Entertainer or Financial Guru

"you decide"

Touching the search button on my car radio the other day I came upon "The Dave Ramsey Show". There was someone that had called in, and what follows, is the story that they had to tell:

"I own two houses in Florida, one worth $350,000 the other $250,000. Both are paid for."

"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 makes $90,000 per year, after taxes, and I work at my transmission shop, but for the past six months during this economic downturn, I have not been able to bring home a salary."

"I owe $90,000 on credit cards trying to float expenses at the shop due to the downturn."

"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 is there, that we can do?"

Dave begins by ranting and raving about this guys wife, that she is being totally unrealistic in this crisis position, Then Dave advised the poor man to sell one of the houses he owns in Florida and get out of debt! This is tragic advice for multiple reasons. The following are a few.

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 assumes that by simply paying off his debt he will not continue to incur more debt in his business.

It assumes the financial crisis is over.

Furthermore, it goes against common sense by assuming that getting out of debt produces financial freedom.

But let us only concern ourselves with the facts:

If it were possible for this fellow to sell his house for 55% of what he has into it then he will be the receiver of $190,000 from the home that was worth $350,000, and less than that on the home that was worth $250,000 ($137,000.) This money will be enough to pay off his current debt and leave him with $47,500. If he has to continue spending money at the rate which he has in his business, this extra money will only last him about 3 months. Then he would find himself right back where he was, only this time he would be worse off, because he would have no equity to liquidate so that he could "bail himself out." Strike one Dave!

Secondly, it is only an allusion to be debt free in the society of today. The only debt free people that I have seen are the people that are holding signs in parking lots and on the street corners. We really should just face the fact that nobody can be debt free unless they own absolutely nothing. If you own anything, than you face taxes, service fees, utilities etc. Guess What? This means that you have to live in debt. Strike two Dave. No one wants to be a homeless hobo.

Now in the third place Dave, you have completely ignored the fact that this man that called in has had some sort of financial plan. When you look at his entrepreneurial endeavors this becomes obvious. Your hack attack at his wife was self degrading and certainly unacceptable. The attorney trick was employed by you. If you cannot find fault with the deed attack the person behind the deed. This makes 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?

Well, let us start with a true but little known fact. Real estate equity has no rate of return associated with it! The wealthy have realized this for centuries and acted accordingly. And that is why the Infinite Banking Concept can become increasingly beneficial to you. By Becoming Your Own Banker you can keep your money in a very liquid and secure place, still use the asset(s) which your money purchased (or purchases) but not be penalized for using your money which made the purchase in the first place. 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 instead.

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 viewed his Infinite Banking Video Then Contact him he can help you