The “Bank of You” is one of the most popular...and successful strategies that Elevation Group members have been using to secure their financial future.
But there are also some concerns about how the “Bank of You” will hold up if we have another 2008-like economic crisis...or worse.
Here’s a great question from an EVG member about what will happen if the US Dollar tanks:
Regarding the Bank of You, Paul Haarman said it takes around 5-7 years to break even, and after that is when things start to take off. But the Lesson #2 video was made back in 2010. So at this point in time, with our fiat currency heading ever more towards to the brink, is it advisable for anyone to start investing in the Bank of You? Will the US Dollar even be around in another 5-7 years? Thanks in advance for your help on this question.
Mary D.Paul is the EVG expert on the “Bank of You,” and he says he gets this question a lot.
But his answer is a little more complex than a simple “yes” or “no.”
Here’s why:
Everyone’s Concept of Financial Collapse is Different
When some people think of financial collapse, they envision total mayhem...
A kind of post-nuclear holocaust where everyone wanders around aimlessly...
Abandoned ghost-town cities. Smoking piles of debris littering the landscape...
People clad in dirty rags ... picking their way through heaps of junk for a morsel of food.
Is that how you see it?
If so, then realize that no investment will thrive in that reality.
Not even gold.
In that scenario, mere survival will be the only thing that matters.
But that is NOT how Paul envisions the coming financial collapse.
Why?
Well, none of the biggest financial collapses in our world’s recent (or past) history have ever looked like that.
Yes, there is always a temporary chaos as wealth transfers hands.
And yes, there are tough times for the masses ... sometimes for extended periods of time.
But in the end, a new order is always established ... and in the event of a currency collapse, a NEW currency is always formed.
Like it or not, we will most likely have to live with some form of fiat currency during our lifetime.
So even if the present form of your country’s currency collapses, there will be a new currency that takes its place.
At that point you’ll get something in exchange for your old money.
But that’s assuming a total financial collapse.
Paul feels it’s more likely that we’ll get high inflation rather than total collapse. In that case...
Interest Rates Will Move Up With Inflation
The second thing to remember is that interest rates and inflation generally go up in lock-step.
So if we start seeing 10% annual inflation, the interest rate you earn in your Bank of You will also go up.
Some readers may remember the high inflation of the late 1970’s into the early 1980’s.
Back then you could earn 17% on a one–year Certificate of Deposit (CD).
Right now, inflation is at 2.5% and you can earn around 10% in a Bank of You.
That’s a 7% spread.
Once inflation hits 10%, you should easily be able to earn up to 17% in your “Bank of You.”
Which brings us to the final point...
The “Bank of You” Protects You During Inflation or Deflation
A properly set up “Bank of You” will protect you from future high inflation...
...but it can also save you if we get deflation.
We’ve already seen how deflation could be part of our future in a recent newsletter.
Most investments work well only in one scenario or the other. Either in deflation or inflation.
In fact, many investments will completely crash if used in the wrong situation.
Not the “Bank of You.”
Properly set up, a “Bank of You” steadily increases your wealth during either scenario.
It works that way because it has the income-producing abilities of an inflation hedge, and the cash-like qualities of a deflation hedge.
Final Thoughts
No one can say with 100% certainty what the future holds.
Will there be high inflation? All signs point to that.
Will there be deflation? At least one realistic scenario exists where that could be our fate.
With most investments, you have to make an educated guess which scenario is coming.
At EVG, we’re betting more heavily on the inflation side.
But with a “Bank of You,” you’ll be protected either way.
It won’t matter if the US Dollar tanks ... or even disappears.
Frankly, you’ll never get the timing of any investment absolutely perfect.
What’s more important is understanding the Wealth Cycle we are in and how that will affect your long-term investment goals.
Once you are convinced in your own mind that a particular investment makes sense, the final step is actually committing to it...pulling the trigger and making the investment.
Now is a good time to review Lesson 1 on wealth cycles and Lesson 2 on the Bank of You.
If you have specific questions about setting up your own “Bank of You,” give Paul a call.
As a member, you have access to his contact information on the Resource Page in the members area.
This article is reprinted courtesy of The Elevation Group. To find out more, please visit their website at:http://theelevationgroup.com
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