Nelson Nash: Rule #1 NEVER Lose MONEY! Avoid the Financial Gatekeepers & Toll Takers (15 of 30)

This tough, simple. Don't complicate it. All right.

Backing through life insurance is a process, not a product. This is what the guy on the street in the US has been doing for years. This is my 29 year old making 285 a year. He's paid $50 a month for life insurance and complains about it. But every cotton picking one of them. Well okay. By the way anytime you get a big pool of money a de gallon you got to have something means you're protecting it. Hence the Great Wall. Protect that money. Keep the riffraff out of there. I will. Now there's certain organizations out there that have privileged access to that food and in the US one of them used to be gmac. Y' all ever heard of them? Yep. All right. That's all right. They don't exist anymore. Ally back now I guess people started catching on to what they were like and.

And so the guy that's paying 50amonth, he'll pay GMAC 260amonth on the Chevrolet Malibu. GMAC will strip out 30 and pass the money back to the insurance company because that's where they got the money. I have never seen a monthly report from GMAC and from Ecuador, New York rather. I never seen money market report from Ecuador or New York. It did not have GMAC and Associates Finance as well. They lent money.

These organizations buy blocks of money from insurance companies. They fragment it and they set it to the rip rap outside the wall.

Now.

I told you there's only one pool of money, right Bob? Yeah, there's only one pool of money Bob. Isn't he paying 3 10amonth to the insurance coming down.

253. He's going through a gatekeeper and toll decker. Living well on buddy. I'll bet you this guy GMAC is living better than he is. I've seen both parties.

Now he'd ever get that through his head and say what I'm going to do is tell old Richard Canfield that I read this book by this clown.

From a Nelson Nash institute called the Canyon Banking. And so I'm going to go see Richard and say look Richard, my need for Nancy is huge. Automobiles is just one of them. Richard, let me go ahead and give you 3 10amonth. Now I'm inside the Great Wall of China. I don't have to go through the gates. He was total junkyard. And so after a few years I've got some money because I put in 3 10amonth for four years. So Richard, I traded my old Malibu that I've been driving for four years. I need 10,550 extra for trading in my old car plus this money to get the new Malibu. And Richard gets the money from me and he says, well, whatever owns both sides. Interest rate 7 right now. 7 what equity will charge you 7% interest? Richard says, we're not going to play that game. We're going to call GMAC. And if they want 260amonth, that's what you're going to pay.

Now, y' all know that. Stick it in the ear. I'm not about to do that. I'm going to pay 1.9 like Jim Skinnifold says on the television in Birmingham. Well, how about this 0% entry? Arguably bad. There's no way. Of course I do. Yeah, but back there years ago when I was with Ecuador New York, I had Dr. Clyce bragging that they had zero percent interest on their Cadillac. Well, Mark, you're wasting your time talking them any further because that mine is locked and nothing is going to penetrate that barrier. Go find somebody else that can think.

Well, it's true.

Now, Richard says, okay.

Richard says, no, I go cut you an amortization table for 260amonth. But if you halfway smart, you will pay 275amonth.

Now, if that amortization calls for 260amonth, and if he pays 275, he's going to pay off the loan with equitable before he finishes his schedule, correct? Y' all got that? What if he doesn't finish the schedule? Will? Is he obeying what I'm teaching? Stealing the peace. He's stealing peace. How do you rectify that? Go see Richard buy no false.

Or do you see why it's necessary to have lots of falses?

Coupled with the fact that.

Like I say, this is the greatest way in the world to be able to give medium exchange to the next generations and to proliferate their systems. Now, once you get this through your head.

Okay, people like the Kennedys and families like that, rule number one is never lose Prince.

Never touch principle. Okay?

What's the Buffett's number? Rule number one, don't lose money. What's rule number two? Break rule number one. Rule two, Remember rule number one. Yeah. So you see, that's exactly describing a life insurance policy. It's always growing. And there is no truck saying is paying too much. It's impossible. Like I say, if you think this thing through, once your premiums and income match, all you got to do is go find lawyers and Finance their airplanes.

Nothing to it. All right. Now, I told y' all all the easy part of this. There's not a thing in the world complicated about this. It's just different from the way everybody else thinks. Here is the complication. These are the human factors. Now, I spent a lot of time studying this stuff down through the years. It fascinates me almost as much as the vacuum function does.

