Sunday, June 29, 2025

Nationwide kills the 4% rule big time. Happy and rich retirement is not really so difficult to achieve

Nationwide kills the 4% rule big time

It is well known that in order to be safe and never run out of money in retirement you should invest conservatively and only draw 4% of your account value per year in order to not run out of money.

Here is great news for you if you old enough and plan to retire soon. There is at least one product on the market, readily available to make you 7% or more for life no matter how long you plan to live. And even if you want to start immediately.

If you are 62 and would like to start getting money right now, here you are:

7% of your income for life guaranteed. See the image below.

and really it is not all the story

You can and will get more in later days, as the annuity is indexed and will grow with the market.

Write us at askmoneyadvice@gmail.com and we can make the happy life happen today

Even better

You can start now and withdraw in 5 years, and get 109K/year till the end of your life, from the same starting point.

Next time you see someone sitting in the business class and sipping champagne, you will not wonder anymore how they can be so sure they will not run out of money and relaxedly enjoy life.

References and Links

ask-money.com - a lot of useful info about financial planning and enjoyable retirement
Nationwide lifetime income calculator

Saturday, June 14, 2025

The $42K Question: What a Car Really Costs You in 5 Years

When James decided it was finally time to get a car, he called his old college roommate, Daniel. Both were entering their thirties, working stable jobs, and thinking about financial security. But when it came to buying a car, their decisions diverged—and what happened over the next five years became a case study in how we really spend money.

Scene 1: The $30K Sedan

James went traditional. He bought a sleek $30,000 sedan, financing the full amount over five years at 7% APR. His monthly payment was $594, predictable and manageable. After five years, the car was paid off and worth about $15,000.

James’s financial outcome: He paid a total of $35,600, had a car worth $15,000, and effectively spent $20,600.

Scene 2: The Investor’s Path

Daniel, on the other hand, took an unorthodox route. He didn’t buy a car at all—at least not right away. Instead, he invested the same $594/month in a mutual fund earning 7% annually.

After five years?

Daniel’s account balance: $42,500.

Sure, he used public transport and rented a car for the occasional road trip, but the returns spoke for themselves. By not owning a car, he not only avoided depreciation, he grew wealth.

Scene 3: The Frugal Hybrid

Then there was their friend, Sarah. She split the difference—literally. She bought a reliable used car for $10,000, also financed over 5 years. Her payments were just $198/month. But she didn’t pocket the difference. She invested the remaining $396/month at the same 7% rate.

In the end, she had a car worth $5,000 and an investment account with $28,400.

Sarah’s net worth after 5 years: $33,400.

Conclusion: Three Roads, One Lesson

Person	Car Value	Investments	Net Worth
James	$15K	$0	$15K
Daniel	$0	$42.5K	$42.5K
Sarah	$5K	$28.4K	$33.4K

James had the nicest car. Daniel had the most money. Sarah had both.

Let’s set aside Daniel’s choice for a moment—not everyone is that frugal, and life without a car can be a significant adjustment.

Owning a vehicle offers convenience, freedom, and quality-of-life benefits that public transit can’t always provide. But what truly made the difference was the car Sarah chose. By opting for a modest $10,000 vehicle and investing the remaining $396 per month instead of upgrading, she set herself on a long-term path to financial growth.

Now, freeze the moment her car is paid off and fast-forward 20 years—with no additional effort. Her initial 5 years of investing would have grown to over $114,000.

Compared to James—who spent the same amount but ends up with just a used car—Sarah’s modest decision created lasting wealth with zero effort beyond the first five years.

Use Loan and Investment Calculator to play with the numbers if you want to check your own scenario

Thursday, June 12, 2025

Simple Ask-Money loan payment calculator and investment return estimator

Mortgage Calculator

Loan Amount (in $1,000s):
Annual Interest Rate (%):
Loan Period (Years):

Investment Growth Calculator

Initial Investment ($):
Monthly Investment ($):
Annual Interest Rate (%):
Investment Period (Years):

Wednesday, April 30, 2025

On the Multi-Tier Structure of Life Insurance and Annuities Broker Corporations like WFG

Introduction

Short note explaining the structure of the organization and making sure that important concepts are understood.

