Falling Victim to Opportunity Cost
The amazing unrecognized financial victimization is dooming 95% of our society to financial dependence. Sadly, the entire victimization could be avoided. For the last 50 years the insurance industry has been telling the 100 man story. It goes like this: For every 100 people starting at 25 after working for 40 years at age 65 the overwhelming majority 95% are either Dead, Dead Broke or Financially Dependent on Family, Friends or even worse the Government. This story was responsible for selling billions of dollars in life insurance over that timeline. And while the life insurance solution was and is still a viable and important piece of becoming financially independent it is not solving the primary cause of the financial victimization.
The genesis of the problem is the amortization of debt. The average American is losing a minimum of $100k over the lifetime of their debt service. These losses are hidden and painless so we never see it until its too late. Just like placing a frog in a pot of boiling water, the frog would resist, but when you put a frog in a nice warm pot of water he gladly takes to the environment, and then its simply a matter of slowly turning up the temperature while the life is slowly ebbed from the frog and ultimately the frog is fully boiled.
Financially we are frogs, and the amortization of debt is our warm comfortable environment. Slowly all opportunity is slowly ebbed out of our future. The dollars that are taken from us in the form of ongoing interest payments which create not only the loss of money but the ultimate damage of lifelong opportunity cost. The money we lose is never in our possession to create future wealth with through the magic of compound interest and therefore we have a negative compound interest result which assures the resulting financial dependence. This cycle will continue to impact one generation at a time because the banks, financial institutions, hedge funds and all lending organizations thrive on the long term amortization of debt service payments. And we are willing participate because the financial literacy education we have received is a simple story of work to earn, spend, borrow and make your payments on time. Spend and pay on time. We have decided to gleefully take all of our future earnings to prepay today for material things. Take a 30 year mortgage for example. In the first 19 years of a 30 year mortgage you will prepay the majority of the interest, with a small fraction of the principal paid down, the last 11 years will pay off the vast majority of the principal. In the end you will have paid approx. 2.5 times the amount you borrowed. All the while people’s major concern is the interest rate at which they get the loan. Talk about a magic trick, its not the interest that robs you its the timeline you pay the interest over. When time is factored in with money that creates the magic known as compound interest and this magic can either bring you great wealth or it can rob you of any chance for the accumulation of wealth. Its a double edged sword and we have been indoctrinated and trained to use it against our best interests at all times in every financial decision we make.
My point for you here is while life insurance, annuities, retirement planning, investment vehicles are all very important financial solutions they become moot when you ignore the core principle of economic loss. The first solution is to STOP all losses and capture the money you willingly give away to the banks and financial institutions. That money is the capital you get to use to create the future wealth you need to be financially independent. If you don’t accomplish this you are never in the game, you are simply running on a treadmill or in this case a hamster wheel. Sure you save some money, then you invest some money, you set up retirement plans and yet you continue to make debt service payments which over time lose incredible sums of money that never get into your plans, its comparable to having internal bleeding, you are slowly bleeding to death and never know it until you cease to be. You took all the right steps to pursue financial independence but you never knew you were bleeding and thus unknown to you death was your only result. Stop the bleeding and then take the next steps in the strategy.
We have a financial solution that will stop the financial bleeding, open the door to a pathway for financial independence. This solution is the preventative medicine that makes financial independence achievable. You will still need to take additional steps along the pathway which will then assure you of becoming financially independent.
Watch this brief overview on this solution.
After go to www.trivesta.com/advocacybz and enjoy the testimonials, these are people just like you who have learned the key to opening the door to the pathway for financial independence. Then use the calculator to find out just how much you and your family will save and how much wealth you can create through that savings. Then you can call me with any questions or concerns.
YOUR Best Interest IS OUR ONLY Concern!