So as it relates to us. You can categorize it. Five things cover the waterfront. Parkinson's Law, Willie Sutton's Law, the Golden Rule, the Arrival Syndrome, and User Delusion. Those five covers all. Let's look at them one by one. Signor Co Parkinson was a British essayist, humorist, economist. Wrote a lot of good stuff. But one book he wrote was just a small book called Parkinson's Law. Once you see a few ramifications of it, you can extrapolate it to all kinds of situations that meet that definition. For instance, he said, work expands to meet the time envelope allowed. Ashley, give somebody a job to do, Give them three days to do it. When they gonna get it through? When are they gonna get it done? Love? Uh huh. Now, you give them six days, do the same job, what happens? Well, give them a month to do it. What's gonna happen? Does it have to be that way? But it is. I turn that loose, it'll fall every time. Wall, gravity, anything that happens every time, that's a law.

So this is the phenomenon as it relates to us in the human world. Expenses rise to equal income.

A lot of folks say, no, that's not true. Expenses rise to exceed income.

I just described your country and my country. Remember what Bill Bonner said? People buy things in the US that they don't need with money they don't have to include people they don't know or who could care less.

That's ridiculous. But it happens. Now, he said, a luxury wants a joy, becomes a necessity.

Is that true? Yeah. Well, you know, after the Audi 100, Mary got a Mercedes and that thing was a lemon. Four years it had to go. And so anyway, she got Alexis. This one had to have bun warmers, didn't he?

Yep. Y' all know what bun warmers are? Heated seats.

We eat them up here. Yeah. Now look, I have back problems. I've gone through.

What's the word? Decompression. Decompression with a chiropractor twice down through the years. First thing he does is put me on the table and put heat back there. About 15 minutes or so. Then puts me on this machine. That stretches then puts me back on the table and puts ice and electrostimulation back. Then I walk out there, just walking on there. All right. Now I get Mary's Lexus and turn off the bun mowers. And that heat didn't cost anything at all.

Once you've experienced bun wars in somebody else's car. Oh, talent, that's a necessity.

Would you think of buying one? Would you live without one? No, not now.

Now, I told y', all, I did. Definitely. Exclusively with sponsors. I go to Nacogdoches, Texas a good bit. That's a town of 35,000 people in eastern Texas. And Richard shucks, the sponsor says John Baker and Ricky heard John Baker is a fellow pilot, Mark. He's still flying by the way. Does he? No. Are you? Me Of Southwest.

But I'll tell you a story for the day. So anyway, one of his pilots is the most laid back pilot I've ever seen in my life. Now Mark, only Mark knows what I'm talking about. Us pilots called flying. Hours and hours of boredom punctuated by a few seconds of stark terror. Now during that stark terror, you gotta learn to panic calmly. This guy's going to lay back holidays, nothing bothers him. He is good. Well, he has great contacts with airplanes in Nacogdoche. And there's this manufacturer there that's got a brand new six and a half million dollar Piper Beach Rail Beachcraft 35012 place Turbo. And so there's John and Ricky, there's the pilot and his father, Marion and I, we're going to go from Nacogdoches down to Lefkin, Texas for the $2,000 hamburger.

They might understand it, but you do. Oh yeah.

$2,000 hamburger. Okay, they got me riding shotgun tower, that's co pilot. We line up there for the takeoff and the pilot turns to me, says, it's all yours. Nice. Sir, I haven't been behind the wheel in five years. You got more goodies on that panel than I've ever seen. I read about them. I've never seen them. Don't worry, I've got the throttles, I've got the flaps, I got the landing gear, I got the radio flying.

Mark, I am in ecstasy. I am having a ball. He even has me landed. You get to land it? Oh yes. Oh yes. Boy, I'll tell you anyway about on very short final there over the headset recorded voice says 50ft, 40ft, 30ft. Nice. GPWS working just fine. The radar is telling me how far above the Runway tide I'm not used to that. We pull up the ramp, shut the engines down. I yell back to Mary, mary, we got a problem.

I look at her shaking her head again. She says, no, Mary, you don't understand.

Yes, I do. Called Parkinson's law.

How's that work for you? Do you think I'm stupid enough to do that?

There's no way.