I have a “client” who is 79 years old. They have done exactly what I “advised” or taught them about cash value life insurance. With the coronavirus they know their portfolio will fully recovery but maybe not before they are dead and gone. They don’t care.

They practice the volatility buffer strategy with their personal economy that includes equities, bonds, real estate, cash and life insurance. They chose this strategy because they knew something would happen. They’ve been alive long enough to know that something always happens… and to them it seems something happens on a regular basis.

Back in 2008 when I helped build Personal Econcomics Group in Dallas, Austin and San Antonio I was presented with a referral from a long standing client who wanted to “show these people they were doing it wrong”.

“These people” were mired in “bad” debt and wanted to retire in 2008. They were in their late 60s and had enough with the toil and trouble. They were done but didn’t know how to pull the trigger on the their retirement.

How do you retire with debt? It’s easy. It’s the same as working for a living with the same bills but when you pull the retirement trigger you’re not working and still have the same bills.

I showed them how they could retire and pay off their debt in five years with a leveraged asset strategy then be set for life with a guaranteed income from their savings, investment portfolio and their shiny new life insurance policies. The keystone to the whole deal was the life insurance. If they didn’t have full human life value on each other they would need to eat cat food at the end of their life or worse…

Now that they have this strategy in place they now know they will never need to worry about income or money for the rest of their life, even with the covid. They didn’t freak out and sell their portfolio at a loss and they are now in a better financial position then before the covid hit.

The volatility buffer strategy they choose “insured” their portfolio against substantial losses because they had a cash income from their life insurance.

How did they get cash from their life insurance? They put it in their policies because that’s how easy it is.

In the last few months I’ve known several intelligent people who have sold at a loss only to see the market come roaring back as they are sitting in cash and scared to pull the trigger to get back in… and the reason they do this is because they have no alternative. They don’t have a strategy. They have their eggs in one volatile basket with no way to insure themselves from the downside like a pandemic, terrorism, stupid tweets or worse – a war that is not officially a war.

The strategy my clients have GUARANTEES INCOME without sacrificing lifestyle. It requires a complete overhaul and reorganization of assets, liabilities and cash flow. If you can’t fathom that then don’t bother because it only works when you do it ALL THE WAY, NOT THE HALF ASS WAY.

First thing to do is make sure you have full human life insurance coverage in at least term insurance – don’t even consider universal life as any type of coverage because it’s total bullshit. Universal life is a scam if you’re healthy and wealthy – don’t buy that crap!

Second, adjust your investment portfolio. Use something like Personal Capital or some robo advisor. There is no human that can design portfolios the way an algo can. Stop using a “guy”. You don’t need them and they don’t help. You are only making them money not you making money.

Third, take all your assets and leverage them. Yes… go to the bank and get cash for the assets or just sell them outright if they don’t produce a positive alpha for your overall personal economy… if you don’t know what positive alpha is then you don’t know what a true asset really is.

Sidebar: STOP. Don’t even think about the tax implications because in the end the only two things that we know for sure is death and taxes. Blow out the tax man this year! Stop deferring the tax just to pay at higher rates because the last 4 trillion bucks that Jerome Powell just printed will be taken from you sooner, rather than later.

Fourth, with the cash, interest and taxes you’ve saved from leveraging your assets PLUNK it all into as many life insurance policies as possible.


If you’re 60 years old or older and you don’t have a strategy or system that gives you solace when the market take a shit all over your future then you need someone like me to set you straight. The last thing you should do is sell out. The best you can do is to use the income from the other pocket. The worst part is that most of you only have one pocket to dip into.

Poor bastards.

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