Taxation Without Representation. How it Affects Us Today.

Your Personal Bank

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The primary cause of the Revolutionary War was taxation without representation. Today we have a government that taxes us then sends billions of dollars to other countries, many who hate us. Did you vote for this? Do you support this? Most American citizens do not. The border has been open for the past 4 years. Most Americans want a secure border. The recent election proved this. The government has been involved in endless wars for decades. Most Americans are against this, yet the majority of our representatives vote in favor of additional funding. