"Can You Briefly Explain Bank On Yourself To Me Via Email?"

I received an email today from someone interested in learning more about Bank On Yourself.  We've been playing phone tag.  Actually, it's been more one sided.  I left my 3rd and final voice mail on Monday.

Here's what she wrote today:


Hi John,

I am so sorry I have not returned your phone calls. I have very limited time & I honestly I just suck at phone calls.

I am interested in learning more. I heard of this from my aunt & am curious as to what it is as I do have a daughter who will be college ready in a few years.

Can you briefly explain to me via email..?

 
Here was my reply:

I’ll try to keep it simple.

Bank On Yourself is a savings strategy that allows you to grow your money without risk of loss and without risk of taxes.  You have access to your cash values for any reason and at any time.  There are no penalties like with a 401k/IRA before age 59.5.  The true beauty of the system is that your money grows uninterrupted for the rest of your life, even when you use it make large purchases, pay off debt, or invest elsewhere.   It’s not like putting money in the bank where once you spend it, you have to start all over again. 

There are rules of course.

1.        You must be able to think long-term.

2.       You have to commit to capitalizing your bank to the best of your ability (Be a saver!).

3.       Don’t steal from yourself (always pay yourself back with interest).

4.       Stop working with traditional banks (they are the prime source of all financial problems).

If you can do these 4 things, I can help put together a plan that will not require any luck, skill or guesswork to grow your net worth.

That’s Bank On Yourself in a nutshell.  Let me know if we should talk.

Best,

John

John A. Montoya

JLM Wealth Strategies, Inc.

john@JLMws.com

(925) 386-6639 Office

Authorized Advisor-Bank on Yourself®

CA Life#0C42222

DRE #01390017

Help me promote financial literacy in your workplace, church, or organization.  Ask me what SOFA is all about!

Baby Boomers Reveal Their Deepest Financial Regrets

Two impact statements from this article:

"Worse yet is that I am college educated but still had no financial knowledge."

"Then the market tanked and I had no safe haven for my hard earned money."

Guess what two things I focus on in my practice... Truth is simple.


http://yhoo.it/121aiOT

 

What Have I Done? Baby Boomers Reveal Their Deepest Financial Regrets

yhoo.it

Over 50, underfunded, and ill-prepared for retirement. Unfortunately, that’s an all-too-common scenario for the Baby Boomer generation – those born between 1946 and 1964 -- many of whom are still smarting

Protecting Yourself From Confiscation

Via Robert Mish, from Steven Saville's  http://www.speculative-investor.com

Protecting yourself against government confiscation

Government confiscation of wealth can take many forms. Here are some examples:

1) Taxes, duties and royalties

2) Nationalisation of assets

3) The forced exchange of one asset for another of lesser value, such as the compulsory exchange of gold for dollars in the US in 1933 and pension funds in some countries being forced to invest in government debt.

4) The arbitrary impositions of laws and regulations that reduce the values of investments

5) Capital controls that prevent money from being transferred to a more desirable location, thus ensuring that the money remains available to the government for future harvesting via taxation or forced investment in government debt.

6) Licenses and fines

7) Price controls

8) Inflation

Specific and detailed tactics for protecting yourself against government confiscation are outside the scope of the TSI newsletter and largely outside our expertise (our specific tactical knowledge is mostly limited to our personal experience and would not be relevant to the majority of our readers), but in general terms it boils down to internationalising yourself and your assets.

Internationalising your assets involves spreading your wealth over multiple political regions, such that no single government can take an action that jeopardises your financial well-being. To be a little more specific, it makes sense to spread assets/investments between North America (the US and Canada), Asia (mainly Singapore and Hong Kong), the Asia-Pacific region (Australia and New Zealand), and parts of non-euro Europe (e.g., Switzerland and the UK). Some countries in Central and South America (Mexico, Panama and Chile being three examples) could also make suitable homes for a portion of your capital. The extent to which you spread your wealth geographically will, of course, depend on how much wealth you have. The more wealth you have, the greater your need for international diversification.

Internationalising yourself involves having at least two official travel documents and is of greatest importance if you are a US citizen, the reason being that if you only have a US passport then internationalising your assets will be far more difficult than it should be. This is because the actions of the US government have transformed US passport-holders into pariahs from the perspective of most financial institutions outside the US.

Confiscation via inflation is the one form of government theft that you can't effectively protect yourself against by internationalising your assets, because all major currencies are being inflated aggressively. With there being widespread commitment to the wrongheaded belief that a strong currency is a liability, this is unlikely to change in the foreseeable future.

There's No Point In Fixing A 401k Lemon (When There's Already A Better Alternative!)

