Dr. Ace's Guide to Personal and Financial Freedom

Dr. Albert "Ace" Goerig

• Publisher: Albert C Goerig
• Year: 2019
• ISBN:
  9781646630097
• Edition: 1
• Topic: Negocios y empresa
• Subtopic: Gestión del patrimonio

Most Americans do not understand their finances or how to invest successfullyand will have to keep on working well beyond the retirement age. Because of the coalition of four (advertising industry, media, merchants andbanks) has created a financial system designed to take away our freedomand keep us stressed, broke and in debt for our entire life. This book will giveyou a specific guide to get quickly out of debt and create personal wealthpredictably and safely. It does not matter how much you make or what youdo; this simple program will help you find the peace and financial freedomand security in your life that you have always wanted.

You will learn how to:

• Take back your financial freedom and control of your life.

• Be completely out of debt in 5 to 10 years.

• Use the little used investment strategies that will make over 100%return, guaranteed, without risk or tax consequence.

• Prevent the financial mistakes that can destroy your life.

• Learn the three choices that lead to happiness and peace.

• Use a step-by-step plan to invest safely and predictably on yourown and do better than 90% of the actively managed mutual fundswhile eliminating commissions and brokerage fees.

• Create your own private family bank where returns grow tax-free, are guaranteed and can be used to fund your lifestyle tax-free.

CHAPTER 1

Create an Incredible Life Story

In a May 2017 interview with Charlie Rose, Warren Buffett was asked what gave him his greatest joy. “That I love going to the office,” said Buffett. “It has been my painting for more than fifty years. I get to paint what I want; I own the brush, I own the canvas, and the canvas is unlimited. And that is a pretty nice game, and I get to do it every day with people I like. I don’t have to associate with anyone who causes my stomach to turn. If I were in politics, I’d have to smile at a lot of people I’d rather hit. I’ve got a really good deal, and I am hanging onto it.”

Most of us forget that we have the brush and the canvas, and that we can create our story any way we want. This book will help you through the process.

Creating a New Life Story

We are here on this planet for a relatively brief period, and all we have is from now until the end of our lives. So, how can we make the most of this time?

To live our lives to the fullest, we need to create a new vision or story of what is possible. We all can live the rest of our lives as an exciting adventure. For most of us, because of our cultural context and the lack of training we have received regarding financial matters, it is difficult to set up a guide for reaching financial freedom or even to recognize that our way of relating to money could be very different. However, if we write a story about how we want to live, it is easy to develop and follow a guide to fulfill that story. However, most of us don’t know how to develop a coherent and compelling story about financial and personal freedom.

Most Americans want to have more time off to enjoy their family, hobbies and personal time. They are burdened by long-term debt. Many of them are stressed at work and exhausted when they come home. They are unable to see the possibilities that life has to offer. With the right game plan, they could be debt free within 5 to 10 years, work fewer days a year in a drama-free, stress-free office where they work with the people they like. You may not realize it, but you have the canvas, and you have the brush to create the life of your dreams. In the Eagles song “Almost Gone” they sing, “So often times it happens that we live our lives in chains, and we never even know we have the key.” This book was created to help you find the key, to show you the possibilities in your business and personal life and to give you the tools and ideas to create your story. As you go through the book, write down the things you want to change and the steps that you will take to create your new life story. The possibilities are endless.

The best stories are specific and flexible—specific in offering a full vision with rich detail, and flexible because life is a process and we are always growing. As new experiences arise, we begin to see things at a deeper level. When situations change, we need to give ourselves permission to change our minds to stay within our own integrity. You can create a beautiful story that incorporates abundance into your life. Having your finances in order will help support your positive story so you can live life fully. However, writing a life story takes great courage, because it involves change. Sometimes you need to change many things to live a free and independent life. In this case, you are called upon to face your fears of confrontation and conflict and to create the life you want. Your story shows the world your intent to change and starts you on your new path. Gandhi was once asked, “What is your message to the world?” He replied, “My life is my message.” What is your message to your children?

