9 780988 387836

51695>ISBN 978-0-9883878-3-6

$16.95

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WhoseFuture

AreYouFinancing?

WhattheGovernmentandWallStreet

Don’tWantYouToKnow

Ifwhatyouthoughttobetrueturnedoutnottobe,

whenwouldyouwanttoknowaboutit?

DavidLukas

InfiniteFinancialServices,Inc.

DLShowOnline.comInfiniteFinancialServices.com

501.218‐8880

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Thisbookisforeducationalpurposeswiththesoleintenttoeducatethereaderonitssubjectmatter.Bywritingthisbook,theauthorisnotgivinglegal,taxorinvestmentadvice.Theauthordoesnothaveanyknowledgeofthereader’sspecificfinancialsituation;thereforereadersshouldconsultaprofessionalbeforeactingonanyoftheinformationcontainedinthisbook.Becauseeachindividual’ssituationisdifferent,specificadviceshouldbetailoredtotheparticularcircumstances.Forthisreason,thereaderisadvisedtoconsultwithhisorherownadvisorregardingthatindividual’sspecificsituation.Theauthorhastakenreasonableprecautionsinthewritingofthisbookandbelievesthefactspresentedinthebookareaccurateasofthedateitwaswritten.However,theauthorspecificallydisclaimsanyliabilityresultingfromtheuseorapplicationoftheinformationinthisbook.Theinformationinthisbookisnotintendedtoserveaslegaladvicerelatedtoindividualsituations.Ifyouneedlegaladviceorotherprofessionalassistance,youshouldseektheservicesofacompetentprofessional.

Toobtainmorecopiesofthisbookpleasevisitwww.InfiniteFinancialServices.com.

ISBN#978-0-9883878-3-6

©Copyright2013byDavidLukasandFamilyMoneyGroup,LLC.Forpermissiontousematerialinthisbook,pleaseemail:David@InfiniteFinancialServices.comAllRightsReserved

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What others are saying about this book

“Thereisanoverwhelmingneedforsoundfinancialadviceintoday’sfinancialeconomy.Davidhasbrilliantlyexplainedwhythetraditionalbankingmethodshavefailedtimeandtimeagainandwhatyoucandotocreateyourownwealth.WHOSEFUTUREAREYOUFINANCINGwilldramaticallychangeyourviewofwhatyouthoughttobetrueforsolong. Unfortunately,commonknowledgeofbankingandfinanceisjustthetipoftheiceberg.It’sthepartunderthesurfaceofthewaterthatcausesthemostdamage.Thisbookexposestheicebergunderthesurfacewaitingtosinkyourfinancialretirementship.”

SethWilson,D.C. ChiropracticPhysician ArkansasCenterforPhysicalMedicineandRehabilitation,NorthLittleRock,AR

“AmschelRothschildsaid,“Givemecontrolofanation’smoney,andIcarenotwhomakesitslaws.”Weliveinacountrythatusesariggedmonetarysystem,andthereisnowayto“win”whenweplaybytheirrules.David’sbookgivesthoseofusonMainStreetapowerfulandlife‐changingalternativetoWallStreet’sfinancialplan.David’sconciseyethighlyinformativedescriptionofthePersonalMonetarySystemisaMUSTREAD!!”

ReaganBaber,MD ChandlerAdvisors,LLC‐‐DirectorofEconomics

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“Davidhasdoneamasterfuljobofexposingfinancialconceptsanyonecanimplementintotheirfinancialstrategies.Theprinciplesareeasytounderstandandprovideagreatpathforwealthcreation.Thisbookisa“musthave”foranyonewhowantstoimprovetheirfinancialposition.”

DeronK.Hamilton,CPA Partner‐Denman,Hamilton,&AssociatesCPAPLLC

“David'sresearchandinsightaboutBanking,Finance,WallStreetandtheinsuranceindustryisamustforthecriticalthinkerandinvestor.ReadingDavid’sbookwillopenyoureyesandhelpyoutakecontrolofyourfinancesbyresurrectingthetruth.Don'tbesurprisedifyoutuneoutallthatprimetimefinancialnoiseandcancelthatmoneypublication.David'sbookisamustread!”

