Financial Guru or Entertainer

Article Written By: Tomas McFie

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 different houses in Florida; one of them is worth $250,000, and the other one is worth $350,000. Both of these houses are paid for."

"I also own our current home which has a value of $350,000 and I owe $120,000 on it.

"Due to the economic downturn, I have been trying to float expenses at the shop, and I have incurred $90,000"

"My wife does not want to sell any of the houses that we own in Florida because, by the time we pay listing and seller fees, we will be losing 45%."

What can we do?

After ranting and raving about the wife being unrealistic in a crisis situation, Dave advised this poor fellow to sell one of his homes in Florida and get out of debt! This advice is tragic for various reasons. Here are just a few: By mocking the wife, it assumes this fellow values money over her advice and concern.

In a very depressed market it still assumes he can 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 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, being debt free in the society of our day is an allusion. The only debt free individuals that I know are the ones holding signs at the corners of parking lots and intersections. Let us face it, in our society a person cannot be debt free unless they own nothing. Own anything and you face taxes, utilities, services fees etc. Guess what? That means to live you have debt. Strike two Dave. Nobody wants to be a street beggar.

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 what other way could help this caller besides prolonging bankruptcy by selling his property?

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 not have to work any harder or longer to make that extra money because your money will be working instead.

Even thought Ramsey rants and raves against it, participating whole life insurance is a very powerful tool available for anybody who is spending money today. Do not get fooled by the entertaining gurus who tell you differently. Who pays all of those entertainers? Bingo! It is the ones who are making money off you, by using your money, instead of you using your own money to work for you.

About the Author

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

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This Article Has Been Published on Sun, 28 Feb 2010 and Read 297 Times

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