Alternative Economics™ was first introduced to the public on a local level as a personal system of financial growth and an emerging industry by the National Strategic Investment Corporation (NSIC) in January 2005.

 

Founders of NSIC recognized growing financial disparity in homes on a national level due to inefficient financial planning traditions, a failing social security system and mismanaged or impotent government and corporate retirement programs that overlook many beneficial alternative investment strategies and asset accumulation principles. 

 

This disparity has reached a climax as the public is encouraged to take charge of its own financial future. The challenge to this solution lies in the progressively fast changing economic climate of this country caused by the effects of rapid technology growth among other major changes, events and government spending. The national education system can not keep up with these changes, leaving the public to make financial decisions based on perception and not reality. Financial decisions made with the old or just inaccurate information of perception, yield a less than encouraging gain which extinguishes motivation for savings or investment activity. Not to mention the ever increasing personal debt of most households, decreasing available cash flow to invest. As a result, less than 1% of this nation’s household income is currently being invested in any kind of retirement or savings plan. 

 

Alternative Economics™ is an answer to the call to the American public being shouted by top officials from every political party of the federal government to plan our own financial future. The message is clear, “the government will not be able to support us as we get older”.

 

-      www.saversummit.dol.gov (Secretary of the Department Of Labor)

-      www.nber.org/papers/w12502 (National Bureau of Economic Research)

-      www.ebri.org (Employee Benefit Research Institute)

-      www.asec.org (American Savings Education Council)

 

 

 

 

 

Alternative Economics™ fulfills all three of these objectives. But why is our savings so important to the federal government? The answer is two-fold:

 

 

 

Coupled together, these two effects of the current saving habits of the American people could result in an unrecoverable condition and even a collapse of our national economy.

 

“Left uninformed, ambition is paralyzed by fear of the unknown. Opportunities go unrecognized and our dreams of a prosperous future fade away into excuses.”

 

The why is easy, if you don’t then you’re screwed! Oops, are we supposed to say things like that? Well that’s exactly what is being said by politicians and high ranking public officials to the American public; just not in those words. I don’t normally use words like that but wanted to catch your attention. The fact is if you don’t implement a personal system of financial growth that will provide for your retirement and future health needs, no one else is going to.

 

This nation’s people have been educated to work for a living and save for the future. We have been taught to leave the investing of our savings to those who are more educated and can do better managing our money than we can. The Social Security System, corporate and government pension plans, and of course Financial Planners are examples of this philosophy. We’ve already addressed the failure of the Social Security System as well as corporate and government pension plans. Shortly we will explain why investing in stocks, bonds and mutual funds only and ignoring your additional alternatives is problematic at best. But for now let’s take a moment to focus on the deficiencies of the financial planning industry and the solutions brought by the implementation of a personal system of financial growth based on an education in Alternative Economics™. 

 

According to most Financial Planning Association’s (FPA’s) the financial planning profession was officially born in 1969. This is how most financial planners and FPA’s would describe the industry: 

 

“Financial planning is the process of wisely managing one’s finances to achieve certain goals and dreams, while at the same time helping to negotiate the financial barriers that inevitably arise in every stage of life. The financial planning profession exists to help people make those financial decisions and achieve their life goals.”

 

That sounds fantastic doesn’t it? But let’s take a deeper look at how the financial planning profession has veered from this lofty vow to help us achieve our goals and dreams. 

 

Before we do, I would like to make a short disclaimer. There are exceptions to every rule. Even though the information we are about to disclose to you is accurate there are some individuals in the financial planning industry who truly advise with their clients best interest in mind. Unfortunately, the heredity allowed by the industry’s education and training often limits the effectiveness of their recommended financial plans, still leading to less than desired results despite good intensions. 

 

 

According to the National Strategic Investment Corporation, failure of the traditional financial planning industry to produce enduring economic results for the general public is caused by, but not limited to, five observed deficiencies:

 

1. Financial vehicles such as stocks, bonds, mutual funds, insurance policies and annuities suggested by professionals of the financial planning industry are often chosen based more on the benefit to the financial planner than anticipated gain to the investor. Investments that do not yield a profit to the financial planner are regularly ignored or even spoken against without accurate justification.  

 

2. Special treatment and investment opportunities given to the more affluent (Accredited Investors) leading to an uneven playing field. The Securities and Exchange Commission (SEC) says that an accredited investor is someone who is knowledgeable and sophisticated. Then they proceed to say that you can only be considered knowledgeable and sophisticated if you make $300,000 per year income or have $1,500,000 in assets. (This standard serves only 3% of the nation’s population). Knowledge and sophistication is a function of education? Many financial planners will not even advise or accept as a client someone with less than what it takes to be accredited.

 

3. Traditional financial planning at the public level does not consider major changes or events that impact the activities of large sections of society. These changes or events often have huge effects on the economy that should be considered to determine asset allocation strategies, but are typically left un-mentioned.     

