Financial Institutions are only intermediaries between us and our money. In order for them to make a profit, they must convince us to do these four things.
Financial Strategies promoted by Financial Institutions.
Compound Interest
Dollar Cost Averaging
Term or Group Life Insurance
Payroll deducted qualified plans
Low deductibles on insurance
Uniformed Gift to Minors Accounts
Non deductible loans, credit cards, etc.
Mortgages for less than thirty years
Prepaying mortgages by accelerating payments
Municipal or Zero-Coupon Bonds
The examples above are promoted by financial institutions, their agents, brokers or representatives as winning financial strategies for their customers. Only through a personal financial engineering evaluation will these strategies be proven to be effective or ineffective.
