By ROBERT K. CUNNINGHAM, Personal Finance Coach/Consultant
RIGHT OUT OF THE GATE: This blog/website and all its content is designed and produced for information purposes only. No representation is made to guarantee the accuracy of any of the content contained on this website, nor should it be interpreted that specific investment recommendations are being made. The reader assumes any and all risk for strategies which are acted on.
Alas, it’s the year 2018. And with a new year comes several appropriate alterations… at least, where this financial blog is concerned.
Up until now, and beginning when this site was first established early last year, I had intended this to be a place where readers could reap the rewards of learning from my mistakes, soaking in various personal finance principles that can be counted on to assist you in building wealth over time.
Some of those principles are already fairly well known, and mostly accepted as fundamental in the industry. But many of the strategies and recommendations made on this site would be considered by some as unconventional… going against the grain of what has been preached by numerous financial “gurus” for about as long as I can remember.
For example, most “experts” recommend that you invest as much as you can into your employer’s 401K Plan, citing that you can do so with pre-tax dollars (tax-deferred), and that the stock market always increases in value over the long term.
But what these folks fail to explain is that any program relying on investments into the market contains significant risk, and any specific block of time can result in losses that can set back personal funding and/or retirement plans exponentially. And 401K Plans (as well as Individual Retirement Accounts and the like) are government-controlled setups with a host of inconvenient rules, such as not being able to access your own money before age 59 1/2, or five years after the account was opened (whichever happens second), unless you’re willing to pay a 10% penalty in addition to any income tax due. Another example is being forced to begin withdrawals at age 70 1/2 – even if you prefer to leave the money alone – in the form of an annual RMD, the acronym for Required Minimum Distribution. These are the law because they ensure the government receives its tax revenue in a timely fashion.
To be fair, 401Ks can have a place in our overall strategy – I recommend taking advantage IF the company offers a great incentive, such as a match of funds up to a certain percentage of your income. The most common terms are a 50% company match on up to 5% of gross income. If your company offers that, or something similar, go ahead and sign up, and authorize those appropriate with-holdings from your paycheck up to that 5% max.
But as a stand-alone solution to retirement savings, 401Ks are far surpassed by several other strategies, including the primary tool this blog is dedicated to:
Dividend-Paying Whole Life Insurance (DPWLI)
In the coming weeks, this blog will break down the process of implementing this strategy. We will first discuss basic personal finance, and otherwise getting ourselves in the best possible position to fully take advantage of DPWLI’s plethora of benefits. Then we’ll go into the specifics of how to obtain a policy (or policies), why you should, and how to best utilize it to achieve the four most important aspects of savvy money management: Safety of principal holdings; liquidity of those holdings; earning a steady rate of return that can be counted on and planned for; and legally minimizing the required amount paid toward income taxes.
I sincerely hope your time spent on this site is educational, enlightening, and ultimately beneficial. I don’t make any specific promises, but I can guarantee you that the strategies discussed on BuildWealthEarly.com are proven, and can help you actually build wealth more substantially and by an earlier juncture of your life than by attempting to do so via the more commonly promoted traditional avenues.
I will keep these Wednesday posts fairly short, and yet I will attempt to pack into each as much valuable information as I can cram into a maximum of 1,000 words. In the meantime, the Archives for all of the material published in 2017 is still available. There’s a lot of good stuff there. Please peruse the titles and find info that best pertains to your particular circumstances, although much of what I’ve covered in the last year will be reiterated in one form or another in the coming months.
For now, that’s a wrap. Until next week, may the Forbes be with you (my apologies, I was desperate to get a Star Wars reference in before it was no longer timely… What, it’s already too late? Crap.)
Seriously, thank you for reading.
For more specific information on DPWLI and related strategies, please go to www.spwealthadvisors.com, and let them know through any communication you choose to commence that you were referred to that site via www.buildwealthearly.com.
DISCLOSURE: If you decide to purchase a product(s) from spwealthadvisors.com, I will qualify for an affiliate commission.