Nelson Nash: The Most Valuable Financial Asset You Will Ever Have (9 of 30)
Nelson Nash argues interest should be viewed as a proportion of spending, not just rates. He illustrates market timing pitfalls with his $10,000 silver coin purchase and advocates moving wealth into dividend-paying whole-life insurance through mutual companies instead of chasing market manias.
Chapters
Oh, yes, sir. Absolutely. But you remember, I'm a airplane driver. Did y'. All. Did I tell y' all that? Okay. I've been a pile airplane pilot 70 years. Oh, boy. There's not too many of us around.
You Canadians, y' all got. Y' all know about the Haviland Aviation? Sure. Okay. I got over beside the Vikings. Yes, sir. I've got over a thousand hours in a beaver. Oh, nice. Mister, that thing got a built in headwind. 10 mile an hour headwind slows it down 20 miles an hour.
It's a wonderful airplane. I really enjoyed it.
Yeah.
Anyway, us pilots say don't regardless of how many hours you have of flying and don't care how old you are.
Always read the checklist.
So that last one, rethink your thinking. I'd say another version of vintage. Always read the checklist.
The interest proportion of every dollar spent is perpetual. It doesn't change. Now, the volume of interest is the issue, not the apr. But everywhere you agents go out there.
People talk in terms of interest rates, right? Well, you see, that's Wall street thinking right there.
It's not rates, it's volume. Now.
I was talking to y' all about the grocery business there a while ago. Another question, a test question. Do y' all know the richest.
A man in USA is today?
Warren Buffett. Well, probably Bill Gates, but we're going to go Bill Gates here just by example. All right, do you all know what one man made him? The richest man in America.
One person made Bill Gates the richest person in the usa. Chairman of a CEO of IBM.
No.
Sam. Walter.
How'd he do it? He died.
He got that hug. He died, David.
Sam had the cancer. Multiple myeloma. Now, we had a friend in church that was diagnosed with multiple myeloma. From the date of diagnosis time he died, it was probably four or five years. Apparently, something comes on over a period of time. So when Sam was diagnosed with multiple myeloma, they divided the state up into five parts. One for mama, one for the four kids. Animal up will, twice the size of Bill Gates.
I saw a report the other day of the 25 richest families in the USA.
The Walton family, far and away richer than the Koch family. Rockefellers was number 23. I was 25.
Not bad for Bentonville, Arkansas. Yeah. So how did he get all this wealth? What? Grocery business. Don't y' all turn up the nose and get grocer business.
They're not making big profits per item. It's lots of them. Yeah. For instance, actually, do you Know how many Walmart stores there are in the world? Don't ask the president of the company. He doesn't know.
You gotta ask accountant.
And they did it by the grocery minister. Censorship. So rethink. But what does Wall street talk about?
They don't talk about that sort of stuff at all, do they? It's amazing what people listen to in Wall Street. That's why it's so important to read Big JL Roots Eat the Rich. And anything else that he.
Writes is fun and accurate. Now, anybody familiar with the Elliott Wave theory?
Elliott said that human beings behave in totally irrational patterns. And the current guru of the Elliott Wave theory is Bob Prechter over in Gainesville, Georgia. I talked to him. I haven't met him, but he sent me all four of his books.
This is from his book Conquer the How to Survive and Prosper in a Deflationary Depression. Now all my Austrian friends are talking about hyperinflation a La Germany, 1923.
If I were a bit man, I would put my money with Bob Frankter. It's going to go the other way.
Not hyperinflation. It's going to go the other way. Anyway, these are some graphs that he had in this particular book. Here's the story of the gugatulip bulbs in Holland back there in 1634, December 1, 1634 through 16, February 1637. That's a very short time frame. And you notice how julips got more valuable than anything and they went to nothing. Then exactly this next item, you know, South Sea bubble in England, 1722, I guess that's 1718 or something like that through 1722. You notice how it went up here and crashed and such. At exactly that same time John Law took France under with the Mississippi scheme.
What he was doing is the same thing as our Federal Reserve. What's your central bank in Canada or bank in Japan, Anything else? It's exactly what they were doing. Except that he was selling stock in the idea and using.
Lands west of the Mississippi in the New World. Back in those days.
Bush was all a figment in their imagination. People were so enamored as to what he was doing, Mark, he couldn't leave his home in Paris without people accosting him on the street and said, we got to get in on deal. Four years time, he took the whole country under. Unbelievable what people would do. All right, here's the Dow Jones averages. Now here's where you truly appeared, 1931. And you notice how it that dropped like so, then bounced and bounced and bounced. And bounced. The dead cat theory, Richard. The Wall street folks say you can throw a dead cat off a skyscraper, you're going to bounce a little bit. All you got to do is buy low and sell high.
Unbelievable what people will do.
All right, here's the going. Collectors.
