About 18 months ago, I read a book by Nelson Nash entitled "Becoming Your Own Banker". I have experienced a big paradigm change from reading it. Mr. Nash says there is only one pool of money in the world. At first I was mystified by this statement. As I thought about it in light of alot of other points he made in his book, I realized I was conditioned to believe that I needed to be putting aside money from "today's pool" into a "future pool". Now I view that as faulty thinking and now I apply a much, much better way to use money that enhances its value in the present and in the furture simultaneously. The better way is to keep all my money in the present and capitalize myself using the very same dollars I was squirreling away every month into a future pool via qualified plans, like 401(k)s. Now when I need to buy a car or fix my roof, I can bank with myself, setting myself up on monthly payments plus interest to meet my current needs. The more I do this, the more I will have in the future. I used to think "rate of return" was important. Now, for me, use of money is far more important. And I do not have to be concerned with what the government might give or take away next, nor about the volitilaty of the stock market. All I have to know is how much I can save each month and put into my own "bank". What is my own bank? I imagine some fools may scoff. But my own bank is a whole life dividend paying policy with a mutual company. I am not concerned with the face amount, but only how much I want to put in each month. It builds values fast and captures the profitability of the life insurance company with dividends paid to the policy, whether or not I have the money out using it. Corner
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