I present to you Publication No.28 of The Weekly Tidbit. I'm confident you'll be exposed to a wealth of helpful information as you continue to grow and develop in your understanding of what is best for you and your personal, family, and financial situation.

Go Tidbits... Go Dinar!

Dinar Daddy

Your Future...

The better part of last week was dedicated to reflecting on the lessons I've learned in 2011, and preparing a new vision and goals for 2012, both personally and in business... something I do every single year.

I hope you've had a chance to do the same. It's a powerful way to start the New Year and ensure you're headed in the right direction.

As you know, it's the planning and preparation you do today that will determine your tomorrow.

Speaking of your future...

I want you to imagine its one year from today, January of 2013...

First of all, you're really happy because despite the Mayan calendar ending, Earth was not ravaged by a smorgasbord of cataclysmic astronomical events, so you're still alive and well. (Yay!)

But you're also celebrating because ALL of the financial goals you set out to achieve when we entered 2012, were achieved.

You did it! You just had your best year ever...

Feels pretty good right?

Well, it's not as far-fetched as you may think. In fact, it's closer to becoming your reality than you might have imagined, as you'll soon see...

Here's the deal...

My friend, Kris Krohn and REIC, has spent the better part of five years assembling a "Dream Team" and one of the country’s leading real estate investing power systems!

The Good news for you...

You can put this power team to work for you in 2012… and beyond!  REIC provided just under 500 homes this year to investors. Whether you are experienced or brand new to real estate, REIC assists you in transferring your money tax and penalty free into some of the nation’s best cash flowing real estate in the hottest markets. REIC purchases its average home right now at half of the replacement cost providing both predictability, and security.

The other benefit of an established power team is the buying power to get not only the best-discounted deals, but also to ensure the best management. Think about it, REIC has many property managers handling hundreds of our clients’ homes. These management companies must do a good job to retain our trust and our clients’ business.

To learn more about REIC and The Strait Path to Real Estate Wealth and to request YOUR FREE - PERSONAL 10 YEAR GAME PLAN… CLICK HERE

Get Kris’s Free Book: Kris Krohn, President and Founder of REIC Global, and Author of “The Strait Path to Real Estate Wealth”

What’s Life All About?

By David Kauwe

This question has been asked for eons.  Of course, the one I’m talking about is Life Insurance.

I’d like to give you some basics today I’ll call Life Insurance 101.

There are basically two types of life insurance:  Term and Permanent


Term – This type of Life Insurance is purchased to provide a temporary need for protection against the death of an individual. It is the least expensive type of coverage in the short term because of it’s temporary nature.  Should one need protection at the later stages of life, it could become more expensive than a permanent plan would have been as the individual approaches the age to which they actuarially are more likely to reach mortality.


Basic Term Policies:


  • Annual Renewable Term – The cost is renewed on an annual basis.


  • 5 yr., 10 yr., 20 yr., 30 yr. Term – The annual cost is locked in based on the specific term chosen, ie., every 5 years, 10 years etc.


Permanent – This type of Life Insurance is purchased to provide a permanent need for protection against the death of an individual.  It’s costs are higher in the short term than Term, however, as the individual grows older and the chances of reaching mortality increases, the excess premiums paid in earlier years have been earning monies in the contract which offset the increase in mortality costs the insurance company incurs.

Types of Permanent Policies:


  • Whole Life – Premiums are paid throughout the whole life of the individual or a non-forfeiture option is chosen if payments stop.

Excess premiums above the cost of insurance are invested by the company and accumulate tax-deferred within the contract.  These policies can also be paid up earlier such as paid up in 10, 20 years or Age 65.


  • Universal Life – Premiums and coverages are flexible and may be

changed, stopped and restarted throughout the life of the Insured.

Excess premiums above the cost of insurance are invested by the

company and accumulate tax-deferred within the contract.

  • Variable Life – Premiums and coverages are also flexible and may be changed, stopped and restarted throughout the life of the Insured.  Excess premiums above the cost of insurance are invested by the company at your direction within sub-accounts within the policy.


  • Single Premium Life – Premiums are paid once and the policy is paid up for life.