JohnM.LittleIVIncomePlanningSpecialist JMLFinancial

“Asamortgageexpert,Ispendthemajorityofmytimeeducatingclientsontheproperwaytomanagetheirmortgage.Davidhasdoneamasterfuljobofchallengingconventionalwisdomwhenitcomestothesubjectofmortgages.He’soneofafewfinancialexpertsI'vebeenexposedtowhoactuallygetsit.AfterreadingWHOSEFUTUREAREYOUFINANCING,youwillrealizethatmuchofwhatyouhavebeentaughtaboutmortgagessimplyisn'ttrue.Youwillneverlookatyourmortgagethesamewayagain.”

LeeWelfelMortgageOriginatorAuthorofTheMortgageBook

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“Thisbookwillchallengeyourbeliefsystemaboutmoneyandwealthcreation.Theseideasandstrategiesareuncommonandarenottaughtthroughtraditionaleducation.DaviddoesanexcellentjobofpresentingtheFACTSandsharingtheTRUTHabouthowmoneyworks.Preparetobeenlightenedifyouareseriousaboutyourfinancialfuture.”

MattHaas,MBA BusinessOwnerandIFSClient

"Thisbookwillexposethehighly‘abstractbydesign’methodsandfinancialproductstheGovernmentandWallStreetimplementtoseparateyoufromyourhardearnedmoney.David'sbookwillshowyousimplewaystobeginsecurelyfinancingyourownfutureandlimitthepersonalwealthyoutransferawayfromfeesandtaxes."

MichaelMassuccoPersonalInvestorandIFSClient

“DavidLukasispassionateabouthisworkandtheserviceheprovideshisclients.HisknowledgeandunderstandingofmortgageandfinancialproductsputsDavidinapositiontoanalyzesituationsfroma"bigpicture"perspective.HesharesvaluableinsightandcriticalinformationwithreadersasheprovidesSimpleStrategiestomaximizeyourfinancesandyourfuture.Packedwith"harshrealities"thateveryonedeservestoknow,WHOSEFUTUREAREYOUFINANCINGisamustreadforeveryone.”

StevenBlackwood,CDPE,CREE,RDCProCertifiedDistressedPropertyExpertArkansasMasterBrokerNRBA

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“Asatalkshowhostwhohasinterviewedhundredsofauthorsovermy30+yearradiocareer,Iunderstandhowimportantitistogivefactsinaconciseandunderstandingway.OthershavewrittenmultiplebooksinanattempttoexposethefinancialtruthsthatDavidhassuccessfullyoutlinedinfewerthan150pages.Thislittlebookinyourhandsisveryreadable.SaveyourtimeandmoneyandreadDavid'sbook!”

DaveElswickHostofTheDaveElswickShowKARN,LittleRock,AR

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Acknowledgements

ThankyoutoLeah,mybeautifulwifeof14years,forenduringmybusinessendeavorssincetheearly90’s.Yourpatienceandconstantsupportisappreciated!Intruth,Ihavetheeasyjob.Iamgratefulfortheendlesshoursyouinvestinourtwochildren,BenjaminandAudrey,andsoontobethirdchild,Zach.Raisingkidsintoday’sworldisnosmallundertaking!

IamgratefultobothofmyparentswhonevergaveuponmewhileIwasinschool.Thankyou,ThankYou,ThankYou!

IammostgratefulfortheunconditionalloveandgracegiventomebyGodthroughthesacrificeofHisSon.Despitemymanyshortcomings,Godcontinuestoloveandpursueme.

IamthankfulforeachandeverydaythatGodhasgivenmehereonplanetEarth.Istrivetoliveintodayastomorrowmaynotcome.Asahumanbeing,it’seasytogetcaughtupinthemindsetofthinking,“WhenIgetthisnewjob,thenIwillbehappy.Whenthishappens,thenIwillbecontent.”Iencourageyoutobethankfulandliveintoday.Lifeistoday!Tomorrowmaynevercome.Asthedaysgoby,Iambeginningtorealizejusthowshortlifeis.EvenifIlivetobe100,lifeonearthislikeavapor;youseeit,andthenit'sgone.IstrivetomaintainthisperspectiveandlivemylifewiththisinmindwhilebeingthankfulforeverybreaththatGodhasgivenme.

ThankyoutoJohnLittlewhohasbeenagreatfriendandbusinesspartner.Iappreciatethetimethatwehavespentlearningfromoneanother.

