Rate of Return Comparison…

Rate of Return Comparison…

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Check out this short video by the best selling author of The Bank On Yourself Revolution and one of my fellow Bank On Yourself Advisors, Paul Nick, as they explain the real world rate of return comparison to other types of plans – using an actual policy purchased by Paul’s father in 1969. You just can’t argue with real world numbers!

If you’d like to see how a Bank On Yourself Plan will work out for you and your family, schedule a FREE financial analysis and strategy session today! http://www.jensley.com/free-analysis

Are Retirement Plan Fees Killing You…

Are Retirement Plan Fees Killing You…

Whether you lose money in your retirement plan (401K, IRA, etc.) to market losses, fraud or management fees, doesn’t really matter – it all results in loss of your precious capital. Figuring out what you’re paying in retirement plan fees and how you’re paying it in most retirement plans is about as clear as mud, but trust me, Wall Street bankers don’t do anything for free.

Recent legislation designed to improve retirement plan fee disclosures has resulted in over fifteen pages of disclosures which has actually made it more difficult than ever for the average person to determine what they are actually paying. There is still no requirement for companies to provide a simple figure or percentage to represent the overall cost to the plan participant. If you study the disclosures you can find some retirement plan fee information, but to determine that your total fees are, say 2%, is all but impossible.

I was recently at a meeting where a financial advisor for one of the largest financial planning firms in the U.S. was explaining that their overall fee structure ranged from 1.6% to 2.4% depending upon the amount of money in your portfolio and the strategies you chose. He was pitching 1.6% to 2.4% as a selling point in that these are very low compared to his competition. I put some numbers together to see for myself how it turns out in the real world. Check out the video below to see the results:

 

 

 

 

 

 

 

 

So let me get this straight. If my portfolio does well, the planners get a huge share of my returns. If my portfolio fails and I lose money or break even, the planners not only still get their fees, but I’m actually paying them out of my principle for their poor performance! By the way, none of these examples takes taxes into account. Between taxes and fees, an investor in any one of these examples would likely be losing money.

The reason management fees are so destructive to wealth building is because of the not-so-obvious fact that compounding interest works in both directions. Everyone can grasp the idea of earning compound interest over time, but few think about it in reverse. Interest you pay also compounds over time and ongoing fees as a percentage of your retirement plan balance are just interest charges by another name.

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Our Financial System and The Matrix

Our Financial System and The Matrix

“I know you’re out there. I can feel you now. I know that you’re afraid. You’re afraid of us. You’re afraid of change. I don’t know the future. I didn’t come here to tell you how this is going to end. I came here to tell how it’s going to begin. I’m going to hang up this phone and then I’m going to show these people what you don’t want them to see. I’m going to show them a world…without you. A world without rules and controls, without borders or boundaries; a world where anything is possible. Where we go from there is a choice I leave to you.”
– Neo’s phone message to the Machines. The Matrix Movie, 1999
Red pill or blue pill? Knowledge is power. Ignorance is bliss. Harsh reality versus comfortable delusion. Which is freedom, which is slavery? Does it matter? These are the powerful questions the movie is asking us to think about.
I admit it, I love the Matrix movies. I own all three dvd’s and I have a Matrix marathon at least once per year. In the movie, the machines (technology) have taken over and are raising crops of human beings that are used as batteries to provide an unlimited energy source for the machines, but most of the humans don’t know what’s going on because they are “jacked-in” to a virtual reality world where they go to work, drive around in cars, eat out, take vacations, etc. They are blissfully ignorant that their entire lives are a delusion; a delusion hiding the reality that they are slaves.
If we replace the idea of machines with banks, mega corporations, politicians and energy with money, the super sci-fi Matrix movie can suddenly hit a little too close to home.
Banks and mega corporations, in cahoots with governments world-wide, have taken over the world. They are raising crops of human beings (school systems, colleges, universities) that are used to provide an unlimited source of energy (money). Most of the human beings don’t know what’s going on because they are “jacked-in” to a virtual world (main stream media, social media, reality TV, sports, advertising, propaganda, etc.) where they go to work every day, drive around in cars, eat out, take vacations, etc. They are blissfully ignorant that their entire lives are a delusion; a delusion hiding the reality that they are slaves.
Well, that’s not a very happy thought…
Don’t despair! In the movie, there are human rebels who can jack-in to the matrix, but remain aware that it is an illusion. Because they are aware of the delusion they are able to accomplish extraordinary feats within the matrix. For the rebels, it all begins with the question, red pill or blue pill? It’s the same for us. At some point, we must choose to see the delusion for what it is, or choose to stay lost within it, blissfully ignorant.
If that was all there was to it, the status quo could go on indefinitely, but let’s not forget Agent Smith. Agent Smith is the virus in the program, the fatal flaw, that left unchecked, will bring down the machines, the matrix and destroy all the unknowing humans too. In the movie, in order to defeat Smith, and save themselves the machines must change. They must embrace and make peace with free human beings – they must find a way to work together to create a system that allows freedom to all who wish to pursue it. Time is of the essence. Smith is growing too powerful to control. The end is near. Choices must be made.
Our own version of the matrix, the financial system, is also endangered by fatal flaws, quickly becoming too powerful to control – excessive debt, money printing, market manipulation, corruption. It’s not if, but when, these “viruses” will destroy our matrix, and the lives of millions of unknowing human beings along with it. Time is of the essence. The end is near. Choices must be made.
I want to show you a world without… them. I can’t tell you how exactly it will end – no one can, but I can tell you how it begins. Where it goes from there is a choice I leave to you.
You can opt out of dealing with banks and Wall Street and work within the system to free yourself and your loved ones and prepare for the coming storm. This is all totally possible, but first you must make a choice. Will it be the red pill or the blue pill?

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