  • Indexed Life Insurance - In recent years, Indexed Life Insurance has come on the scene.  It is a variation of permanent insurance.  As mentioned before with Universal Life Insurance, the company is responsible for the investment choices.  With Variable Life Insurance the client is responsible for the investment choices.  The opportunity to receive a better return with the Variable Product is enticing but in a down market it can be very discouraging.  Indexed Life Insurance has the ability to receive gains in an up market, but has the protection against any down side of the market. The gains in this type of contract is tied to an index which is measured against the market but not directly invested in the market.  Indices such as the Dow Jones Industrials, S & P 500, Euro Stoxx 50, Hang Seng Index are measured and as those indices increase the percentage increases are calculated and credited to the insurance contracts.  If the index decreases, any gains are locked in and no reductions in the accumulation accounts are made.  So you receive all the benefits of an up market and none of the penalties of a down market with an Indexed Life Insurance Contract.


Another important feature of Permanent Life Insurance is the tax treatment it has enjoyed since it’s inception.


The Permanent Life Insurance Contract is one of the last great tax shelters because of the following tax benefits:


  • All premiums paid into the contract earn interest which is

tax-deferred during it’s accumulation phase.


  • All monies, principal and interest when properly structured then can

be withdrawn on a Tax-Free basis.


  • At the death of the Insured, the benefit paid to the beneficiaries is

paid Income Tax-Free.  Again if properly structured it can also be

Estate Tax Free.


So Life Insurance should be a very important part of your overall planning to not only provide for your heirs but to take advantage of all the wonderful tax benefits of Life Insurance.


As Always Mahalo and Go RV!


Hawaiian Dave


David A. Kauwe CLU ChFC LUTCF is the Owner of Triangle Estate Planners located in Durham, NC. dave@hawaiiandaves.com or at (919) 698-8832 cell.

Irrevocable Trusts

By Paul Lydolph

Most people know about Trusts but not necessarily the distinction between types of Trusts and how they operate.  The Irrevocable Trust used to be the preferred method of operation for businesses in this country.  It has all the benefits of a typical Revocable Trust, but no incidence of ownership for the Trustor.  The summary below should help.  In addition, I have attached the beginning of my Irrevocable Trust so that you can get a feel for how it operates.

Irrevocable Trust

For those of you who wish to remove the proceed of your Dinar investment from your Estate, and Irrevocable Trust may be an ideal solution.

An irrevocable trust is simply a type of trust that can't be changed after the agreement has been signed.  The assets within the Trust are managed for the beneficiaries and cannot be removed for the benefit of the person(s) originally finding the Trust.  In addition, title transfers to the trust – away from the party dedicating the asset to the Trust.  The Trust can also take title directly.

Take my personal experience as an example.  I bought a brand new Harley-Davidson in the name of our revocable Trust.  If I wanted to sell the motorcycle, I don’t have the authority.  The Trustee (father-in-law) would have to decide to sell the bike – and could do so without my consent.  The funds from a sale, probably at or around $ 18,000, would be the property of the Trust and must be managed for the benefit of my daughters.  The initial $ 22,000 contributed to the Trust from the purchase of the vehicle will never be part of personal estate for tax or probate purposes.

The main reason for setting up an irrevocable trust is for estate and tax considerations.  The benefit of this type of trust for estate assets is that it removes all incidents of ownership, effectively removing the trust's assets from the grantor's taxable estate.  The grantor is also relieved of the tax liability on the income generated by the assets.  While the tax rules will vary between jurisdictions, in most cases, the grantor can't receive these benefits if he or she is the trustee of the trust.

The assets held in the trust can include, but are not limited to, a business, investment assets, cash and life insurance policies.  Irrevocable trusts can take on many forms and be used to accomplish a variety of estate planning goals:

  • Estate Tax Reduction

Irrevocable trusts, such as Irrevocable Life Insurance Trusts, are commonly used to remove the value of property from a person’s estate so that the property can't be taxed when the person dies.  In other words, the person who transfers assets into an irrevocable trust is giving over those assets to the trustee and beneficiaries of the trust so that the person no longer owns the assets.  Thus, if the person no longer owns the assets, then they can't be taxed when the person later dies.

  • Asset Protection

Another common use for an irrevocable trust is to provide asset protection for the Trustmaker and the Trustmaker's family.  This works in the same way that an irrevocable trust can be used to reduce estate taxes - by placing assets into an irrevocable trust, the Trustmaker is giving up complete control over, and access to, the trust assets and, therefore, the trust assets can't be reached by a creditor of the Trustmaker.  However, the Trustmaker's family can be the beneficiaries of the irrevocable trust, thereby still providing the family with financial support, but outside of the reach of creditors.

