The Incomparable Power of Zero Down Years

3 Ways To Grow Your Money Right Now, Part 3

Note: If you missed the first two editions of “3 Ways to Grow Your Money Right Now,” you can view them here: Part 1: iBonds, Part 2: Buy a Business.

In our continued effort to bring you ways to grow your money as safely as possible…

This week we turn to one of our favorite ways to build and grow wealth: Cash Flow Banking.

And with this method, you are contractually guaranteed to grow your wealth every single year.

What’s Going On:

We view Cash Flow Banking as the financial engine at the center of a properly designed Wealth Architecture, especially for business owners.

And we do so for many reasons, including:

Tax-free growth and tax free income in retirement…

Multiplying your investment dollars so every $1 can act like $2 or $3 or $4…

Built-in asset protection and estate planning…

PLUS easy liquidity that’s always available for investing in an investment opportunity, your business, your kids’ education or a business of their own, etc.

But one of the greatest benefits of Cash Flow Banking is that there are ZERO down years. Your money grows every year, guaranteed by contract.

The consistency is critical.

And that’s why we don’t mind that the guaranteed return is usually a modest 2-5% per year (especially since it’s tax-free growth). Some years it will even return 5-9%.

The key — and the magic — is in the zero down years.

To show you what we mean — let’s take a look at the value of guaranteed positive returns year after year.

Here’s the Power of “Zero Down Years”

Did you know the general stock market has only had one losing year in the last dozen-plus years?

It’s true — 2018 was the only “down year” for the Dow Jones and S&P since the Great Recession.

Of course, unless things change fast, 2022 will be the second year. But even so, that’s not a bad record.

That makes it sound like everything is rosy, but here’s the crazy thing…

Just one down year in 30 can cost you big.

To illustrate, let’s say you invest $100,000 and earn 10% per year for 30 years (that’s optimistic, we know, but this is just an example to keep the math simple).

At that rate, your investment will grow to about $1.7 million.

Now, if in just one of those years you lose 10% — even if you earn 10% the other 29 years — your investment only grows to $1.4 million.

That’s $300,000 Less Because of One Down Year!

So how often do we have down years?

Well, first it’s important to remember the line that “past performance is not a predictor of future results.” Looking to the booming 20th century might not be an accurate prediction of what the 21st century will look like.

But going back to 1950, there’s been a market correction every 1.87 years.

And since the year 2000, we’re already on the precipice of our 6th down year.

If the Dow Jones and the S&P stay in negative territory, 2022 will join the years 2000, 2001, 2002, 2008 and 2018 as down years in the 21st century. And yet…

Cash Flow Banking Has Zero Down Years Going Back to 1872

From 1872-2017 (when we last ran the numbers) we found that, thanks to zero down years, Cash Flow Banking accounts grew in value approximately…

3,759% greater than Gold …
1,280% more than Treasury Bonds …
274% more than Farmland, and …
201% higher than the Dow.

Which is critical when you consider giant returns are necessary to counteract inflation which has washed away 97% of the dollar’s value since 1913.

But what about those years like in 2021 when the market had a huge gain? For example, last year the S&P was up 28.57%. Do you miss out on those gains?

Nope, at least you don’t have to because…

Cash Flow Banking Multiplies Your Investment Dollars So You Can Participate in Bull Markets

As we mentioned at the beginning of this article, Cash Flow Banking can make every $1 act like $2 or $3 or $4. Here’s how:

While your Cash Flow Bank continues to grow at a guaranteed 2-5% per year, it also acts as collateral for borrowing against.

So your money can continue to grow, and at the same time you can borrow against the account at a similar interest rate (which makes the interest earned and paid basically a wash)…

That money can then be invested according to your Investor DNA (which is based on your unique knowledge, strengths and interests)…

Which might mean those dollars could be invested back into your business, or to BUY a business…

And these investments are where you get the outsized returns.

The key is to invest in your Investor DNA or in your business where you have control, so that you’re actually investing with your money and not just gambling in the stock market.

Considering all that…

It’s Easy to See Why Garrett Has 27 Cash Flow Banking Accounts

Yes, Garrett has twenty-seven Cash Flow Banks.

He started his first account in 1998 for just $50/month, and he’s more than doubled down since then.

It’s a safe place to put your money and automatically grow your wealth with zero down years, and we believe is an important piece of any financial plan.

If you’re interested in learning more about Cash Flow Banking, stay tuned. From time to time we offer a discount on our Cash Flow Banking program, and our next discount is in the works.

So watch your email next week to find out more.

Until then, feel free to review Part 1 and Part 2 of “3 Ways to Grow Your Money Right Now.”