Structure of WFG and Similar Companies

A company like World Financial Group (WFG) operates using a multi-tiered agency model, often compared to multi-level marketing (MLM) but within the financial services industry. This structure enables rapid network expansion by leveraging independent agents to recruit, train, and manage new members while selling financial products such as insurance and investment services.

Roles in the Structure:

Top Leadership & Corporate Support – The company provides financial products, training, and compliance oversight.
Executive-Level Field Leaders – High-ranking agents who have built large teams and earn commissions based on overrides from their downlines.
Recruiters and Trainers – Agents who focus on expanding the network by recruiting new members and mentoring them.
New Associates – Entry-level recruits who start by learning, obtaining licenses, and selling to their immediate network before moving up the ranks.

Necessity of This Model in an Understaffed Market

The financial services industry faces a shortage of brokers and advisors due to:

An aging workforce (many traditional brokers are retiring).
Increasing complexity of financial products requiring more advisors.
Low awareness or interest in financial advisory careers among younger generations.

The WFG model addresses this gap by aggressively recruiting from non-traditional backgrounds, training individuals with no prior experience, and allowing them to build careers while expanding the network. This enables a massive influx of new financial professionals in an otherwise understaffed sector.

Comparison to Early Missionary Expansion

WFG’s recruitment model resembles the approach used by early Christian missionaries:

Missionaries (Field Leaders) trained new disciples (new recruits).
New disciples became evangelists, spreading the message (financial services) and recruiting others.
Growth relied on personal networks, referrals, and mentorship, just like in WFG.

The structure was self-sustaining—each recruit was expected to continue the expansion, much like WFG's multi-tiered recruitment.

Conclusion

This model is efficient for rapid expansion in an industry that needs more professionals, but it also comes with challenges, such as criticism for emphasizing recruitment over expertise. The success of an individual in such a system depends on their ability to sell, recruit, and train others, rather than just financial acumen alone.

Analysis of WFG’s Structure vs. Traditional Multi-Level Marketing (MLM)

Compensation Model

WFG: Agents earn commissions from direct sales of financial products (insurance, investments, annuities). They also earn overrides (a percentage of commissions) from the sales made by their recruits.
MLM: Distributors earn commissions from direct product sales but rely heavily on recruitment, where the primary income source is from the purchases of recruits rather than external customers.

Product and Service Nature

WFG: Offers regulated financial services (insurance, investments) that require licensing and compliance with financial laws. Products are from third-party providers like Transamerica and Nationwide.
MLM: Often sells non-regulated consumer goods (supplements, cosmetics, etc.), with low barriers to entry—anyone can join and start selling.

Recruitment Emphasis

WFG: Strong recruitment focus, as growing a team increases commission potential. However, selling financial products is required for income, as recruits must get licensed and actively sell.
MLM: Heavily dependent on recruiting, often leading to pyramid-like structures where most revenue comes from internal purchases rather than external customers.

Barriers to Entry and Professionalism

WFG: Requires licensing (state-regulated exams), ongoing training, and professional compliance, meaning recruits cannot simply pay a fee and start earning.
MLM: Usually requires only a sign-up fee and starter kit purchase, with no formal education or licensing needed.

Revenue Transparency and Sustainability

WFG: Revenue comes from legitimate financial transactions. The business can function independently of recruitment as long as agents sell financial products.
MLM: Most participants lose money because success is contingent on continuous downline expansion rather than product demand.

Conclusion: Equivalent or Different?

Based on the structure, WFG shares recruitment aspects with MLM but differs significantly in execution and legitimacy due to its regulated products, licensing requirements, and product-driven revenue model.

While WFG relies on recruitment to expand, it is not purely an MLM scheme since:

Agents must sell real financial products to earn commissions.
Regulations prevent WFG from being a pure recruitment-based income model.

MLM-like elements exist, but financial services create a more sustainable revenue stream.

