The Huckster

Predicting the future is a very hard thing to do especially when it involves investments. Calls come into my office quite regularly by people trying to sell gold, silver, stocks, and gas oil. They make claims about how wealthy you can get.

They have all kinds of voodoo evidence as to how these investments are going to take off in a short period of time.

You have probably experienced a similar situation. And the fact is no one can control the markets let alone predict with any accuracy. One thing they have is a 50% chance of getting it right. Probably better odds than what you would get at the tables in Vegas.

I can tell you right now how to predict the markets with accuracy in the next 90 days. If the Congress does not face reality rather than kick the can down the road we are going to be in serious trouble.

When you see banks that are offering 3% down that would be $4,500 on a $150K house in mid-America. The homeowner has no skin in the game. There is a high probability that they will default and we will be in the same situation that we were in 2006-2008.

You could not stay afloat if you were to run your family budget the way Congress runs the finances of the country. It is getting to the point that the country will not be able to pay interest on the national debt of $20.575 trillion.

The Huckster, in this case, is the Congress that is trying to sell us a bill of goods that is going to ruin the country over time. It is not just the present congress but many others in the past year have overspent. Last president to balance the budget

Now that charges have been made to how FICO scores are to be tabulated a credit report becomes less reliable. Credit card debt, car loans, and some mortgages have a higher rate of default. There are many HELO loans (home equity line of credit) that are coming due with an interest reset that a lot of people will not be able to afford. Debt Dilemma

What are you doing to increase your passive income? Don’t run your finances like the government. What many of you need to do is start a Roth IRA, HAS (health savings account) or a Coverdell Education Savings Account (ESA). They all have tax advantages. One place where you can get information on these programs is www.questira.com. (I am not connected with them in any way other than I have IRA accounts with them. Not an affiliate.)

There is a gentleman I met that put $2,000 in his daughter’s ESA took a $1,000 out and bought an option on a house for $1,000 and sold the option for $15,000 which went directly in the ESA TAX-FREE. Is your child’s educational account growing?

Don’t complain do something now. Pay yourself first. Follow the example of the business philosopher Jim Rohn. Passive income will provide you independence and security.