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ThankyoutoallofmyclientsandfriendswhomIhavehadtheopportunitytoserve.Withoutyou,Icouldn’tdowhatIdo!

Lastly,Iwanttoacknowledgemydeceasedbusinesspartnerandfriendwhotaughtmesomuch.OnOctober23rd,2012,ValWheelerdiedofamassiveheartattack.Valwasjust56.Icansaythathedieddoingwhatheloveddoing(literally,hewasgivingapresentationtoagroupofdoctorsatthetimeofhisdeath).Valwasagenerousmanwhowillinglygaveofhistimeandresources.Hewillbemissed.

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Table of Contents FOREWORD 3CHALLENGINGPARADIGMS 6JIMMY’SDILEMMA 7OUTLIVINGYOURINCOME 10WHYCOMPOUNDINTERESTDOESN’TWORK 133TYPESOFMONEY 18THEBANKINGEQUATION 20THEBIRTHOFFRACTIONALRESERVEBANKING 25DEBT,DEBT,DEBT 26THEBIGGESTHIDDENTAXKNOWNTOMAN 28THEBUCKETBRIGADE 32YOUFINANCEEVERYTHINGYOUBUY 35THREETYPESOFPEOPLE 37STRATEGIESUSEDBYTHEWEALTHIEST1% 40I’MFROMTHEGOVERNMENTANDI’MHERETOHELPWITHYOUR401(K) 443RETIREMENTGOALS 51BEINGACRASHTESTDUMMY 53WHATILEARNEDFROMSATURDAYMORNINGTV 54DRIVINGONANEMPTYTANK 55THEWALLSTREETCASINO 57SAFEDEPOSITBOXES 58MAILBOXMONEY 65CREATINGYOURPERSONALMONETARYSYSTEM 71SMALLBUSINESS,THEBACKBONEOFTHEAMERICANECONOMY 75USINGU.P.S.TOBUILDYOURWEALTH 81THEVALUEOFCASH 83LIVINGINTHEREALWORLD! 88MORTGAGEPLANNING 92TIMETOLETGOOFTHEPAST… 94“WHATISYOURRATE?” 95PRUDENTHOMEEQUITYMANAGEMENT 98EQUITY’SRATEOFRETURN 102AREYOUSTORINGMONEYINYOURMATTRESS? 103BUILDINGATHIRDHOUSE 106

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FINANCINGYOURNEXTVEHICLE 107PAYINGFORCOLLEGE 112YOURGUARANTEEDRETIREMENTSYSTEM 114DAVID’SDICTIONARYOFFINANCIALTERMS 117RECOMMENDEDBOOKSANDRESOURCES 121ABOUTDAVID 122

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Foreword

Afewyearsagoagoodfriendapproachedmeproclaimingthathehadfoundsomemodernday'secretoffinance.'ThisgentlemanandIhadworkedtogetheratoneofthelargestbroker‐dealersinthecountryjustafewyearsearlier,beforehissuddenexitwhichleftusallscratchingourheads.WhoknewthatIwouldmakethatsamesuddenexitnearlyayearlater.AtthetimeIwaswellonmywaytobecomingoneofthetopfinancialadvisors/moneymanagersinthesouthernU.S.BeingthatIthoughtIknewbetter,Ibrushedhimoff.Buthewasrelentless.FinallyIgaveinandreadabookaboutwhatDavidcallsyourPersonalMonetarySystem.Thissystemwassointeresting,soexcitingthatIcouldn'tstopstudyingandresearchingit.Finally,afterayearofutterresearch,tryingtofindalltheloopholesandpitfallsofthislittle‐knownstrategy,IcametotheconclusionthatthiswasthemosteffectivefinancialmanagementandgrowthsystemAmericanshaveaccesstotoday—andthatthey'vehadaccesstoforthelast200yearsforthatmatter.WithinsixtydaysofreachingthatconclusionIleftthatbroker‐dealerandpublishedtheresearchI’dspendnearlytwelvemonthsbuilding.OverthecomingmonthsIspentmytimesearchingforpeoplewhohadheardof,orwerewillingtolearnabout,thisPersonalMonetarySystem.Thensomethingremarkablehappened.OnabeautifulsummerSaturday,oneofthosedaysthatyouknowGodcreatedtoletusknowHe’sthere,Iwasinthecarmovingthroughradiostationstryingtofindsomethingworthlisteningto.ThenI

