096 Beyond Your Wedding Day Podcast-Secrets of the Rich
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*Risk denial is something in money that can get you in trouble
*Another major problem is people wanting to get rich quick. Always looking for the easy way to riches.
*Myth: Everything will be fine when I retire, I know I’m not saving yet, but it will be okay.
-Planning on the government taking care of you in retirement is not a good plan!
*Gold is a good investment and will cover me if the economy collapses
-Long-term track record of gold is not that great: just barely above inflation
-Failed economies do not turn to gold in crisis (think Katrina)
*I can get rich quickly if I join these groups, buy this CD set, and work 3 hours a week
-Think infomercial: “learn the secrets and you too can become wealthy”
-If something sounds too good to be true, it is, RUN!
*Cash value life insurance will help me retire wealthy
-Over 70% of the life insurance policies sold today are cash value policies
-There are just so many things wrong with this type of insurance
*Playing the Lotto and other forms of gambling will make you rich
-The Lotto offers false hope, not a ticket out of poverty
-It’s sad when you see who plays the Lotto
*A mobile home will allow me to own something instead of rent, and that will help me build wealth.
-The main problem here is that much like a vehicle, trailers go down in value quickly
-The only exception may be if you buy a very inexpensive (read: already lost its value) trailer and live in it temporarily while you pay off debt, save for a house, etc.
*Prepaying for your funeral or your kids college is a good way to invest and protect against inflation
-Basically, your return on investment in this case is how much it goes up over time. College, on average, is 7% and general inflation is around 4%
-You would be much better off investing in a mutual fund for that amount
*I don’t have time to work on a budget, retirement plan, or estate plan
-These three things are essential to a happy future for yourself and your family (or favorite charity!)
*The debt management companies on TV will save me
-First and foremost, when you use one of these companies, your credit report treats it as if you filed a chapter 13 bankruptcy
-They are also incompetent and charge HUGE fees in order to pay your debt down.
*My divorce decree says that I don’t have to pay the debt, so I don’t
-The divorce court does not have the power to take your name off of a debt. If your name is on it, you are responsible for it: period!
*That collector was so helpful; he really likes me.
-They are not your friends and if they are nice it is a tactic
-NEVER send in money on a deal made over the phone without having it in writing first!
-Also, never give access to your checking account
*I’ll just file bankruptcy and start over; it seems so easy
-It is not a walk in the park and no one wants to go there
-Chapter 7 stays on your report for 10 years, Chapter 13 for 7 years
-Plus, many applications ask if you have EVER filed bankruptcy
*I can’t use cash because it is dangerous, I might get robbed
-Carrying cash does not increase your chances of getting robbed
*I can’t afford insurance
-As cliche as it might be, you can’t afford not to have insurance
-Not having life, disability, or health insurance can make a bad situation worse really fast!
*Doing a will is kind of morbid/creepy
-70% of Americans die without a will
-It is a gift to your loved ones and is another way of taking care of your family, just as getting a job is