Medicare Supplement – Insurance Quotes

“you decide”

I touched the search button on my car radio the other day and landed on “The Dave Ramsey Show”. The caller had this story to tell:

“I am the owner of two houses that are in Florida, one is worth $250,000 and the other $350,000. I have paid for both of them.”

“I have a transmission shop that is worth $400,000 but I still owe $70,000 on it.”

“I own our current home which is worth $350,000 and 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 have been trying to float my shop expenses due to this downturn and because of this I now owe $90,000 on credit cards.”

“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 should 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:

It assumes he values money over his relationship with his wife by mocking her concern and advice.

Next it assumes that, in a very depressed market he will be able to sell his property(s).

It also assumes that if he pays of his debt he will not incur any further debt in his business.

It assumes the financial crisis is over.

It goes against common sense by assuming that getting out of debt produces financial freedom.

But let us only examine the facts:

If this gentleman can sell his house for 55% of what he has into it then he will receive max, $190,000 on the $350,000 home and less on the $250,000 home ($137,000.) This will pay off his current debt and leave him with $47,500. At the rate he has been spending money in his business this will last him roughly 3 months. Then he finds himself right back to where he started from. Only this time he has no equity to liquidate and “save himself” from being in debt. Strike one Dave!

Secondly, to be debt free is just an allusion in society as we know it today. I only know a few debt free individuals and those are the people holding signs at intersections or parking lot corners. In our society you cannot be debt free unless you own nothing. Whenever you own something you face taxes, services fees, utilities etc. So guess what? This means that to live you have to have debt. Strike two Dave. Nobody wants to be a homeless beggar.

Thirdly, Dave this caller obviously has some financial acumen and you ignored this fact. Just consider all his entrepreneurial undertakings. This hack attack was absolutely unnecessary and totally of base. You employed the attorneys old trick, if you cannot find fault with the deed attack the person behind the deed. 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 besides prolonging his bankruptcy by selling his personal property what is out there that could help this caller?

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 if Ramsey rants and raves against participating whole life insurance, do not be fooled, who cares what Ramsey says, if it is not true? The truth is that the people that pay these entertainers are the same ones that make money off of you by using your money at your loss.

Tomas McFie is 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 watched his Infinite Banking Video Then Contact him he can help you