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hearthisgentlemanonsometalkradiostationtalkingabouttheverytopicsI’dbeenresearching!ThatgentlemanwasDavidLukas,andhewasdebunkingtheconventionalwisdomthatfifteen‐yearmortgagessavedyoumoneycomparedtothirty‐yearmortgages.Iwashooked!SoIdidwhatanysanepersonwoulddo–IGoogledhisname.WhatIfoundonlyhookedmemore.ArchivesofradioshowsandwritingsdetailingthecreationoftheFederalReserve,whymutualfundshadrobbedsomanyAmericansblind,andwhymostbanksputmoremoneyininsurancecontractsthantheydoinrealestateorbonds.NearlyayearafterthishappenedIbecameawarethataninsurancecompanyexecutivewhomIknewalsoknewDavid.Andtherestishistory,astheysay.DavidandImetandIrealizedthathehadmoretoofferthanheprobablyknew.Forthosethathaveacquiredthisbook,you’reinforarealblessing.Mr.Lukashasoutlinedforusexactlywhatthislittle‐knownfinancialsystemisand,almostmoreimportantly,whymostofyouhaveneverheardofit.Therearegreatpowers,powersthataremanytimesbehindthescenes,thatwon’tbenefitfromoureducationonthetopicsthatDavidwritesabout.Whatyou’reabouttogainreallycannotbedescribedbriefly.Itwilltakeyouonajourney,challengeyourpreexistingbeliefs,andleadyoutoalandofprosperitythatyoumaynothaveknownexisted.GeorgeOrwelloncesaid,“Inatimeofdeceit,tellingthetruthisarevolutionaryact.”Thetruththatisinthisbookisn’ttobetakenlightly—anditisrevolutionary.Themoreyouread,themoreyoustudy,themoreyouanalyze,the

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moreyouwillcometounderstandthatwhatthemajorityaretaughttodofinanciallyisinconceivablyinaccurate.You’llrealizethatmanypeoplegetrichintheprocess—butusuallyyouaren’toneofthem.Byreadingthisbookyou’llgettheinsidescooponhowthewealthyreallymanagetheirmoney.Anditwillleadyoutoplacesyouneverthoughtyoucouldgo.Lettheprosperitybegin!B.ChaseChandlerFounderofChandlerAdvisorsAuthorofTheWealthyFamily

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Challenging Paradigms

WhenChristopherColumbussetsailtoexplorethenewworld,everybodythoughthewascrazy.Theysaid,“You'regoingtosailrightofftheendoftheearth.”“He’samadman.”“He’llnevermakeitback.”Whatevertheymayhavesaidorthought,weknownowthatwhatthemajorityofpeoplebelievedatthattimewasactuallynottrue.Theideathattheearthwasflatwassoingrainedintheirculturethattheycouldn’tfathomanythingdifferent,letaloneanentirelynewparadigm.

WhenGalileowaslookingthroughhistelescope,hecametotheconclusionthatitwasnotthesunthatrotatedaroundtheearth,butthattheearthrotatedaroundthesun.Thistotallyrocked“common”logicandbelief.Atthattime,thisbeliefwassoingrainedinthecultureandsocietythattheCatholicChurchsaidhisclaimwasagainstallthingsHolyandevenblasphemoustoScriptureitself.Itwasheresy.Becauseoftheselong‐heldbeliefs,theyliterallyimprisonedGalileo.Weknowtodaythatindeedtheearthdoesrotatearoundthesun.Weknowthistobetrue,buteveryoneatthattimethoughtotherwisebecausethat’swhattheyhadbeentaughttobelieveandthoughttobetrue.

So,thepointofthisbookistochallengeyourassumptions.Iwanttohelpyouthinkdifferentlyaboutyourfinances.Whatyou’velearnedfromschools,magazines,mediaandWallStreetitselfmaynotbetrue,andinrealityisnottrue.

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Jimmy’s Dilemma

Ihaveaclient(we’llcallhimJimmy)whois72yearsold.He’sretiringthisyearandhehasaccumulatedapproximately$1.3millioninsavings.