 

4. Most major financial growth principles known to be used by the wealthy, banks and other large companies are almost completely absent from financial planning for the general public. On going, applicable education programs offered to the public to teach financial growth principles, using all available strategies, are almost unheard of. This is evidenced by the need for the Saver Act of 1997 mentioned in the introduction.

 

5. When known general down-turns in the market are expected by financial planners, their clients are often not told to move their investments as they should. On the contrary, they are most often told to, “Just ride it out, it will come back up, remember this is a long term investment!” Motive for this poor advice can be observed by recognizing that financial planners are compensated by moneys under their management despite the benefit to their clients, the investors (YOU).

 

Conventional wisdom is wrong because it is promoted by the people and businesses that profit greatly from our doing what is good for them – not for us. Watch this video produced by the TV news show 60 Minutes as they uncover this truth:

 

 

In the Alternative Economics™ education program, you will learn that one of the elements of a personal system of financial growth is a comprehensive and on-going education process that offers irrefutable alternatives to the traditions we have been brought up to believe. The same traditions that have and will continue to keep us from achieving all that we are capable of if we don’t learn and apply our economic alternatives. This education process is designed to infuse you with the knowledge and sophistication necessary to break our limiting thought processes imposed by our social heredity, allowing us to make decisions from Reality and not Perception. 

 

Conclusion and reason for a Personal System of Financial Growth based on Alternative Economics™…

Alternative Economics™ is the process of establishing and personally managing a personal system of financial growth to not only achieve desired life goals, but to achieve them in shorter time than previously thought possible, without sacrificing lifestyle now, nor taking high risks. 

 

This is accomplished by:

 

1. Breaking the law of financial heredity through accurate insights and education that disrupt conventional thinking with the introduction of irrefutable alternatives.  

 

2. Identifying and employing assets most Americans are unaware they possess, making it possible for anyone to achieve what they desire despite social or economic status in much shorter time than previously thought possible.

 

3. Learning to consciously and consistently apply asset acceleration and growth principles to maximize returns and minimize time necessary to achieve financial goals, without taking unnecessary risks. 

 

4. Using group strength of a large social network to negotiate discounted transactions and services from professionals who understand Alternative Economics™, and other benefits of community strength through numeronics. 

 

5. Reaching beyond the confines of traditional investment options, or what most would consider conventional investing, by engaging in alternative investment strategies.

 

6. Tapping into reliable economic change information resources to assist in determining proper asset allocation, and regularly adjusting investment strategies accordingly. 

 

7. Using creative, private and little known financing options that compliment and maximize results of alternative investment strategies.

 

Congressman Ron Paul of Texas says this about the Perils of Economic Ignorance:

 

“America is facing a perfect economic storm, caused by a federal government that spends, borrows, and prints so much money that our dollars are eroding in value at an alarming rate. Year after year our federal government spends beyond its revenues, prints new money to pay its debts, and borrows hundreds of billions abroad in the form of Treasury obligations that someday must be paid. With too many dollars and debt instruments in circulation, and no political will in Washington to cut spending, we've created a monster. Our perceived prosperity depends on keeping the great debt and credit engine pumping, but the only way to attract new lenders to fuel the engine is higher interest rates. At some point one of two things must happen: either the party in Washington ends, or the supremacy of the dollar as the world's reserve currency ends. It's a sobering thought, but a choice must be made.

 

How did this happen? How did we get to such a state? The answer is found in the nature of politics itself. The truth is that many politicians and voters essentially believe in a free lunch. They believe in a free lunch because they don't understand basic economics, and therefore assume government can spend us into prosperity. This is the fallacy that pervades American politics today.

 

I believe one of the greatest threats facing this nation is the willful economic ignorance of the political class. Many of our elected officials at every level have no understanding of economics whatsoever, yet they wield tremendous power over our economy through taxes, regulations, and countless other costs associated with government. They spend your money with little or no thought given to the economic consequences of their actions. It is indeed a tribute to the American entrepreneurial spirit that we have enjoyed such prosperity over the decades; clearly it is in spite of government policies rather than because of them.

 

I certainly have seen firsthand a great deal of economic ignorance in Congress over the years. Few members pay any attention whatsoever to the Federal Reserve Bank, despite the tremendous impact Fed policy has on their constituents. Even many members of the banking and finance committees have little or no knowledge of monetary policy. Perhaps this is why so many in Congress seem to believe we can all become rich by printing new dollars, or that we can make 2 + 2 = 5 by taking money from some people and giving it to others.

 

We cannot suspend the laws of economics or the principles of human action any more than we can suspend the laws of physics. Yet this is precisely what Congress attempts to do time and time again, no matter how many times history proves them wrong or economists easily demonstrate the harms caused by a certain policy.

