Commenting on the Next Big Threat

...Student Loan Debt...

Bloomberg Business Week (BBW), January 20-26, 2014, page 10, nearly headliner article provides a painful assessment of what they (BBW) perceive as the next big threat to the U.S. economy - student loan debt.  The most intriguing part of the article highlights the numerous quotes and references to The Fed and in particular to the New York Fed and its president, William Dudley.  I say it's intriguing, because nearly the entire article is aimed at why the NY Fed and Fed in general, think that the rise in school loan default debt (90 day delinquencies up 11.8% in 2013 3rd quarter report) is so bad, but also how they are addressing "the fix."

If the BBW assessment is true that student loan default is the next home mortgage crisis, and all indications seem to point to this truth, then wouldn't it be prudent to talk just momentarily about preventative solutions for incurring such debt AND solutions for cleaning up such personal debt in loans by speaking to personal action rather than Fed judgments? 

First, to be fair to the article the chief economist of Wells Fargo, John Silvia, did assess that should loans be taken on by families and individuals it would be most helpful that people study what is most in line with their interests and maximum earning potential.  Well, how about that?  Great insight.  So, let's move on to a deeper solution.

Perhaps, parents and especially grandparents could begin a way of paying for school in the early stages of their child/grand child's life.  How? Via the Infinite Banking Concept and how Nelson Nash suggests in his book on page 83 of the Fifth Edition.  OR heavy school loans can be handled on the back end by, again, placing funds earned in an IBC plan thus paying off incurred debt.  This could be explored further by contacting me for a copy of Nelson's book.  In either case I want to make this clear point - leaving solutions in the hands of the Fed or anyone else, but you, and hoping for a magic bullet fix is not really how this great nation was founded.  It was founded not on government dependency, but on the ethic that families and individuals take on their own responsibility for their own actions.  Infinite Banking allows you and your family to do just that, and do it with enormous effectiveness.

Financing College

From the Driver's Seat...

In less than one year my wife and I will begin to finance our daughter's college education largely (if not in total) through the wonderful resource of infinite banking. Back in 2008 I, like you, were awakened to some pretty harsh financial realities in the public marketplace, but also in my own personal financial situation.  I knew that in five to six years I NEEDED a better option to be able to finance my child's future education than "a wing and a prayer" and FannieMae.  Ugghhh, that was such a hard thought to ponder.

At the time I also had many other things spinning like high unsecured debt, pitiful pension, and minimal death benefits in case I passed on.  In short, my family was in high debt, little retirement funding, and unprotected in case of my demise!  NOT good. In addition, I had no way to pay for college.  Up a creek without a paddle.

I won't address how Infinite Banking helps with the first three issues,  but I will say today that 2008 was the (sounds odd) perfect time to begin a dividend paying whole life insurance policy that was set up for us to quickly begin utilizing for the banking benefits.  November 2013 marks our 5th year as Infinite Banking practitioners and I'm super excited to say we're debt free (except mortgage), I have an ever increasing passive income pool for "retirement" (that I can tap tax free), I have an ever increasing death benefit to leave a super awesome legacy, and I have placed my money in a system that is 100% liquid with no taxation on growth and can use it anytime I need it for any reason I desire - INCLUDING financing my kids college.

I'm not an official financial adviser, I'm a guy who lives and teaches Infinite Banking, but I would say that being in the financial driver's seat right now in regards to financing college in the years ahead feels so much better than keeping my money stashed away in some government qualified plan hoping it will grow and for the most part unable to access its use without penalties. So, what to do?  Well, if you have a seventh or eighth grader and you're thinking college and how to finance - you might consider Infinite Banking.  It's meant more to me than what I thought I knew. Call me if you'd like to explore how you can set up your own Infinite Banking system.

About Living Paycheck to Paycheck

According to CNN.com 76% of Americans live from paycheck to paycheck.  Living in one of the most affluent counties in America (Johnson, state of Kansas), it would be easy for me to dismiss this as alarmism, but even in this very county, and in the surrounding KC metro counties, it is easy for me to imagine that this CNN.com article is probably not too far off the trail.

Now, that being said, I am an optimist by nature and I do not re-post this article to point out the negative nature of how this article feels for so many who do live pay check to pay check, we get enough of that in this age.  I do re-post, because no matter what you or I think of the news service reporting (good or bad, legit or not) I think the vibe of the article is certainly valid and perhaps even fairly close in percentage of people in this situation.

My family was in this state in 2008 and mounting unsecured debt was the norm.  I was sooooo sick of living paycheck to paycheck.  Lots of discipline, implementing some Dave Ramsey principles, implementing tools and thoughts by Joseph Sangl, and implementing the Infinite Banking concept by Nelson Nash through Life Success and Legacy all have helped us to reduce and eliminate massive debt, correct poor habits, begin new better habits, and get our family back up on its feet into a brighter future.  In these five years since beginning the above principles, we now see a hope that we do not have to live paycheck to paycheck and we are hopeful, real hopeful.  This, my friends, is called a testimony.  It's our story after our financial tests and we thank God for his provision through the tests and now beyond debt into a better future.  I'd love to share more - maybe you should just send me a note of contact and we could talk?  I'd like that.

 

If you'd like a copy of Nelson Nash's book, Becoming Your Own Banker, I'll send one to you for $20 and I'll cover shipping.  Write to mzimmeribc@gmail.com with mailing details.