WhenIfirstmetwithJimmyandweanalyzedhiscurrentfinancialposition,Iquicklyrealizedhehadallofthe$1.3milliondollarsinequities(thestockmarket).Thatmeant100%ofhislifesavingswasatrisk,andhewantedtoretirewithsecurityandpeaceofmind.Ifthemarketwentthroughanother“correction”ofsay25%,Jimmycouldlosemorethan$300,000ofhisretirementsavings.Hecouldn’taffordthat!Hedoesn’thavetimetoregainwhathewouldlose.AsmygoodfriendJohnLittlesays,

“Therearenodo‐overswhenyouarethisclosetoretirement.”

WallStreetusesterminologylike“securities”todescribewhatyouarebuyingbutIwouldsay,basedontheunpredictablevolatilityofthemarket,thereisnothingsecureaboutsecurities.

WallStreethasitsownterminology.Whenthemarkethasa“correction”,likein‘08whentheS&P500dropped37%affectingmanyretirementfundaccounts,theysaythisis“normal”andthateverythingwillbouncebackintime–“italwayshas.”That’snottoocomfortingforJimmy.

Jimmyhastoldmethathecan’taffordamarket“correction.”Whydotheycallitthat?Thereisnothing“correct”aboutacorrection!He’sretiringthisyearandsaidtomewhenwesat

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downtodiscusshisfuture,“I’vealwaysthoughtthiswastheonlyway.”Jimmy,likemanyothersImeet,hasbeendupedintobelievingthere’sonlyonepathtosavingforretirement.WallStreetlikestocallit“investing.”Iprefertheterm“gambling.”

WhatJimmyhasnowdiscoveredisthatwhathe’sbeensoldalltheseyears—thathehadtoputhismoneyatrisk—isnottrue.This“takeariskandwaititout”investmentstrategyhasallbeenunnecessary.Hecouldhaveachievedthesameresultswhileknowingexactlyhowmuchmoneyhewouldhaveduringretirement(isn’tthatwhatweallreallywanttoknow?),thathecannotoutlivehisincome(whatIcall“incomeforlife”),andthatitwouldallbeguaranteedtobetherewhenheneededit(whatIcallRetirementWithoutRisk).

ItstillsurprisesmewhenImeetpeoplewhohavelostuntoldamountsofmoneyinthemarket,yettheycontinueto“feedthebeast”byputtingmoneyintothemarketmonthaftermonth.Manyofthemaresimplyhopingandprayingtheywillgetbackwhatthey’veputin.

Anotherstorythathitsclosetohomecomesfromafamilymemberthroughmarriagewhotoldmeofherownverypainfulexperience.Sheinheritedapproximately$1millionworthofstockheldinonecompany.Atthetimeshewasadvisedtokeepit“invested.”ThenameofthiscompanywasWorldCom.NeedIsaymore?Withoutgettingintoallofthedetails,thecompanyemergedfrombankruptcyduring2004andtheoutcomewasthatthevalueofthestocksheinheritedbecametotallyworthless.$1millionlostpracticallyovernight.Shedoesn’tliketotalkaboutthisstorytoomuch.Itwasaverypainfullessonindeed.

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Remember:Itisequallyimportanttogetareturnofyourmoney,asitistogetareturnonyourmoney.

Aninvestmentoperationisone,whichuponthoroughanalysis,promisessafetyofprincipalandanadequatereturn.Operationsnotmeetingtheserequirementsarespeculative.

–BenjaminGraham,TheIntelligentInvestor

Askyourselfthisquestion:

Whensomeoneadvisesyoutoputyourmoneyat risk(byspeculatingintheMarket),whosemoneyis atrisk?Yours…ortheirs?

Beforeweproceed,IwouldliketosaythatIamnotinherentlyagainsthavingasmallportionofyourmoneyatrisk.Anymoneyyoudecidetoputatrisk,ultimately,shouldbemoneyyouarewillingtolose—moneyyouareNOTcountingonforretirement!Therealityisthatyoucanachieveoutstandingresultswithouttakingsubstantialrisk.ThesadtruthisthatmostpeoplewhoaresavingforretirementhavethemajorityoftheirmoneyatriskwithNOguarantees.Thegoodnewsisthereisanalternative.

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Outliving Your Income

Jimmycommentedtomerecently,“Idon’tnecessarilyhavetoworryaboutoutlivingmyincomebecausemostofmyrelativeshaveonlylivedintotheir70s.I’m72….”