There are many disadvantages to the Irrevocable Trust.  Among the various complications: 1)      Property must be transferred, so there is initial cost in setting up the trust. 2)      You lose all control over the property with most irrevocable trusts. 3)      It requires annual fiduciary accounting and possible tax returns. 4)      It may require payment of annual trustee fees. 5)      There may be fees at the time of trust termination. 6)      You can't change your mind and get the property back.

For more information on this and other trusts, feel free to contact Paul at legal@treasuryvault.com, or contact Treasury Vault at www.treasuryvault.com.

Your Silver Pacifier

By Bix Weir

There is massive fear in the silver market. Every time the price of silver moves down a tick the sweat begins to bead up on the brows of silver investors and the dark FEAR of investing doubt fills their thoughts. "Oh my God, have I made the wrong decision again?"..."What was I thinking buying silver when it was so close to it's all time high price?"..."Maybe I should sell some silver to take some of my winnings off the table". Ultimately it is FEAR and not GREED that drives the big moves in price of all investments and right now FEAR is the motivator for silver investors. But very soon that same FEAR will be the driver of silver blasting off to the moon!

If you are strong enough to remove the FEAR from your mindset the picture of what is happening to the price of silver is much more clear. As a matter of fact, we have seen this price action for the last 10 years over and over and over again. Silver has risen and fallen to extremes consistently all the way up. The mainstream media loves to point out how silver is "much more volatile" than gold and is a much riskier investment. Of course they never give reasons as to why a commodity with very, very stable mine production and stable industrial consumption is so volatile. They are hoping that you are not smart enough to ask the important questions...like is the silver market rigged? And if so how is it done, why are they doing it and when will it end?

For those who follow my work at RoadtoRoota.com you understand the answers to these questions and are not swayed by the volatility of silver. For those unfamiliar with the Road to Roota Theory I'd suggest you read this article that explains it but FAIR WARNING...this may shatter your illusions of "Free Markets" and how the world is SUPPOSED to work!

Back to silver. I'd like to address the four questions I posed above:

QUESTION #1: Is the Silver market rigged?

ANSWER: YES. Everyday and every trade the silver market is "controlled" and has been for at least the last 40 years. NOBODY knows the true Fair Market Value of silver anymore so all prices for silver are currently irrelevant.

QUESTION #2: How is it done?

ANSWER: The silver market rigging is accomplished by running computer market trading programs to "steer" the price of silver up and down flushing out weak hands on the price slams and covering short positions that were previously put in place to cap the rising price. These silver "trades" have little to do with physical silver but everything to do with paper derivatives of silver. There is no floor or limit to where "the controllers" can place the price of silver.

QUESTION #3: Why are they doing it?

ANSWER: To save the unbacked fiat monetary system. Unless you control the prices of all commodities, especially the monetary metals, an unbacked paper or electronic monetary system will fail in rapid fashion. As such, when the US went off the Gold Standard in the early 1970's, Alan Greenspan wrote and implemented the original computer market rigging models to PROLONG the acceptance of unbacked fiat money. This was the implementation of the 1960's economic theory called "On The Road to The Golden Age" by Bertil Näslund which dealt with Nobel Prize winner E. Phelps's "Golden Rule Theory" of equal capital accumulation. The ultimate conclusion of this theory was to print as much unbacked currency as possible for as long as possible to reap all the rewards before returning to the discipline of a Gold Standard.

QUESTION #4: When will it end?

ANSWER: There's the $100 Trillion question which actually has a very reasonable answer...The market rigging will end when the benefits of printing unbacked fiat money no longer outweigh the costs. The United States has hit that point as the "Bad Guy" banksters who abuse the system and have practically taken control of the country are in the process of transferring all that "VIRTUAL WEALTH" into their own pockets. Of course in the end THEY are the fools for believing in their own flawed monetary system where paper and electronic blips equals REAL WEALTH! The first attempt at ending the GAME was thwarted by the Bankters in 2008 but don't despair... The next attempt at crashing the system is right around the corner and we have made SURE that they will not escape this time.

Those are the answers to those 4 very big questions. As for what will happen to the price of silver during the transition to a gold and silver backed monetary system...IT CAN GO ANYWHERE! But in the end it will be FEAR of losing all your virtual wealth that will drive the price of silver to the moon.

So during these times of turmoil in silver it is best to NOT LOOK AT PRICE but COUNT YOUR OUNCES and remember WHY YOU BOUGHT IN THE FIRST PLACE...

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