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What do you think?
What do you think? I hit the search button in my car a few days ago and stopped at "The Dave Ramsey Show". This is what the caller had to say: "I own two different houses in Florida; one of them is worth $250,000, and the other one is worth $350,000. Both of these houses are paid for." "I own a transmission shop worth $400,000 and owe $70,000 on it. "I also own our current home which has a value of $350,000 and I owe $120,000 on it. "My wife works and brings home $90,000 after taxes and I work at my shop but have not been able to bring home any salary due to the economic downturn for the past 6 months." "I owe $90,000 on credit cards trying to float expenses at the shop due to the downturn." "My wife does not want to sell either of our properties in Florida because we would lose over 45% by the time we pay listing and seller fees." "What can we do?" Dave began ranting and raving about the wife of this man being so impracticable in this critical situation and then he recommended that this fellow should sell one of his Florida homes to get out of debt! This recommendation is disastrous for many reasons. Here are some: By mocking the wife, it assumes this fellow values money over her advice and concern. It assumes he can sell his property(s) in a very depressed market. It assumes that by simply paying off his debt he will not continue to incur more debt in his business. The next assumption is that the financial crisis is over. Furthermore, it goes against common sense by assuming that getting out of debt produces financial freedom. Now we will study the facts: If it were possible for this fellow to sell his house for 55% of what he has into it then he will be the receiver of $190,000 from the home that was worth $350,000, and less than that on the home that was worth $250,000 ($137,000.) This money will be enough to pay off his current debt and leave him with $47,500. If he has to continue spending money at the rate which he has in his business, this extra money will only last him about 3 months. Then he would find himself right back where he was, only this time he would be worse off, because he would have no equity to liquidate so that he could "bail himself out." Strike one Dave! Secondly, it is only an allusion to be debt free in the society of today. The only debt free people that I have seen are the people that are holding signs in parking lots and on the street corners. We really should just face the fact that nobody can be debt free unless they own absolutely nothing. If you own anything, than you face taxes, service fees, utilities etc. Guess What? This means that you have to live in debt. Strike two Dave. No one wants to be a homeless hobo. Thirdly, Dave, you ignored the fact that this caller obviously has some financial acumen. Just consider his entrepreneurial endeavors. Your hack attack was totally uncalled for and totally off base. The old attorney trick, if you cannot find fault with the deed attack the person behind the deed was employed here by you Dave. So, strike three Dave, you are out! Actually this fellow has made some very sound financial decisions as evidenced by his asset accumulation and business acumen. And I will wager that his wife was not just an incidental bystander during that time. To insult and mock her is totally assign. But what can you expect? Call an entertainer for financial advice and you will get what you called for, entertainment right? So what other way could help this caller besides prolonging bankruptcy by selling his property? Let us start with a little known, but nevertheless a true fact. Equity that is invested in real estate has no rate of return associated with it! The wealthy having known this for centuries have acted accordingly. This is the reason that the Infinite Banking Concept can be so beneficial to you. By Becoming Your Own banker you can have your money in a liquid form and secure place, still use the asset(s) which your money purchased and use the money that bought the asset(s) without penalization. Fact is, if you use the money for financing current needs and capital ventures... you will end up with even more money and assets with only one little caveat...you will not have to work any harder or longer to make that extra money because your money will be working too. So even though Ramsey rants and raves against it, participating whole life insurance is powerful tool available for anybody who is spending money today. Do not be fooled by the entertaining gurus who tell you otherwise. Who pays those entertainers? Bingo! It is the ones who are currently making money off you by using your money instead of you getting to use your own money to make money for you. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Tom McFie PhDis a professional financial coach and is nationaly known for helping people recover the money they currentley spend. Don't Make another payment until you have viewed his Infinite Banking Video Then Contact him he can help you |