diversified” portfolio won’t save you from a crash, correction, or bear market. (And note how the word “correction” minimizes this loss. We tend to think of a “correction” as a good thing—“a change made to something in order to correct or improve it,” says the Cambridge English Dictionary, as if losing 10% or 15% of an investment’s worth is somehow supposed to happen!)

Watch for our next article when we share with you a Better Model, a model that achieves greater balance and stability and better results for your money!

Get the Facts, Explore Your Options

Contact us at NeeserInsurance.com or give us a call at 574-234-1980, we are here and happy to help!