Are you protecting, saving or growing money?
To simplify how we describe the various buckets of money people use to invest, save and grow their wealth, we searched long and far for a planning source that not only made sense to us but could do the same for virtually anyone who could read.
Dave Vick’s book, Bat-Socks, Vegas And Conservative Investing, is a great way to relate our research and analysis to the various buckets of money most people have or strive to have. Green Money is reserved for those asset classes where the principal, the corpus, or the foundation is protected or guaranteed if certain rules are followed. By ‘protection’ or ‘guarantee’ we mean some large financially-stable institution must underwrite the risk. Now don’t laugh. We know the world is a wreck according to all the pundits. There are companies that have done this for over 200 years!
There are lots of financial products that have guarantees or what seem to be guarantees but only a few follow these rules:
1. Principal is guaranteed.
2. Retain your gains (annual reset).
3. Can turn on a paycheck for life.
Simple right? When you look at various products that are offered to you to fill this part of the financial plan, take a little extra time to question whether these rules are followed and, if so, how.
Products that tend to fall in this category:
Whole or permanent life insurance – the cash value plus the growth
Fixed or Index Linked Annuities – the deposits (principal) plus the growth
That’s about it. The banks don’t pay anything so what’s the point? Bonds are fragile. Think Europe. Where else on earth can you get a return or a potential of greater than say 2% while not worrying about what government or entity will go deep south overnight? Sure, you can find all kinds of smaller entities willing to back their guarantees but none as powerful as the biggest insurers. These guys go down, it means there’s nothing left – time to hit the re-set button.
3 main complaints we hear about Wall Street and the financial industry are outlined in the video (below). Regardless of who you work with, whether it’s your financial advisor, banker or your insurance professional, none of us are happy when we need them and they are nowhere to be found. We also get frustrated when stuff goes wrong and they either make excuses or excuse themselves from our lives. And we can sometimes feel very insecure when the financial parts of our lives seem to be all over the place and we have no idea how to manage it, where the potholes are or how it all fits together.
What we attempt to do here is find pain that many people are suffering from and show you ways to address those pains with “Green Money”, that is, principal protected (and a few other rules) financial and insurance products, that, if intelligently managed, can make your life so much better.
Further, when we find professionals out there who have a super high “AQ”, or “Advocacy Quotient”, we put them on our list so perhaps one day a particular problem you might be having can be addressed by their process.
Please enjoy our site as we are working on this and the entire cadre of “Color Sites” every single day in an attempt to help you through the complex maze of financial options.
Green money update
We believe in making Wall Street easy for the rest of us on Main Street to understand. We use a simple system where
A = Yellow, or Liquid Money
B = Green, or Guaranteed Money
C = Red, or Risk/Growth Money