Good Banking Is Not Entertainment

The difference in the investments a mutual insurance company makes for us versus the rest of the securities world is that stocks are traded for speculative reasons, for increases in their price. The high-value corporate bond market is traded as value itself—we don’t hope for bonds to go up, we expect them to pay what they told us they were going to pay.  It is this conservative approach that has led to the insurance industry’s unmatched 100-year plus record of consistent financial success.

I have mentioned the 1946 film “It’s a Wonderful Life” elsewhere.  George (Jimmy Stewart), in order to save his loan bank, says “I have $500 in my life insurance policy”.  That means, in today’s Federal Reserve Notes (dollars) that he had access to over $6,700.  Can you imagine?  Today’s crony banks also know that the insurance industry is the safest place to store money—over one-half of all banks have policies as of 2016. So if wealthy families, the banks, and big industry are all using life insurance as a safe and secure store and growth mechanism for wealth why can’t you?

But you will never hear about this from the talking heads on CNBC and the other financial entertainers. Because there are no exciting booms and skyrocketing values…and there are no dramatic crashes. It’s just life insurance. Too staid, boring, conservative, safe, and reliable to make headlines for these sideshow hucksters—those who favor the actions of the Federal Reserve and government intervention destroying the free market. They’d rather have drama than security.  They’d rather you risk losing everything you’ve ever worked for so they can have better ratings.

So who do you want to listen to?  Your own good sense, or that noise?