Whathe’sfailingtorealizeisthathecannotplanhisfuturebasedonthelifespanofothers.

Mygrandmotherisabouttoturn98yearsoldandshestilllivesathomebyherself.Hermindisverysharp,thoughshedoeshavesomeonecomeinandhelpherwithsometasks.Grandmahasoutlivedhertwoyoungersistersandherolderbrother.Weallknowthatpeoplearelivinglongerthaneverbefore,andmygrandmaisaperfectexample.

Similarly,mygrandfather(mymom’sdad)turned92recentlyandhealsolivesathome.I’mwitnessingmyparentstakecare

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oftheirparentslikesomanyaredoingtoday.Icantellyoufirsthandthatthetimeandenergytheyareinvestinginthecareofmygrandparentsisveryreal.Someonenowhastostaywithmygrandfathernightandday.Thisisarealityformanyofus,andwillbecomemore“normal”inthefuture.It’sriskytoassume,“Well,Ijustwon’tlivethatlongsoIdon’tneedtoworryabouthowlongmyincomewilllast.”Weneedtobewiseinourplanningsowewon’tbeaburdentoourchildrenandwe’llbeabletoenjoylifeandretirewithoutriskorworry.

SomethingelseaboutgrandmathatIthinkisalittlefunnyisthatshe’sabitofahypochondriac.Overtheyearsgrandmawouldoftensay,“Oh,IjustknowIhavecancer.Iknowit.Thisisit.”Andthenthedoctorwouldgiveheracleanbillofhealth.Ialwaysjokethatwhenshe’s102she’llgotothedoctorandthey'lltellher,“Edna,we’resorrytotellyouthisbut...youhavecancer.”Andshe’llreply,“Iknewitallalong!”Well,grandma,youhavetogosometime.Ifyou’vemadeitto102,everydayisabonus!

Thepointofthesestoriesisthatyoureallydon’tknowhowlongyouwilllive.That’swhyit’simperativetoknowthatyourretirementincomeisgoingtobetherewhenyouneedit,foraslongasyouneedit,withoutinterruption,“correction,”orrisk.ThatiswhyItakeamoreconservativeapproachwithanincome‐for‐lifestrategy,whichguaranteesyouwon’toutliveyourmoney.ThisistheonlymethodIknowofthatgivesyoucompletecontrolandpeaceofmindsoyoucanenjoylifenowandRetireWithoutRisk.

Byfollowingthisprovensystem(whichwe’llgettoinafewpages),you’llknowexactlyhowmuchmoneyyou’llhavecomingtoyoueverymonthfortherestofyourlife.It’swhatI

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liketocallyourownPersonalPrivatePension–or“MailboxMoney”forshort.

Ifyou’relikemostofmyclients,allofyourlifeyou’vebeentaughttobelievethatsavingforyourretirementthroughthestockmarketistheonlyoption.You’veprobablybeentoldnottoworryaboutmarketfluctuations,tostaythecourse,andthatovertime,you’llrecoverwhateveryou’velost.

MainStreethasbeencontinuallyseducedbytheoverlyoptimisticgamblingnatureofWallStreet.We’vebeensoldonthe“fact”thattheonlywaytoaccumulatemoneyisbyspeculating.IthinkitwasSchoolhouseRock®thattaughtusto:“Buylow,sellhigh,takeapieceofthepie–that’stheWallStreetway.”

Sofromourearliestyearsasachild,we’vebeenconditionedintobelievingthat“theStreet”wasthebestwaytosaveforretirement.Theproblemisthatsimplyisn’ttrue.Thereisanotherway.

Thehopethatthoselivingon“MainStreet”haveisthatwhenwehitJimmy’sage,wewillhaveenoughmoneysavedtohaveadecentincomefortherestofourlife.That’sreallywhatwewant.Wedon’tknowexactlyhowmuchwe’regoingtohave,wejusthopeournesteggisbigenoughtosustainusuntilwedie.

Isyourgoalforretirement…

a. Tobeultra‐wealthy?Or,b. Tohaveincomeforlifeandmaintainyourstandardof

living?

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ThehopeofMainStreetisthatWallStreethasthesolution.Whatyou’reabouttofindoutisthat’snotnecessarilythecase.