How to bring abundance into your life

The reason we create positive stories is to let the universe know what we want. I personally believe that we can bring anything—positive or negative—into our lives, depending on our thoughts. This happens by creating a clear, positive vision of exactly what we want and knowing (believing) that it will come about. This could be an increase in referrals, doing more cases or finding the right associate or team member. More than 100 years ago, in his book The Science of Getting Rich, Wallace Wattles talked about focusing on what you want and not on what you don’t want in your life. We need to put our energies into the creative and not the competitive aspects of life. I never spend any time worrying about what others are doing. Why? Because there is unlimited abundance. If we have the right focus and vision, we can bring whatever we want into our lives. The real fun is helping others create abundance in their lives. I spend little time listening to the negative events in the news, which I cannot control. My real joy and happiness come from relationships with family and in my practice. Abundance always comes when we are thankful for all the gifts and richness that we have in our lives.

A Tale of Two Families (age 25)

Family “A” Earns $72,000 a year.

They have fallen for the scam, and they live big. They buy the big home, expensive cars and other toys to build their ego and try to make themselves happy while continually creating debt and making monthly payments.

By age sixty, they have paid off their mortgage and school loan, but they still have a second mortgage, car payments, credit cards and other debts; they have only $80,000 in their retirement account.

Both parents are working full time and resent going into work because they are working just to make their monthly payments. This is reflected in their relationship with their family and co-workers. They will give 2/3 of their life’s earnings to their creditors, including the taxes paid on that income. Along with that, they will have given up their freedom and a life of choice, which will keep them working for many more years because they have to—not because they want to.

Family “B” earns $72,000 a year.

They live simply—on one salary—and use the other salary to pay off debt early. In eight years, they are debt free, including all credit cards, cars, mortgages and school loans.

At age 33, they have no debt and still live on 1/3 of their income. They now have 60% to 70% of their income to invest for retirement, children’s education, vacations or charitable contributions. They have less stress, and one spouse may choose to work part time only—choose to be full-time stay-at-home parents. They work because they want to—not because they have to. They have more time for family and friends. They now pay cash for all purchases.

Because they have maximized their retirement, Personal Bank and personal investments, at age 60, they have more than $3 million in their retirement and personal investment account.

Using this system, a typical family with $72,000 annual income and $209,000 in total debt would be completely debt free in 5 years and 7 months. This includes owning their home, cars and everything else. Then they can start investing in their retirement, children’s education and personal investment account, as will be described in the final chapter.

You Can Become a Millionaire

Here are the lessons from the book The Millionaire Next Door, by Thomas Stanley and William Danko. Wealth is not the same as your income. Wealth is what you accumulate (net worth) and not what you spend. Wealth comes from hard work, dedication, planning and self-discipline. Millionaires do not live in upscale neighborhoods or drive fancy cars. A millionaire’s goal is to become financially independent, which is much more important than displaying high social status. These financially successful people control their consumption and do not allocate too much money to products and services. Millionaires are frugal; they live not only below their means—they live well below their means. Most millionaires live in an average home and drive a used car; their children go to public schools. They are married to the same spouse, who is also a conservative spender. Warren Buffett, one of the richest men in the world, has lived in the same modest house for more than sixty years, sent his children to public schools and drives an eight-year-old car.

We all have choices on where we want to spend our money. We could buy a smaller house, go on fewer vacations, buy a smaller car and put more money into investments. Most people do not consciously sit down and consider their choices; instead, they haphazardly spend their money without focus. Until we are debt free, we are restrained by our income, so we need to create a game plan and focus our excess money in order to draw up a guide for personal and financial success.

I used to go fishing each year with my brother on the Kenai Peninsula in Alaska. For $200 a day, we would hire an older fishing guide, named Bob. He had a small (14-foot) Lund boat that we would drag out into the ocean and fish for salmon about 100 yards offshore. When he was not guiding, he would drive a school bus during the rest of the year. His wife worked at the post office, and they lived in a small log cabin near the ocean. They lived very conservatively and ate well on salmon and meat from hunting season. Bob died in 2008 at the age of 87. My brother, who was Bob’s attorney, was shocked to find that his investment in a Schwab account was more than $8 million. He had most of his money invested in no-load index funds, as described in the final chapter. This program can make anyone with the right commitment a millionaire.

