This is Part 3 of the Financial Health Accelerator Series on “Money and Investing.”
In this private conference call, we cover why investing for Cash Flow is critical for long-term success.
Download the Long-Term Investments Checklist here (referenced on the call)
3 Huge Investing Mistakes and How to Avoid Them…
The call is just over 24 minutes and we cover 3 big investing mistakes and how they could be avoided by focusing on cash flow.
So if you’ve already been investing for a while, we’ll show how to break free from the limiting philosophy of investing that holds most people back, and how to unleash the power of lazy assets and untapped equity littering your portfolio.
And if you haven’t started investing yet? This is the game-changing primer you need to get your investing career started on the right track.
Why Don’t Most People Invest for Cash Flow?
Most investing taught to the Middle Class today is what we call “accumulation based” investing.
The idea is to invest a chunk of money in something that will potentially grow in value and then forget about it. The hope is that it will grow over time and eventually, at a time when you need it, your money will have grown larger than when you started.
It’s what most people think of when you mention investing.
And that’s actually not accidental. It’s a strategy that was designed by banks and financial institutions back in 1974.
That’s when the U.S. Congress was enacting the Employee Retirement Income Security Act (ERISA). They brought in banks and financial institutions to advise them on how to allow individual investors in on the game.
These companies saw an opportunity and took it. They advised for heavy restrictions on accessing your money. The guise was to “protect” the Middle Class from squandering their nest egg. But as you’ll see, it was actually a clever way for them to use your money to get rich.
Since then, millions of Americans have been raised believing these tenets are the hallmark of sound investing. In reality, terms like “Investing for the long haul,” “dollar cost averaging,” and “diversification” are marketing terms Big Finance has used against us.
It means people happily give up control of their money and then forget about. Some people even refuse to look at their retirement accounts. Sorry, that’s NOT investing. And the financial institutions (who take control of your money) are getting rich off these beliefs they “planted” into Middle Class consciousness.
An Investing Lesson from Banks…
Have you ever wondered why banks are so profitable? After all, they don’t produce a commodity or sell a product.
It’s because they are in the game of cash flow. And they win at it, big-time.
Banks take your deposits and pay a you a small fee (interest). They want to keep your money for as long as possible, too. Think about it. Why do you think they incentivize you with a higher rate if you keep your money in their possession longer (e.g. a savings account or a CD)?
It’s about cash flow. Because they turn around and use your money over and over, loaning it out, again and again. And when they loan it out, they are earning a much higher rate than they are paying you.
Plus, they require payments coming back to them on a regular basis, or there is a penalty. And if you want to cash-in your CD early? They charge a fee for that, too.
So they keep the cash constantly moving, making more money and growing with each move.
That’s cash flow. And that’s how banks get rich.
Are You Investing For Cash Flow?
On the conference call, we challenge you with 4 important questions from the Financial Health Assessment.
The answers we suggest can totally transform the way you view investing. More importantly, you’ll discover an investing philosophy that doesn’t leave you stuck on a financial dead-end (like so many Baby Boomers are facing these days).
It’s not that accumulation-based investing CAN’T ever work. It’s whether you’re willing to GAMBLE your entire family’s future on the hope and prayer it requires for everything to work perfectly.
Investing for cash flow isn’t fool-proof. But it does allow you to have much more control for the long term. Plus it lets you enjoy the fruits of your investments now, not just in retirement.
We’ll explain all the details and insights on the call. So listen to the call at the top of the page now. It’s definitely worth the 24-minutes of time.
Access to Wealth Factory’s Financial Team
Investing for cash flow is one part of the overall Financial Blueprint we help people create and execute, and it’s an important part of making your money grow.
If you want to see if working one-on-one with our Wealth Team makes sense for you, or if you just want more information about our custom financial services and how to make investing for cash flow an integrated part of your own Wealth Blueprint…
Coming up Next:
You can find the next part of the Financial Health Accelerator Series called Beyond Dave Ramsey — Live Wealthy NOW Without Jeopardizing Your Future Security & Prosperity right here.