Thus, WFG is different enough from traditional MLMs not to be classified as one.

Sunday, February 16, 2025

ASK Money mission statement

If you’ve found your way here, chances are you have some questions about money—and we’re here to provide the answers. The primary purpose of this portal is to address your concerns and help educate you about the opportunities available to everyone to achieve financial prosperity.

The Importance of Proper Money Management

Financial education plays a critical role in today’s world, where managing money effectively has become a cornerstone of a secure and fulfilling life. We often hear that the gap between the wealthy and the poor grows, and do not realize that the reason for this is very simple: action versus passive indifference.

The Value of Lifelong Learning

Life is a continuous journey of learning. From childhood to old age, we acquire knowledge and skills to navigate the world. We learn how to walk, speak, and interact with others as children. In school, we tackle subjects like math and science, and later, we develop practical skills like riding a bike, driving a car, or performing a job.

Those who embrace learning feel more confident and prepared. On the other hand, those who avoid it often struggle to adapt when life inevitably demands new skills or understanding.

Why Learning Matters

Learning prepares us for challenges, turning discomfort into confidence. While basic skills are often learned through trial and error or with help from friends and family, more complex subjects require guidance from teachers, mentors, or experts. For instance, the principles of physics, chemistry, or biology were developed and refined over centuries by dedicated scholars. Today, they serve as foundational knowledge for countless practical applications.

At first, the purpose of learning something may not seem obvious—why understand the structure of a cell or the properties of a chemical compound? But what we’re really learning is the ability to combine ideas, think critically, and solve problems. This skill empowers us to tackle everyday challenges like planning vacations, redesigning gardens, or managing busy schedules.

Some problems we choose to solve no matter what

In many areas of life, we’re able to manage on our own or with the help of friends, videos, or online tutorials. However, when faced with more complex challenges, it’s often necessary to seek expert advice or outsource the task entirely. For example:

Health: You can treat a minor headache with over-the-counter medicine, but for persistent symptoms, you see a doctor.
Home Repairs: You might patch a small hole in your wall, but for major repairs, you’d hire a contractor.
Taxes: While tax software simplifies filing for many, complex financial situations often require professional accountants.

In each case, whether you do it yourself or hire someone, the problem gets solved because ignoring it would make life significantly harder.

The Overlooked Priority: Finances. Is it really optional?

When it comes to money, many people don’t treat it with the same level of urgency as other responsibilities. Finances are often seen as optional or secondary—something to address "later." But this mindset can lead to wasted potential.

Imagine a farmer who grows a bumper crop of potatoes but neglects to store them properly, letting them spoil in the cellar. Or a winemaker who doesn’t invest time in aging wine, letting it turn into vinegar instead of increasing its value. These are missed opportunities, just like letting your hard-earned money sit idle, lose value to inflation, or disappear in unnecessary taxes.

A Wake-Up Call

This is your reminder to take control of your finances. Don’t let the fruits of your labor "rot" due to inaction or uncertainty. Whether you choose to learn how to manage your money yourself or enlist the help of a financial advisor, the key is to act.

Your hard work deserves to be protected and maximized. Start today—because making informed financial decisions will not only bring you peace of mind but also open doors to opportunities you might not have thought possible.

Managing finances doesn’t have to be overwhelming. Yet many people hesitate, saying, "I don’t know what to do." This is no different from the countless other areas of life where we initially lack knowledge but find ways to learn or seek help.

Financial advisors act as guides, helping you turn your income and savings into something more valuable. They can:

Help you create a personalized financial plan.
Teach you how to handle money wisely.
Protect your assets from unnecessary risks.
Ensure your money grows instead of losing value over time.

By working with a financial advisor, you’re not just safeguarding what you’ve earned—you’re building a more secure and prosperous future for yourself and your loved ones.

Conclusion and contacts

If you are ready to make a difference in your life, please go and contact a financial advisor now. Most of them are honest people trying to help and educate.

But if you want to talk specifically to me, use the askmoneyadvice@gmail.com to communicate and we will find a great solution for your future prosperity.