Joe Withrow, Author at Zenconomics

The stock market’s new era…

Quick question… When you think of the stock market, what comes to mind?

Is it the rapid rollercoaster of ups and downs? The joy of watching a stock you own soar, or the sinking feeling when it plunges?

I’m here to share a secret with you—one that’s been right under our noses for over half a century but remains almost hidden.

We’re all familiar with the unpredictability of the stock market. Some days it’s smooth sailing. Others, it feels like navigating stormy waters.

But what if I told you there’s a way to anchor your portfolio—a way to ensure it remains stable, even amidst the fiercest of market storms?

Throughout my multi-decade journey deep into the realm of investment research, I’ve been on a relentless quest. A quest to discover the ultimate method to craft an unshakeable portfolio. One that stands tall through changing times, economic climates, and fleeting market trends.

From the commodities craze in the ’70s, the tech bubble of the ’90s, to the recent uproar over metaverses, NFTs, and interest rate hikes – the market is continually evolving.

However, many of these trends fizzle out, sometimes leaving catastrophic financial scars. Imagine watching a portfolio, once on the brink of reaching a million dollars, collapse to a mere fraction of its worth. That happened to more than a few investors during the dot-com bubble.

Navigating the Shark Tank: Why Most Retail Investors Sink in the Stock Market

The stock market sometimes appears to glisten with promises of immense wealth. And this tends to lure unsuspecting investors like a shimmering ocean under the sun. We saw this very clearly in 2020 and 2021 with the rise of Reddit traders and “meme” stocks.

But as many of those rookie investors discovered, underneath the enticing waters lies a treacherous realm. These are shark invested waters. And the unprepared often become their prey.

Many of us have heard romantic tales of maverick traders and overnight millionaires. But the reality for most retail investors is far from a storybook epic.

Studies from market research firm Dalbar prove this. They show that the average retail investor underperforms the market year after year. There are several reasons for this:

Buffett’s 56-year Old Secret: The Unnoticed Treasure in Plain Sight

Yesterday we unmasked the flaws in the traditional approach to stock market investing. As we delved into the murky depths, one thing became clear… much of what the world perceives about the stock market is rooted in short-lived trends and fleeting theatrics.

Today, we’re going to shine the light even further into the dark corners. We’re going to talk about an investing secret that’s been hidden in plain sight for over 56 years. This secret holds the key to building a stock portfolio that will drive returns for us year after year.

We can clearly see this secret if we assess Warren Buffett’s track record over the last five decades. It’s right there staring us in the face.

Buffett is generally considered the greatest investor of our time. So you might be wondering, “How could anything about Warren Buffett, one of the world’s most talked-about investors, remain a secret?”

The answer is simple. We have to look at what Buffett has done – not what he’s said in recent years.

Unmasking the Flaws: The Pitfalls of Traditional Equity Analysis

We’re going to dive into the murky depths of the stock market this week. As readers who have been following along for a while now know, this is a subject we haven’t discussed much in these pages.

That’s largely because the financial media puts the stock market at the center of the universe. It’s the Sun around which everything else revolves. It’s the center of modern finance’s heliocentric model.

But from my experience, stocks should make up only one part of a robust asset allocation model. And stock market investments are not the path to financial freedom. They simply help with financial security.

Still, this asset class has a place. As such, we need to look at it with a critical eye.

Here’s the thing – the stock market is a realm of constant evolution. Every epoch has seen its unique set of market trends.

Finding True Purpose Through Financial Independence

All week we’ve discussed a new approach to retirement planning. But with this one, we scrap the traditional idea of retirement completely. Then we replace it with the pursuit of monthly cash flow and financial independence.

Now, let’s take a moment to talk about what all this financial planning is for…

I read a lot of wealth-building/self-help books back when I was just getting started on my journey. Back then, when they would talk about motivation, they would suggest readers make a list of material goods they wanted to have. Big house… fancy car… nice watch… slick wardrobe – all that stuff.

I don’t know if the wealth-building books today still pitch that nonsense… but that’s exactly what it is. Nonsense.

Financial independence isn’t about being a better consumer. It’s about creating the freedom we need to pursue our true calling.

The Secret to Financial Independence

We’re talking about a new approach to money, finance, and investing this week. And as I suggested yesterday, I think we should replace the word “retirement” with “financial independence”.

Retirement as we know it today is a relic of a bygone age. It’s a myth. So instead of planning for retirement, we should plan for financial independence. And a key piece of the puzzle is monthly cash flow. Cash flow is king.

A hefty retirement account may seem like a winning ticket… but it’s simply the lesser, roundabout path to cash flow. And retirement accounts ultimately pit us against the tax code when it comes time to cash in.

