There are two ways to buy financial services in the 21st century

There are two ways to buy financial services in the 21st century

One of my members bought life insurance from the large insurer (Mascot is a dog) before he asked me for help. Frank bought their insurance because the agent said the company is the best. She said, “It is large and will always be there to pay the benefit.” However, is it worth paying an extra $17,970 on your level term policy? There are customer-focused insurers, rated A+, the same as It, charging $384 vs. It’s $983 for the same $300,000 30-year term policy. Frank was wasting $17,970! After reading our Insider’s Guide to Life Insurance, Frank purchased the $384 policy. Investing his savings of $599 ($983-$384) in his Wealth Reserve for 30 years in a market index, Frank may have an extra $175,000 for HIS dreams not the insurers. http://www.theinsidersguides.com/lifins41.html
In the 21st century, there are two ways to buy financial services—the consumer way and the independent’s way. Financially independent people don’t let themselves be sold. They shop for value in everything. They never pay retail. They shop at Costco. They buy used luxury cars. They wait for sales on electronics. They use the Internet to research the price.
Buying vehicles is one of the largest expenses in most people’s lives. Over our lifetimes, we may spend $250,000 or more. Unfortunately, most people take the consumer way and spend 4 to 5 times what they need to for vehicles. One of our members, Denise, bought a car before I met her. Joy bought her car after she read The Insider’s Guide to Vehicle Purchase.
Consumers’ way. Denise took a loan for the full amount of the price. During the paperwork process with the F&I person (finance and insurance), she was persuaded that the gap insurance and window glass etching options were good buys. Instead of getting a lower price, Denise assumed that an extra $25 a month was no big deal. This was the deal she finally agreed to:
Total borrowing: $25,000 @ 16% for 72 months (her FICO score is 610)

Monthly payment: $542.30 Total payments: $39,045.60
Total interest: $14,045.31 Final residual value: $5,000

Denise spent almost $40,000 for an asset that has little value after 6 years. During those 6 years, she could have accumulated a Wealth Reserve of $57,352.04 on the $542.30 monthly payments. Thus, buying the vehicle on time actually cost her $40,000 plus $57,000 she could have had by investing the payments. The car cost almost $100,000.
The real cost of buying a new vehicle is FOUR times the price--Not a great deal.
Independents’ way. Joy had been buying “assets that grow by themselves” with $500 a month for some time. She had been growing her Wealth Reserve. She started her Wealth Reserve by using our FREE Guide at http://www.theinsidersguides.com/freeguide.html.
Independents use their Wealth Reserve balance for all their financial needs. Thus, their Wealth Reserve can earn 10% to 12% over time in stock and bond mutual funds. They can ‘borrow’ $25,000 from their own Reserve or ‘bank’ and pay themselves back by continuing to invest $500 for the 6 years. Joy pays monthly like Denise but to a different account. The $14,045 interest that Denise pays to another bank, Joy compounds in her own ‘bank.’ Joy accumulates about $53,000 during the six years—replacing the $25,000 she ‘borrowed’ to buy her vehicle. The vehicle is still worth only $5,000 but Joy has grown her Reserve by $28,000. Also, because Joy paid cash for a used luxury car, she probably got a lot more vehicle than Denise got for her borrowed $25,000.
As you guessed, the Independents’ way is how financially independent people stay wealthy. They paid their own “bank” and got the car and the extra $28,000 for the same $500 expense.
You can build your Wealth Reserve with savings from each Insider's Guides for: Vehicle Insurance . . save up to $6,000 over 10 years; Homeowner’s Insurance . . . $2,000 over 10 years; Life Insurance . . . $20,000 over 20 years; Lawsuit Insurance . . . $3,000 over 10 years; Health Insurance . . . $5,000 over 10 years; Disability Insurance . . . $5,000 over 10 years; Long Term Care . . . $40,000 over 20 years; Education Funding . . . $20,000 over 18 years; Retirement Spending . . . $1,000s over 30 years; Banking . . . $3,000 each year; Annuities . . . $20,000 in 20 years; Mutual Funds/Securities . . . $3,000 each year; Spending Plan: Reach every goal; Self-Funded 'Bank' . . . $250,000 in 15 years; Vehicle Purchase . . . $10,000 per vehicle; Mortgage Purchase . . . $3,000 per contract; Wealth Reserve . . . $1,000,000 in 25 years; Wealth Transfer . . . $20,000 in 10 years; Living Insurance . . . $120,000 over 20 years; Self-insurance . . . $20,000 over 20 years; Avoid buying 101 products that waste your money.
You can save $3,000 every year by buying the Independents’ way. Shop for financials just like you do groceries. Your agent, banker, broker, money manager and advisor do already. www.TheInsidersGuides.com