Who’s Really in Control of Your Money?
Have you ever thought about who’s really in control of your money? Income and savings are typically held by the financial institutions, and in most cases inside of government plans.
We like to think because we choose our investments or decide how to pay for things, that we are in control.
But, when you think about it, our money is either held in the bank or qualified plans dictated by the IRS (ie 401k, 403b, IRA, SEP, ROTH, etc).
Our current system for saving and accumulating wealth is heavily weighted in favor of the financial institutions.
Our educational system, our accounting system, and the financial advisors, are all dependent on the government and these same financial institutions. We are being held captive.
Worse, these investments are controlled by market forces. It’s an eye opener when we face the reality that we have little control.
Where Does the Money Go?
When I meet with clients for the first time, very few know where the money invested in their retirement plan goes. The phrase out of sight, out of mind comes to memory.
The stocks inside the mutual funds, inside these government plans, are usually from corporations that the vast majority of people would normally not invest in on their own.
Meaning they are indirectly supporting causes they may or may not agree with.
When the regular deduction from a paycheck goes into a 401k, IRA and the like, they are supporting the corporations and institutions that are a part of that mutual fund.
Whether we know it or not, we’re investing in those companies.
Follow the Money…
Unfortunately, corporations, organizations and anyone with influence have succumb to the power and appeal offered by others.
Politicians are writing laws, businesses are hiring employees, organizations are recruiting our children, and we are being called on to support issues and causes.
These causes are not always what they appear to be. More often than not, their names do not even characterize their stated goals. And, their goals are coming to fruition, like it or not.
Money is a temptation that most can not resist. Whether, directly or indirectly, all organizations need funding to survive. This funding comes in many forms, and often no questions are even asked. But, when you follow the money trail, it can lead to unintended consequences.
The Allure of the Stock Market
Why do average people risk their hard earned money in stock markets they know little to nothing about? We’ve been told over and over that this is the best place to invest, and offers the highest returns.
Armed only with the results from a risk assessment, a friend’s stock pick, a market report from the media paid for by the financial institution itself, the average investor doesn’t have a chance.
Yet, the allure of earning double digit returns is so great people mask the risk.
I compare it to gambling since where I live you can literally cross a bridge and roll the dice at the casino, I make that comparison regularly.
False Returns
When you consider all of the real factors, very few people actually make money in the stock markets. The negative factors include inflation, timing, fees and taxes.
According to the well-respected research firm DALBAR, Inc., the average investor in mutual funds earned less than 3% per year over the last 30 years.
Even in 2018 with the overall markets going up, the firm reports that average investors actually lost money.
A Better Way
What if there were a better way? A way that you and your family could utilize your personal capital while it continued to increase in value?
A way to save where you were completely in control of the account, and you were a mutual owner in the company itself? A plan that offers dividends, yet is not publicly traded.
Throughout our lives we spend our money on items that we purchase, either by paying cash or by financing. Either way, we finance everything that we buy. Our money either earns interest, or we pay interest for the privilege of using someone else’s.
The problem is, when we finance with other financial institutions, our family loses the interest portion of every dollar spent forever.
However, by investing in yourself with your own private reserve the opposite is true, and you can build your family’s wealth perpetually.
How To Take Control of Your Money
The bottom line with money is control.
Unfortunately, when we invest in government plans managed by financial institutions, we lose control. They make the rules and they can change the rules.
Attorneys, accountants and the vast majority of financial advisors, produce elaborate plans, trusts and documents to create a sense of control.
But, these plans are vulnerable, they’re vulnerable because they only deter and defer the problems. They either create workarounds or they are based on rules that still leave the average person confused and uncertain.
So, the question becomes, do you want to be in control of your money?
Invest in Yourself
Take control of your finances and invest in yourself. Consider planning with your family’s future in mind and with proper financial education.
When you own your assets privately, you can have access to the capital on your terms. And, you can reduce your tax liabilities, so you and your family can experience financial freedom.
Learn how to take control of your money, schedule a personal financial review. Just follow this link and book your consultation: https://legacyinsuranceagency.com/financial-consultation
Until next time,
Barry Page, RFC
Barry Page is a Registered Financial Consultant, Managing General Agent and Founder of Legacy Insurance Agency, PLLC. He helps families take control of their finances and create financial independence.
Page has been cited on ABC, CBS, NBC and FOX for his work helping families and businesses with wealth building strategies to increase cash-flow, secure capital financing and provide tax-free retirement income.
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