Instead of retirement funds, it’s building a steady stream of tax-advantaged income that truly gives us financial independence.

So my suggestion is simple. Let’s move beyond the nest egg. Let’s set our course for financial independence, not retirement.

And here’s the catch—this isn’t achieved by following the typical financial advice. We’re talking about a fundamentally different approach to wealth.

The Myth of Retirement and The Promise of Financial Independence

Most of us have been led to believe in the idea of retirement. It’s the idea that there’s this golden phase of life. A time when we finally hang up our boots, kick back, and enjoy the fruits of our labor.

But, as we discussed yesterday, the world has fundamentally changed. And the traditional vision of retirement is quickly fading with it. We now face a stark new reality.

Today, I want to drill into that reality and introduce a concept that I think makes a lot more sense. Financial independence.

Let’s start with a simple truth. The conventional wisdom of working a lifetime, saving a fraction of your earnings, and hoping for the best isn’t cutting it anymore. The dynamics have shifted dramatically. Inflation, volatile markets, and a fundamentally changed economic landscape have exposed the flaws in traditional retirement planning.

So, what’s the alternative?

Buckle up – we’re journeying beyond the nest egg…

Hey there,

I have a quick pop quiz for you: what’s one of the biggest challenges we’re all facing today? If you said, “information overload,” bingo! You nailed it.

In the good old days, the challenge was a lack of information. We had to go seek it out. Remember those things called libraries?

Nowadays, it’s the exact opposite. We’re all neck-deep in a deluge of information… but much of it is just noise, or worse, junk. And when we’re swimming in a sea of junk, we’re bound to make bad decisions, right?

Well, here’s where it gets interesting. The world as we know it has changed. We’re not heading back to the way things were.

And that raises an important question. When it comes to money and finance, should we keep doing things the way we’ve always done them? Or should we adjust our course? And if so, what should that new direction look like?

These are questions I’ve been wrestling with for years now, and they’ve inspired me to write a new book. It’s titled “Beyond the Nest Egg: How to Be Financially Independent Outside of a Broken System.”

Your Thoughts, Your Capital – The Power of Infinite Banking

What is the most important asset in this world? Banks would argue it’s people, and they are right.

It’s our thoughts, our labor, our ideas that matter. Banks invest in us, expecting that we will provide value, continuously flowing money back to them. Now, isn’t it high time that we started investing in our own value?

Consider this investment opportunity: You provide all the money, and someone else makes all decisions with it. You can’t touch it for about 30 years. You carry all the risks, and you also pay a fee to the person managing it. Doesn’t sound appealing, does it?

Well, guess what? This is the exact deal we make with qualified retirement plans. We take all the risk, yet we bear all manner of restrictions, fees, penalties, and eventually taxes.

It’s time to break free from such a lopsided arrangement. With the Infinite Banking Concept (IBC), you can take control of your financial future, and invest in your own value.

IBC puts you in charge, letting you decide how your money should work for you. It’s not about the balance sheet. It’s about cash flow. It’s about thinking like a bank and acting like one.

Take charge of your financial future today. Check out our Infinite Banking course and learn how to create wealth on your terms. You can get started right here: Infinite Banking Unleashed

-Joe Withrow

The Game Banks Play and How to Win It

Ever wondered how banks make money?

It’s not by magic. It’s by using our money. They pay us a tiny amount of interest, say 2% or less, then lend it out at higher rates – from 7% for a mortgage, 8% for a car loan, 10% for business loans, even 24% for credit cards. All of it, from our pocket! In reality, banks earn a return between 250% and 4000% on the money that we deposit.

And that’s not hyperbole. If the banks pay us 2% and issue loans on top of our deposits at 7%, the temptation is to say they make 5%. But that’s not correct. This is in fact a 250% return. Here’s the calculation: (7 – 2) / 2 = 2.5 (multiply by 100 to get the percentage).

Insane, right? Yet, we all partake in this system, inadvertently making banks richer.

Now, what if you could play the banking game, for your benefit? Sounds intriguing? Enter the Infinite Banking Concept (IBC).

IBC is about regaining control of the banking function. It’s about learning how to put your money in motion, like banks do… and making it work for you. The goal is to emulate the banking process and to create a system where your money continuously flows, earning you uninterrupted compound interest.

It’s time to rethink our thinking and start playing the banking game. But this time, in our favor. It’s about time we invested in our own value – in our own worth. Don’t let banks profit off your hard-earned money. Instead, learn how to be your own bank.

Start your journey with our Infinite Banking Course. It’s designed to guide you on this path and equip you with the skills you need to achieve financial freedom. You can find it right here:

Infinite Banking Unleashed