December 14, 2016

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People sometimes seek my advice on how to be successful in investing. Obviously my family gave me a great start, but even with that advantage it takes some hard work, a good education, smart choices and really good luck to be successful.

So, with that all said let me share some advice for young investors that is as close to fool proof as anything I know.

This story is worth repeating because it is a tried and true plan that while not very sexy, consistently works.

Four young men went to work for the same company after college. It was a fast growing company and they were being paid very well. So well in fact they sought the advice of an older man who obviously had done well in creating wealth.

"Where should we invest” they asked? “Mutual funds, equities, partnerships, bonds, commodities - what is your best advice?"

The sage older gentlemen said "My best advice is first to invest in cash value life insurance."

"Life insurance? Surely you jest" the youngsters ask.

"No," he said, "because cash value life insurance from a top rated company has passed the test of time over and again. It's not a get rich quick deal, but a decent return is pretty much guaranteed plus you have protection from lots of situations you may face later you can't even imagine today. Those other vehicles might make you more money, but the risk is much, much greater. You can take those risks later.”

He suggested each young man buy as much cash value life insurance as they could afford and said "I promise if you do this you will be thankful some day."

On the occasion of the 4 men’s 43rd birthdays they were together and one fellow asked, "Did any of you follow Mr. Successful’s advice about buying life insurance?"

Three said they had not, but one guy said he had. He said he'd agreed to invest $1,000 per month and that once it started coming out of his account he didn't really miss it. It bought him $1.1 million in a coverage called 65 Life.

"So, how has it worked out," they asked?

He had paid $240,000 in premiums and had a cash surrender value over $300,000, plus insurance coverage over $1.5 million. And, if he continued his premiums his projected Annual Income at age 65 would be over $70,000 a year!

"Best investment I've made," he said "for several reasons with the most important being all these years my family has been well protected and my investment paid consistent dividends.

My advice for anyone wanting build a strong financial foundation in these uncertain times is to take a hard look at cash value life insurance from a good company. Company records are easy to check life insurance seldom loses value!

I'm glad I did!

I'm Steve Sauder