C.R.E.A.M: Cash Rules Everything Around Me
You are likely well aware of the problems with our fiat money standard. The Federal Reserve is a monopoly banking cartel. It is a for-profit business with no legal competition.
Of course the American public has no democratic control of it either. The Fed buys US government debt. This fuels the rise of state power and the military-industrial complex.
This inflation expands the money supply and prices balloon. This fresh-printed money of course goes straight to their corporate cronies. People turn to speculation and get-rich-quick schemes. Eventually asset prices crash and a recession follows.
America needs to get back to sound money. Gold, silver, and Bitcoin are all great alternatives to the fiat currency system.
I would love run a business based in hard money. Running such a business is not an easy task.
For now most of us need dirty Federal Reserve notes to pay our way. Most of us have have seen our expenses rise a lot faster than our income since the Pandemic hit.
This highlights the need for cash-flowing assets. These create passive income for us above the maintenance cost.
The conventional wisdom was to invest in the stock and bond markets. The idea is to build up a proverbial nest-egg of assets that you can then sell to live off of in retirement.
A tax-advantaged retirement plan like a 401K or Roth IRA seems good for this at first glance. There are many pitfalls with this approach.
Markets are volatile. A great average return on your investment portfolio is 8%.
Let’s say your investment strategy works for a decade. Then a crash occurs that sets you back to where you started like what happened in 2008.1
Encountering a few such crashes is inevitable. For a young investor in their 20s or 30s this isn't a big deal. As you approach retirement these sorts of value swings are unacceptable.
The working man has no control of what happens in the markets. This is true across stocks, bonds, commodities or cryptocurrencies.
Another concern is that in retirement you have to sell your assets to get income. You might deplete your assets before you pass on. Then you have no legacy to pass to your family family.
You have no means to contribute to causes they are passionate about. You risk being ruined by medical bills.
Choose Cash-Flow Over Speculation
Instead of speculating on stocks, you want to build assets that provide you with more income. Cash flow is the income of an asset minus the associated expenses. You want an asset that provides consistent income, is easy to understand and to do business with.
One such asset is old-fashioned rental real estate. Real estate is the most tax-advantaged asset in the United States tax code. It is simple for a regular person to understand and do business with. We want to get consistent returns on investment.
These returns come from single family to small apartment units. In particular you want to own rentals where local laws are favorable to landlords. There are plenty of great opportunities for real estate investments here in the US.
Get on the Fast-Track
My friend Joe Withrow runs an investment membership called the Phoenician League. This membership will put you on the fast-track to financial freedom. Joe shows members how to build a strategic asset allocation model and work up to $10,000 a month in passive income.
The primary asset in the model rental real estate. He also provides excellent research on stocks, gold and silver, and Bitcoin. The membership includes lifetime access to Joe's comprehensive courses on finance and investments.
Joe and I sat down for an interview recently. We unpack key investing strategies in layman's terms including how to:
Build TAX-FREE savings with the infinite banking concept (IBC)
Secure SOLID investment opportunities and build long-term wealth
Manage risks with confidence by differentiating between investment and speculation.
P.S. The title comes a song by Wu-Tang Clan. Give it a listen!