I happened to read an article on Kiplinger.com today about overhauling the 401k.  I say "happened to" because it appeared on a friends Facebook timeline.  I wouldn't normally read mainstream drivel especially when coming from a Wall Street blowhard site like Kiplinger's but the title "Bold 401(k) Overhaul" caught my attention.  I knew I'd be disappointed and in that regard the article succeeded mightily.  The proposed ideas would only exacerbate the problem 401k's create in the first place. (By the way, I do offer a better alternative rather than just criticize the 401k to pieces.)  These problems are highlighted below by yours truly who felt compelled to reply to NickV's comment:


"Wow, so many negative comments on 401k's. I thank my lucky stars that my wife and I have them. We are middle class and at age 50, we have accumulated $2M so far. To all the people who think the game is rigged, good luck living on SS in your golden years."

My reply:

"I ran some numbers using a 401k calculator (on dinkytown.net) assuming you've contributed 20% of income starting at age 22 with a $70k salary increasing at 4%/yr. I also assumed your employer has been giving you a 50% match up to 6% of your contributions. You would need an annual (not average) rate of return 3.8% to reach $1m in your 401k after 28 years. Multiply that by 2 to equal $2m that you and your wife have accumulated. 

My point is that you've taken an absurd amount of market risk to earn a paltry 3.8% annual return after expenses. As you get older, you'll have to reduce your risk exposure even further which will lower your rate of return even further. You could have paid your income taxes upfront instead of postponing that tax bill for retirement and seen your after tax contributions achieve an internal rate of return closer to 5% without any market risk in a dividend paying whole life policy structured with at least 60% of premiums in Paid Up Additions. You would have also received lifetime death benefit protection for each of you, and no penalties or taxable consequences for using your money anytime along the way. 

People are steered toward 401k plans but they lock up your money, put it at risk, and force you to pay taxes on your distributions. Tell me how your 401k option is better than the plan I use that provides me with 100% use and control of my money, guaranteed growth, tax free use of my money including retirement income, protection for my family and I get it without any luck, skill, or guesswork needed with a 401k. 

The game is rigged Nick. You could have done a lot better without all the risk. Wall Street and Kiplinger's would hate to lose you as a client though which is probably why they'll keep feeding you the same lines about maxing 401k's, dollar cost averaging, buy term and invest the difference, you'll be in a lower tax bracket when you retire... all conventional wisdom that has burned millions of people who keep doing the same thing and expecting different results. By the way, you don't have $2m in your 401k. The IRS has probably around 25% or more claim on it assuming tax brackets don't rise (big assumption for a revenue starved government) and don't forget your state income taxes, too. I do sincerely wish you the best with your plan."

The goal of sharing my reply to NickV is to educate people about options since so many people believe a 401k plan is the only retirement plan available.  As an authorized advisor with Bank on Yourself, I can assure you there is at least one other solution you probably haven't heard of and no Wall Street advisor will ever share with you.

To learn more about how I help people move away from the roller coaster ride of a 401k retirement plan and teach them about Infinite Banking, please contact me at www.IBC.guru.

Thank you,

John Montoya

Taxes, Taxes & More Taxes

Tax his land,
Tax his bed,
Tax the table,
At which he's fed.

Tax his tractor,
Tax his mule,
Teach him taxes
Are the rule.

Tax his work,
Tax his pay,
He works for
peanuts anyway!

Tax his cow,
Tax his goat,
Tax his pants,
Tax his coat.

Tax his ties,
Tax his shirt,
Tax his work,
Tax his dirt.

Tax his tobacco,
Tax his drink,
Tax him if he
Tries to think.

Tax his cigars,
Tax his beers,
If he cries
Tax his tears.

Tax his car,
Tax his gas,
Find other ways
To tax his ass.

Tax all he has
Then let him know
That you won't be done
Till he has no dough.

When he screams and hollers;
Then tax him some more,
Tax him till
He's good and sore.

Then tax his coffin,
Tax his grave,
Tax the sod in
Which he's laid...

Put these words
Upon his tomb,
'Taxes drove me
to my doom...'

When he's gone,
Do not relax,
Its time to apply
The inheritance tax.
Accounts Receivable Tax
Building Permit Tax
CDL license Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Excise Taxes
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax (currently 44.75 cents per gallon)
Gross Receipts Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges IRS Penalties (tax on top of tax)
Liquor Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Personal Property Tax
Property Tax
Real Estate Tax
Service Charge Tax
Social Security Tax
Road Usage Tax
Recreational Vehicle Tax
Sales Tax
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal Universal Service Fee Tax
Telephone Federal, State and Local Surcharge Taxes
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Nonrecurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax

STILL THINK THIS IS FUNNY?
Not one of these taxes existed 100 years ago, & our nation was the most prosperous in the world. We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids.

What in the heck happened? Can you spell 'politicians?'
I hope this goes around THE USA at least 545 times!!! YOU can help it get there!!!

GO AHEAD. . . BE AN AMERICAN!!!

SEND THIS TO EVERYONE YOU KNOW