Have any of y' all read my second book, building your warehouse at will? All right, you know, I've got that in here. Specifically my experience with silver that we two partners and I sold the lease we had on this cell phone tower on property we own.
We said, you know, we keep getting these offers instead of just having an income every year. Why, as old as we are, why don't we just go ahead and take this, Let them buy us out. So it was $45,000. That's $15,000 piece, lump sum. Well, I knew that the federal government was going to take 5,000 of that, so I had 10,000 to do something with. And so I said, well, here's my Austrian friends talking about precious metals like gold. I said, should I buy gold? Gold stocks? Oh, no, you need to buy bullion. Well, I said, well, let's see if I can go and buy gold bullion. And the hyperinflation that you guys fear comes along, and my car needs oil change, the tires rotating. Am I going to take one of them gold bars down there and scrape off the metal? And.
I don't think so. I said, silver makes much more sense. I can buy silver coins. And now my car needs service, and I go down there and give you one of those coins, and it changes my oil and changes tires or rotates the tires. So I took $10,000 and I put in gold silver coins. Double eagles or something like that. I don't know. Now, $44 a piece I paid for. Now, I'm not going to tell you where I've got them. Here.
Don't y' all come looking.
All right, now.
Office at home. And so here, a few years ago, Eric came into the office, and she'd been listening to Rush Limbo. And here's a commercial about how wonderful it is to have silver coins. That silver is going to go higher than anything.
And that's the place to put money. And so I went to the website where I bought the silver coins, and if I sold them back to them, they'd give you $22 each.
Provided I paid the freight. That's her bet. Not. And Mary said, why'd you do that?
Baby, I've been living with you all these years, and you don't know what Business I'm in, I'm in the education business. I meet more financial geniuses out there than you take a stick at. Now when they come up with all this stuff about how wonderful precious metals is, I know and I can review their message. That's worth more than the fact that the price of the silver is going down.
Now. So April 1st every year is when we get used to get the check from the leasing company, from the tower leasing. And so that first year I went back to where I got this stuff hid and I didn't find a check in there for $2,000 like I usually get.
So the next year I went back and looked at. There was no check in there.
Now if I still had the lease, the check would have gone up 20% for the next five years. There was no check there. Y' all getting the message? Yeah, but silver is the way to go.
They said so. Now also I never have been able to get this answered by these guys. If Silver's going to do what you talk about, why is it you want to get rid of it?
Why is it you want to sell it? Why don't you just keep it?
That'd make a whole lot more sense if what you said is going to use true.
Logic. Delta that doesn't it. Curtis, you got a weed Eagle?
What does that mean?
All right, so here's the decay there. That went up to almost 40,000.
There is no hope of quote recovery. In quote, that's impossible.
But yet that's what the kind of conversation says banding around out there in the financial community. It's absurd. Bank of Japan calls that.
Like all the other booms that have been out there. The central bank is the one that caused it. So how do you rectify all this? Folks? Wait.
You get the banking function out of their hands, you get a lot of folks doing what we're talking about here. Get their medium exchange stored in life insurance with mutual dividend paying companies. And you have no idea how excited I am to have. Monica, is it Monica? Monica. Do y' all know Monica here?
Did y' all hear her tell where she's from? Monica, can you tell them very quickly what you told me at a great. Monica. She lives in Vancouver now. You know about real estate in Vancouver? Oh my God. You know about Chinese in. In Vancouver. Tell them love.
Yeah, so we have lots of. I heard from lots of Chinese advisors told me that Chinese clients, they are kind of crazy in buying houses. So 5, 5 million property they buy, they own two or three. Yeah, that's within one year and then those.
It'S actually no good to local market. So local people, they can afford to own their own home especially for young people no matter how much they say every month, every year. So the savings cannot catch the pricing, house pricing going up. So I'm thinking of maybe can work with Chinese advisors to switch those wealthy clients mindset, switch from buying properties to buying insurance using this BO bunker concept.
There's a, there was some news out just the other day in Vancouver. 90% of the homes, the freestanding homes, single family homes are over a million dollars.
Yes.
In the rental market there's zero vacancy. Yeah. And there are when they say 11,000 homes in the greater Vancouver area that are vacant.
Not counting the condominium.
Right. Not counting just freestanding home. So now the city of Vancouver is looking at having a vacancy tax. If you have a vacant home that you're not willing to rent, they're going to tax you. So that's going to be a motivating factor for another pot of money to accept this.
So do you all see what this lady sees?
Yeah.
How big this mission is?
Get the banking Matthew knee level through the means of dividend paying whole life insurance does the world all kinds of good. It does. Wait with that distortion that is so prevalent there in such a beautiful place. So this is not about selling life insurance. This is about understanding who's the banker in the world and it should be utimately totally miscapable of doing so. So it's just that life insurance is the only thing that meets these qualifications.
