In this episode, Infinite Banking Concept Authorized Practitioners Brian Moody and Hans Toohey discuss conventional investment wisdom that they no longer buy into. They critique the unspecific yet incessant advice to "buy the dip," “the market is on sale,” on every downturn, arguing that it lacks any semblance of technical analysis and ignores crucial factors like taxes, fees, and inflation. 

Federal Reserve policies have inflated asset prices, creating a disconnect between market performance and actual economic productivity. They illustrate the risks of market-dependent retirement plans using historical data, demonstrating how early market downturns can devastate retirement savings.

When financial planning, prioritize wealth protection and optimal savings before focusing on growth. Hans and Brian argue that this method creates a more robust financial strategy that is less vulnerable to unexpected life events or economic changes.

• ​Question blanket investment advice: Be wary of general recommendations like "always buy the dip." Such advice often overlooks crucial factors including taxes, fees, inflation, and your personal financial situation. Instead, seek out more nuanced, personalized financial strategies that consider your specific circumstances and goals.
• ​Plan for market volatility in retirement: Understand that market downturns, especially early in retirement, can significantly impact your savings. Develop a strategy to mitigate the sequence of returns risk. This might involve maintaining a cash buffer, adjusting withdrawal rates, or using alternative income sources during market downturns.
• ​Diversify with non-correlated assets: Non-correlated assets, such as whole life insurance, should be incorporated into your financial portfolio. Whole life insurance, when used for the infinite banking concept, can be used to control the banking function in your life. It can also provide a buffer against market volatility and offer more financial flexibility, particularly during retirement. They can serve as a stable source of funds when you don't want to sell investments in a down market.
• ​Prioritize protection, then savings, then growth: First, ensure you have adequate protection against life's risks (through insurance and emergency funds). Then focus on building savings. Only after these foundations are in place should you concentrate on growth-oriented investments. This approach can create a more robust financial strategy that's better equipped to weather unexpected events or economic changes. There is no point in accumulating a large nest egg when it can be destroyed in an instant by the many eroding factors that relentlessly pursue capital generation.

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