Don't Let Strangers Own Your Money!!

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Welcome to make your Wealth Work, the podcast where wealth becomes your greatest ally in achieving your dreams. Should

Joe Pantozzi: 00:00:08

you have life insurance as part of your protection savings growth model? Should your portfolio contain life insurance? I'm not sure.

I may come back to that at the end of these few minutes that we're going to have together. I know one thing.

My mentor, Nelson Nash, who taught me more about life insurance in the last 20 years than I had learned in the first 25 before I met him, said that life insurance is the only underlying italics, bold highlighted.

Life insurance is the only financial product on the planet that is guaranteed to increase in value on a guaranteed basis every single year that you own it. Period. Now, life insurance is not a substitute for any kind of an alternative investment.

Life insurance is tantamount to a bond component of your portfolio. It's a savings vehicle. It has lots and lots of side benefits, but bottom line, it's a savings vehicle.

boomer. Those people born in: 1946

The average Gen Xer born: 1965

And the average Gen Z: 1997

I'm not sure exactly how much they've spent in order to persuade people, to promote people, to encourage, to sell, to arm, twist people to deposit money into their retirement plans. And the best we have is a boomer has an account with a quarter million dollars in it.

I dare say that that boomer is not going to be happy if their retirement plan is four times that.

Because it's hard for any serious income earner, any wage earner, let alone any closely held business owner, to even have an inkling of a dream of retiring in any kind of a decent condition with a million dollars in the bank. And you're telling me they've got a quarter million dollars? What does that say? People aren't saving enough? And you can slice it any way you want.

y mentor also told me from in: 1980

In: 2008

Now, if we project that forward any way you want, whether it's 15 years from now or 20 years from now, do your own math and come up with your own numbers. They say that the figures can lie and liars can figure.

Any way you look at it, 15 to 20 years from now, it's going to take $8 to buy what $4 buys today. So where are we going with a quarter million dollars in our retirement plan?

Add that to the fact that many financial heads, the talking heads, are saying you should be saving 10%. I don't know where that number comes from. I don't think it's accurate. I don't think it's realistic.

But think about all the things that tend to drain money from your savings. Here's a few of them. Emergencies.

You know, what if something happens periodically and it's going to happen eventually, you really can't call it an emergency if you get a flat tire every five years. Don't you think you can plan for that flat tire and have money set aside?

So let's not fool ourselves into thinking, well, I drained my savings account because I had to buy four new tires for whatever it costs, $1,000 or $500 or $2,000. Opportunities.

You have an opportunity to buy into a friend's great idea, or you want to make a gift to a charity, or you want to make a gift to a friend or loved one or a family member. You want to go on vacation maybe even more than once a year. You want to save up money for Christmas.

These are all things that are going to drain your savings account. You want to make house upgrades. Here's a big one. You want to have a walkaway fund. You don't like the situation you're in.

You don't like your employer. You don't like your work, your job, your career trajectory.

You want a walkaway fund, I better have six months worth of living expenses in the bank so that I can make other choices. Well, let's not talk about the majority. Do your friends have that? You shouldn't care if your friends have it. You need to have it.

Medical expenses that may not be covered by insurance, supporting an elderly parent. I mean, these are just things that come up in life.

You can call Them emergencies, we can call them unplanned contingencies, but they're things that come up in life and you need to be prepared for them. And they're not going to be unexpected when they happen. People say that this person died prematurely. Nobody dies prematurely. Everybody dies.

But hardly anybody dies prematurely. Or we should say another way. Everybody dies prematurely. Why not get serious about your savings strategy, your savings commitment?

I'm not even talking about product. If 10 years from now you've got half a million dollars saved to. Do you really care where it is?

Do you really care what the interest rate was on the account? You can go down to your local bank and ask, what's the interest rate if I open up a savings account? Well, it's such and such. It's half a point.

It's one point. It's two points. Okay. And how long are you going to guarantee me that rate, Mr. Banker? Ms. Banker?

Well, we're going to guarantee that rate until we change it. That's right. So that rate is not guaranteed. Is that going to prevent you from saving money? It shouldn't.

So my bottom line here is you need to start slamming money into savings. It's not about giving lip service to saving.

I once met a man who was also a mentor of mine in the 80s and 90s who said, can you believe that there are people out there that can't save half their income? And you laugh. But wait a minute. The only reason why you can't save half your income is because somebody else has a claim on it.

And they only have a claim on it because you allowed it, you gave it to them.

You exchanged part of your earnings for a certain type of a lifestyle that you chose to have, and you felt that that lender, that toxic lender, could provide it for you. So you've got a balance on a credit card that's charging you 30%. But I digress. Life insurance is a small component of your financial model.

Protection, savings, growth. We could talk about all these things in minute detail and I can help you get on a different path than you're on now.

We don't have time to meet with everybody who calls in or writes in, but we do have time to meet with every single person who's serious. Hope you'll connect with us. Us. And we want to help you make your wealth work. Thanks.

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