INFLATION affects you way more than you think it does.
Most are of the opinion inflation is a good thing related to economic growth. IT IS NOT!
A simple SOLUTION will allow you to recapture LOST MONEY due to inflation and other reasons.
Inflation is created by the government. It’s a “HIDDEN” TAX, also referred to as an “IGNORANCE” TAX.
Inflation happens every time the government prints more money.
The government requires the Bank of Canada (BoC) to print more money every time it runs a deficit as it has 75% of the time – 3 out of every 4 years.
A DEFICIT occurs when the government spends more than it takes in.
Inflation also happens when banks loan money requiring BoC to print up to nine times more money than deposits due to something called FRACTIONAL RESERVE BANKING.
Inflation has turned $1 in 1935 into $0.05 today.
GOVERNMENT DEBT is the accumulation of the nations and provinces annual budget deficits.
This debt is inflationary because it devalues its value due to more money supply and the interest on the debt.
Current government debt has risen to $63,000 per person.
ROME is a perfect example of the impact of inflation. To pay for wars, Dictator Julius Caesar, initially started clipping edges off gold coins. Then, melting down gold coins and replaced stolen gold with less valuable metals. People noticed smaller and lighter coins and responded by increasing prices of items they were selling. This eventually lead to Rome’s economic collapse.
Debt has been described as financial SLAVERY. Mortgage = mort (dead) and gage (pledge). Assuming you have a choice, being a financial slave is NOT GOOD FINANCIAL PLANNING.
Good financial planning and borrowing involves you being in CONTROL.
When you use the services of a bank you give up control. When someone opens a bank account and makes a cash deposit, they surrender the legal title to the cash, and it becomes an asset of the bank, meaning you become a creditor of the bank. This is why the bank has 90 days to return your money in case of a “bank run”.
When you use investing services you also give up control of your money – to supply and demand, and other market forces beyond your control – that can lead to economic tsunamis – just like the latest May 9, 2022, caused by government interference with bank rate increases losing investors money.
If borrowing from a bank that uses Fractional Reserve banking is inflationary, where should you borrow from that is not inflationary? The correct answer is YOU.
Best practices include expressing your dissatisfaction of debt and inflation with politicians and business leaders. Most have no idea of how our banking system works.
At the same time, create and build savings (working capital) you can access (borrow from yourself on demand without ongoing credit qualification from a bank) without interrupting its compound interest. Paying cash for anything is like financing – opportunity cost lost on the growth this money would have grown to if not redeemed.
This strategy has proven people can recapture $800,000 for the average person over their lifetime
Those who don’t use this strategy unknowingly SABOTAGE themselves by donating this “LOST MONEY” to banks and other lenders – contributing to their profitability, not yours.
As with all taxes, planning is available to minimize its impact. In the case of inflation, few people do.
Other than providing advice to invest to stay ahead of taxes and inflation, most financial advisors, planners, trainers, and financial literacy don’t teach inflation as a significant problem.
THE MOST MISUNDERSTOOD, UNDER-UTILIZED
There is only one financial vehicle in this world that protects against inflation – and, no, it’s not gold.
This financial vehicle also creates the opportunity to recapture lost money, growth better than historic stock market index returns at substantially lower risk and fees, with guarantees, and protection from economic tsunamis. It also does not require adherence to the traditional retirement 4% safe withdrawal rule.
This financial vehicle is a PROPERLY DESIGNED DIVIDEND-PAYING WHOLE LIFE INSURANCE.
Wealthy people have used this vehicle for over 100 years – and it remains one of the best under-utilized financial vehicles today.
The life insurance company applies #1 Investment Rule – Don’t Lose Money by smoothing volatile market returns – by doing so removes significant risk for you.
Application of the INFINITE BANKING CONCEPT (IBC) strategy allows you the opportunity to recapture “lost money”.
Dividend-paying Whole Life Insurance and IBC are endorsed by many economists and accountants.
Its financial vehicles and strategies like this are why the wealthy continue to get wealthier, and why the non-wealthy fall further behind.
Many are missing out on this secret – it’s time for you and others to start to benefit by adding dividend-paying whole life insurance to your portfolio.
If you’re tired of the status quo not working, book a conversation here to start to catch up to the wealthy.
Related: The Austrian School of Economics