Why Compound Interest Doesn’t Work

AlbertEinsteinsaidthatcompoundinterestisthe8thwonderoftheworld.Itworksbestuninterruptedandovertime.Whenmoneyisputasideandleftuntouchedtocollectinterestyearafteryear,theresultisnearlymiraculous.

Thereasoncompoundinginterestdoesn’tworkforsomanyAmericansistheyfailtosaveanysubstantialamountofmoneyduringtheirlifetimebecausetheyhavenomethodtogainuseandcontroloftheirmoneyduringthecompoundingperiod.Ifyouspendthemoneyyouaresupposedtobesaving,youinterruptthecompoundingprocessand“killthemiracle”thatmakescompoundinterestwork.

Andwhat’sthesecrettothismiracle?

YouNEVERTouchthePrincipal.

Thisallowstheinteresttocompoundcontinually(uponitselfandtheprincipal)sothatyouearnincreasingamountsofgrowthastheyearsgoby.

ForExample:Ifyouputjust$100amonthawayfor40years,compoundingat7%,your$48,000hasturnedinto$265,643!Buttheproblemis…lifehappens.Thereareallkindsofexpenses

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thatcomeupthroughoutyourlife—manyyoudon’tanticipate,suchas:

● Youneedanewairconditioningunit.● Youneedanewroof.● Youloseyourjob.● Yourkidsneedbraces.● Yourhousefloods.

Thetruthisthatmostpeopledon’thaveaplan(noramethod)togainaccesstotheirmoneywhilestillallowingittocompounduninterrupted.Thatiswhymostpeoplefailtoaccumulatesubstantialsavingsduringtheirlife.

Remember:The“miracle”ofcompoundinterestworksbestuninterruptedandovertime.Ifyou“kill”themiracle,itdoesn’twork!

Ifyouwereconsistentlysaving$5,000peryearandyouspentwhatyouhadsavedinthe5thyear,itwouldrepresentalong‐termlossof$229,000overyourlifetime!(SeeFigure1.1)

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That’saHUGEloss.Butthisispreciselywhatmostpeopledo—theyremovetheirsavingstomakeapurchase,thus“killingthemiracle”ofcompoundinterest.Then,whentheyreachretirement,theydon’thavenearlyenoughsavedandareputtingthemselvesatgreatriskofrunningoutofmoney.

Theexampleaboveassumesyouonlymakeonecashpurchaseinyourlifetime.Whataboutthepersonwhopayscashforeveryautomobilepurchase?Afterall,isn’t“payingcash”whatwearetaughtisthewisefinancialchoice?Ifahouseholdacquiresjustonevehicleevery6yearsandpaidcashforatotal7carsovera

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40‐yeartimeframe,thiswouldrepresentalong‐termlossof$797,053!(SeeFigure1.2)

Thisisaconservativeestimateasweassumethateverycarcostsonlywhatwasaccumulatedbeforethesavingsweredepleted($34,877)everysixyearstomaketheautopurchase.Mostlikelythecostoftransportationwouldincreaseover40years.

Abetterstrategyistoallowyourmoneytocompoundcontinuallyandhavecompleteaccesstouseitforpurchases,

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whileneveractuallytouchingtheprincipal.Inthiswayyourmoneycontinuestogrow,yougettobuythethingsyouwantandneed,andyou’llbeabletoRetireWithoutRiskknowingexactlyhowmuchincomeyouwillhavefortherestofyourlife.

Thisisn’ta“new”ideaormethodbyanymeans.Infact,it’sbeenaroundforover150yearsandistheprimarywaythewealthyfamiliesinourcountrypasstheirwealthfromgenerationtogeneration.

WallStreetdoesn’twantyoutoknowaboutthismethodbecausetheywantyoutospeculateinthestockmarket.Andthegovernmentdoesn’twantyoutounderstandthisbecausetheywanttotaxyourinvestmentswhenyoubegintakingthemoutofthestockmarket.

ThetimehascomeforthoseonMainStreettowakeupandconsiderabettermethodforsavingmoneythatcreatesguaranteedincomeforlifesoyoucanRetireWithoutRisk.Butfirstyouneedtounderstandthedifferenttypesofmoneyandhowtheyaffectyourlifestylenowandinthefuture.

********END OF BOOK SAMPE******** To Purchase Go to: DLShowOnline.com