Client Tom tags me in a Facebook post titled “Savers Are Losers,” posted by Robert Kiyosaki (the Rich Dad, Poor Dad guy):
“Hey David Lewis, “savers are losers” lololol.“
You know what else is funny?
A few months ago, I started chatting with one of Kiyosaki‘s financial advisors (she was helping me understand some arcane aspect of the financial calculators I use in my business).
She’s a really smart lady, registered investment advisor, certified financial planner… and all around cool person. A real guru (not a geew roo).
Anyway, I’ve never read the Rich Dad series (BLASPHEMER! I know…) but I do have it on good authority that one of the reasons Rich Dad is so stinkin’ riiiaatch is because he purchased a LOT of whole life insurance from his financial advisor lady (in addition to investing in real estate).
He saves money.
But… I do “get” where he’s going with his post (and video).
People who stash moolah in banks, CDs, money markets, and yes sometimes even the stock market, IRAs, 401(k)s, and so on…
Those people ARE losers.
No… they’re not morally bankrupt or anything…
What they’re losing is interest on savings… and sometimes their entire life’s savings… or their money is earning less than inflation while sitting in “jail.”
… they’re missing a lot of opportunities by playing the “buy-and-hold” speculation game (they’re buying an asset at one price and hoping they can sell it at a higher price later)… and LOSING out on a lot of income they could have had by banking on future (unknown) tax rates and retirement plan rulez.
There’s also the not-so-small matter of opportunity cost.
People using conventional financial planning strategies use “OR” assets…
What’s an “OR” asset?
Say you have $10,000. You want to put this money somewhere… You can diversify it … or whatever the cool kids are doing these days… but basically $1 does 1 job.
You can put the money into savings accounts OR bank CDs OR stocks OR mutual funds…
These types of assets tend to be expensive over the long-term.
In today’s market… that cost is YUGE.
And you don’t need big hands to understand that one.
Anywho, me and my clients use an “AND” asset…
An “AND” asset is something that allows you to use $1 MULTIPLE times… it’s not magic, but sometimes feels like it…
So, it would work like this:
$10,000 in life insurance cash values AND can pay off $10,000 in debt… life insurance cash values AND stocks… AND mutual funds… AND real estate… AND… AND… AND…
When you do this correctly, you’re well-positioned to take advantage of pretty much any opportunity that comes along using the dullest and most UNpolished of all financial tools: life insurance.
You’re not counting your tax deductions and pinching your fees.
If that kind of thing seems blasé, it’s all Kool and The Gang.
Life insurance is not for everyone (and I do sincerely mean that).
If, however, you DO like the idea, then hop on my email list where I yammer on and on about a bunch of this geeky financial stuff-n-things.