203: Profiting Through the Only Guarantee in Life

A few days ago we had the worst single day loss in US stock market history. The next day we had the single best day seen by the Dow Jones Industrial average in 80 years. I have no idea what kind of volatility there will be between the time I write this email and when you actually read it but it's kind of ridiculous. Don't you think? This volatility is exactly why I have stayed away from stocks throughout my adult life. I just don't get it. How does a fiscal stimulus help the stock market if the entire country is, for all practical purposes, unemployed? The economy is frozen and there will be a deep recession. How long it lasts is unclear but stocks going up in value right now makes no sense at all. The word that best describes the economy right now is uncertain. As an investor, it's the worst feeling you can have. If you feel uncertain right now, remember what this feels like and make sure you feel better about your portfolio next time something like this happens—which it will. As I have made clear several times before, I hedge uncertainty through contractual agreements that I have with life insurance companies that have paid out consistently through the Great Depression, multiple World Wars, and bank failures. Cash-value life insurance policies like Wealth Formula Banking help me sleep well at night. We spent a lot of time on this concept last week and, if you are not sold on getting a policy yourself, that's fine. I just want you to understand why I think it's so valuable and make sure you really understand it. This week, I want to give you another way that you can get exposure to this kind of hyperstable asset. You see, you can also get exposure to life insurance company level stability by purchasing other people's life insurance policies. If you've never heard of this strategy, I'm not surprised. It's not something most retail investors know about. Meanwhile, Warren Buffet buys $600 million/year of these things and there's a half billion dollars worth of them on Bill Gates' balance sheet. Curious? If so, make sure to listen to this week's episode of Wealth Formula Podcast!