 

I strongly recommend that every American acquire some basic knowledge of economics, monetary policy, and the intersection of politics with the economy. No formal classroom is required; a desire to read and learn will suffice. There are countless important books to consider, but the following are an excellent starting point: The Law by Frédéric Bastiat; Economics in One Lesson by Henry Hazlitt; What has Government Done to our Money? by Murray Rothbard; The Road to Serfdom by Friedrich Hayek; and Economics for Real People by Gene Callahan.

If you simply read and comprehend these relatively short texts, you will know far more than most educated people about economics and government. You certainly will develop a far greater understanding of how supposedly benevolent government policies destroy prosperity. If you care about the future of this country, arm yourself with knowledge and fight back against economic ignorance. We disregard economics and history at our own peril.”

 

Having this basic knowledge of economics and government will help you understand the value of the principles of Alternative Economics financially on a personal level and the effects we as an aggregate can have on the health of our nation’s economy.  Through wide spread knowledge and sophistication of the principles of Alternative Economics as well as the application of its methods, politicians will be forced to cater to a different philosophy which demands fiscal responsibility to be elected and remain in office.  This is how the people of this country can control our individual financial futures and once again steer our government into safe harbor and avoid the impending economic storm. 

Without the application of the principles of Alternative Economics™ and a personal system of financial growth, we are sunk!!! Is that a better word?

 

 

To convey what Alternative Economics™ is, let’s start by explaining what it’s not.

Alternative Economics™ is not about stocks, bonds or mutual funds. Our corporate retirement plans, pensions plans, 401ks and IRAs have been invested primarily in stocks, bonds and mutual funds. Let’s face it, we’ve all seen or experienced the poor performance of these traditional investment classes. We’ll talk in more detail in another chapter about why we believe these investments are yielding such disappointing results. We’ll also discuss how Alternative Economics™ will solve this problem on a personal level for anyone who actively applies the methods and principles suggested.  But for now let’s keep the conversation a little broader in scope. 

 

As a country, we’ve lost faith in these investment tools and are no longer motivated to save or plan for the future in the manner that we used to. This is evidenced by the fact that Americans save or invest less than 1% of our income. Some believe this is just because we are less disciplined today or we just don’t care anymore. Suggestions have been made that we are entering a new economic era lead by an irresponsible generation with an immediate gratification mindset. These explanations blame this depleted savings habit of our nation on the actions of the people and not the cause for these actions or lack thereof.  

 

The American people of this generation are not stupid; we are simply reacting to our common sense…Why engage in a plan that we know is failing for so many? After all, discipline comes from motivation and motivation comes from faith in an action that will yield a desired result. We just don’t believe anymore in the traditional financial plan which relies (for the most part) on the performance of stocks, bonds and mutual funds. What we need are better alternatives.   

 

Alternative Economics™ is NOT reliant on your Frugality

Alternative Economics™ is also not reliant on your frugality. Most Americans are under the perception that growing assets and/or investing are only possible at the price of significant lifestyle sacrifice. It’s no wonder people think this way.  Listen to what Federal Reserve Chairman Ben Bernanke was quoted saying:

 

 

 

The reality of this perception left to us by the media, our political leaders and our heredity, makes more understandable the lack of motivation Americans have to save or invest in a conventional manner. Think about it. Who in their right mind would be motivated by this financial plan?:

 

 

With that kind of outlook, no wonder we are more apt to say, “Spend it while you can enjoy it and hope for the best at retirement.” Even though that’s not a plan it makes more sense than the traditional option described above.

 

Alternative Economics™ deals with the necessity of Asset Accumulation with the question of feasibility but does not necessitate frugality. The difference will be explained later.

 

Alternative Economics™ is NOT using corporate or government managed retirement programs

Finally, Alternative Economics™ is not reliant on corporate managed 401k programs, pension plans or government managed retirement programs such as Social Security.  

 

 

The Social Security system has predicted its own bankruptcy date and publishes it in its own report to the American people every year. Most of us have, at some time in our working life, received the yearly Social Security statement. If you are like the majority of people, when you finally take the time to look at the document you immediately turn to the 2^nd and 3^rd pages which outlines your personal benefits if you retire, are injured or die. This year take the time to read the first page. On it you will find the details of when (not if) the Social Security system will be bankrupt. Specifically, it’s in the paragraph on the upper right hand side of the cover page. When you read it you will understand why the government is so emphatically encouraging us all to make financial plans for retirement that do not include government or corporate managed programs. We must form our own personal system of financial growth.

 

 

Alternative Economics™ is a personal system of financial growth education program designed to reveal hidden assets and apply them to alternative investment strategies using personal money rules that engage all four asset acceleration principles through three financial growth stages. 

 

It is your own personal economic bailout plan.

 

Let’s break that down:

 

- Personal system of financial growth

- Reveal hidden assets

- Alternative investment strategies

- Money Rules

- Four asset acceleration principles

- Three financial growth stages

 

The rest of this book is broken down into these six elements of Alternative Economic™.  Download a free copy of the entire book at www.alternativeeconomics.com.