Site 83   Economic Sanity ---       How and Where to Invest the Trust's Money  

 

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How and Where to Invest the Trust's Money

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The TLC-Life-Center Team is proposing the combination of several factors.   

First is creation of your Mutual Support Team.     

Second is the creation of a financial trust similar to those already in use by the worlds  wealthiest families.     (See page 3)

Third is to design that trust in a special manner based on the original retirement funding concept that was supposed to become Social Security.   (See page 3)

Fourth is to create the trust with a  management and control system that insures proper function and asset protection.     (See page 6)

Fifth is to actually physically create the trust structure.      (See page 6)

Sixth is to fund the trusts.    This is where cooperation is essential.   Why?  Because relative to the wealthy investors,  most people have only a small amount of money to invest .   The advantage of working as a team is that the combining of assets allows the beneficiaries to participate in projects that they could never do on their own as individuals.    

Another significant advantage is that larger projects are often significantly more profitable than smaller ones.   Each mutual-support community (M.S.C.) will determine what money's are available from the individual members and then assess the best collective use of that money.   As the project evolves, the TLC-Life-Center Team will have people available to act as consultants regarding how and where to invest the trust's assets.  

Regarding the investment moneys held in the trust, the trust holder can specify the his heirs can withdraw the initial  investment money or he/she may specify that the heirs may withdraw only the profits from the investment.    

Seventh is to to have the trust's assets managed by professional managers.   Professional management is suggested for several reasons.  

First, because professional management will raise the level of safety for the capital invested.   

Second, because professional management will significantly raise the rate of return.   Returns of twelve to eighteen percent are normal a returns of thirty percent are very common for wealthy families who hire professional investors to work directly for them.   

Third,  you can't trust the company you work for or anybody not under your ability to fire to have control of your retirement money.  

Fourth, unless you are a professional investor, you don't know what you are doing in the financial investment world.   If you needed an attorney or a doctor, you wouldn't listen to a guy on TV telling  how to handle your legal or medical issues, and then go on your own to solve your own  problem.  

The vast majority of those who do have financial  investments, manage those assets in one or the other of two ways.   The first group turns control of their assets over to some, so-called expert who's interest is first and foremost himself.   The second category consists of the non-professionals who manage their own assets.   In either case the risks are rather high, unless, of course, you, yourself, are trained in investment management.   

As the retirement trust fund project evolves, the TLC-Life-Center Team will, with the assistance of the already established trusts, create a trust management organization that is owned and/or controlled by an association of beneficiaries.   The purpose of this investment organization will be to insure that the beneficiaries are no longer be at the mercy of the wolves in the financial industry.   

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How and Where to Invest the Trust's Money

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The TLC-Life-Center Team recommends that the trusts diversify their investments and focus primarily on investments  in hard assets such as real estate.   Investments in money-valued assets such as the stock market are extremely risky, particularly at this time (2008) while the country is being run by "Resident" Bush & Company.    As your ancestors found out in 1929,  stock market assets can simply disappear in less than a day.   

Where Is the Value?   Stocks and many other paper assets such as mutual finds (which are actually a collection of stocks, bonds, and/or other investment securities) and  the dollar bills in your wallet, are assets with zero intrinsic value.    In and of themselves, they are all but worthless.    Their value is only in the promises to pay that they represent.   Technically, an investment is a way for people to store goods and services for later use.    If you store your future goods and services in the form of a promise to pay and the promise is not kept, you lose your future goods and services.   Hard assets are a much wiser investment.   

Two Investment Examples:   One might think that the founder of the McDonalds restaurant chain decided to go into in the business of selling hamburgers and related food items.   Actually, the McDonalds corporation is in the real estate business.   The Corporation has vast real estate holdings with guaranteed tenants.   That real estate produces huge profits.   It's the Franchisees who are in the hamburger-selling business.   

Home Savings was another example of wise, real estate investments.   For years, the corporations agents would look for and  find  prime real estate locations in a growing communities, buy the property,  build a relatively small, very economical building on the property, and use the building as a storefront for their banking business.   The banking business (a guaranteed tenant) paid for the cost of maintaining the real estate -- (building maintenance, taxes etc.)   As property values climbed,  the net worth of the corporation climbed with it.

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The assets held by the individually owned and controlled,  mutual-support trusts will, when focused collectively, eventually have the power to literally buy and/or control even the wealthiest corporations on the planet.²   Just like a redwood tree that grows from a seed the size of a grain of rice  into a thirty-seven ton tree, the financial seeds the The TLC-Life-Center Team has planted will slowly grow into an entire, financial forest.   

And of course, no single person can do this on his/her own.   Fortunately, cooperative efforts among groups of individuals aimed at a common goal can.    The collective financial power of hundreds of privately owned and controlled trusts will replace what Social Security was supposed to be. **r2-1

The next step is to to explain the concept and to show, by way of example, how it works.   The example and as the point of focus is,  "How to create  dependable and fully funded retirement funds."  

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Continued  on --  Page 3 

Protecting Your Retirement funds

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     rt-0  Concept Summary     

    rt-1  Creating Mutual Support Communities  

    rt-2  How and Where to Invest the Trust's Money     <-- You are here.  

     rt-3  Protecting Your Retirement funds

    rt-4  Some Basic Economics

    rt-5  Trust Fund Details

    rt-6 Recommended Trust Structure

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Site 83  --  Economic  Sanity 101  .com

Page  --  rt-2 How and Where to Invest the Trust's Money

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How and Where to  Invest the Trust's Money-83-EconomicSanity101.com

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Notes and References

**r2-1   The original retirement funding concept that was supposed to become Social Security.  
http://www.EconomicSanity101.com/
Rt-3-Protecting-retirement-funds.html#RetirementFunding
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