CHAPTER 2

The Fastest Way to Become Financially Free

When all investments are put into perspective, the best returns are from paying off debt and increasing your business profitability. These choices can give you a return of more than 100%. Below are the past ten years’ average returns on various investments.

• Home: 0–5%. According to Zillow, while home prices have appreciated nationally at an average annual rate between 3% and 5%, depending on the index used for the calculation, home-value appreciation in different metro areas can appreciate at markedly different rates than the national average. Over time, home values grew about 0% after inflation. Plan on spending 5% of the value of the home to buy it, 10% to sell it and 1% to 2% a year to maintain it.
• Average actively managed fund investment: 2.6%. According to Forbes (“Why the Average Investor’s Investment Return Is So Low,” Sean Hanlon, Apr 24, 2014), the average investor in a blend of equities and fixed-income mutual funds has earned only a 2.6% or less net annualized rate of return for the ten-year period.
• Inflation: The current inflation rate reported by the US Department of Labor for the United States is 2.8% for the 12 months that ended May 2018. Remember that a 3% inflation reduces your 10% stock return to only 7%. But it also can reduce your 2% return on bonds to a negative 1%.
• Short-term Bonds: Over the past five years, bonds have returned only 1.4% annually.
• Personal Bank (infinite banking concept): Over the past 30 years it has provided a guaranteed tax-free return of 4% to 5% (see chapter 6 and go to personalbank4u.com).
• S&P 500: The most recent 15-year return on this index is 8.8%, although the average over the past 50 years has been around 7%.
• No-fee investing saves you up to 70% more on your investment returns. This can be done by investing on your own, which is well described in this book. When you pay 1% to 4% in fees to financial advisors, brokers or mutual fund companies that actively manage your investments, it could cost you 70% of your return, making you work 10 to 15 years longer before you can retire. If you pay fees of 3% and your investments return only 4%, you get 25% of the return, and your broker and mutual fund get 75% of the return. What happens when the return is only 2%? Your commissioned broker’s mantra is “Heads I win, tails you lose.” Learn to invest on your own. This book will show you how.
• Paying off debt: Up to 500% (5×) return.
• Investing in yourself or your business: Up to 100% increase in return on investment.

You will see how the power of paying off debt can give you a guaranteed return of more than 100% without risk or tax consequence. Everyone needs to focus on what produces the greatest returns. If you execute this game plan right, then you will have more money than you will ever need, which you can trade in for time, freedom and choices. Investing in the stock market is not a way to make you rich quickly. It is a way to allow your money to compound over time to provide a very comfortable retirement. I will show you the best strategies to safely get the highest returns investing by yourself, without paying the extraordinarily high fees and commissions of financial advisors, brokers and mutual fund companies, where they can take 70% of your retirement returns.

When this strategy is implemented correctly, you will never have to touch the money you have in the market. Remember that paying off debt first while you increase your income provides the highest returns, with much more predictability than anything you could do by investing in the market.

Freedom Facts

The fastest way to become financially free is to pay off all debts before you put money anywhere else. The advantages to paying off debt first are:

1. Easiest and simplest to do and understand.
2. Can make more than 100% return on your money, guaranteed, without risk or tax consequence.
3. Can be done automatically, right out of your bank account.
4. Changes you from a spender into a saver.
5. You can now invest more into higher-return stocks like the S&P 500 index fund because your paid-off home and business act like a long-term, inflation-adjusted bond. The 20% of your income that you were using to pay off your mortgage now becomes a bond-like investment, getting 20% return on your paid-off home.
6. Once debt free, you have three times the amount of disposable income (previously, 2/3 of your disposable income was paid toward debt) to spend on investments and enjoying life.

One of the biggest misconceptions that keeps you in debt which is perpetuated by banks and accountants is that you should not pay off your ...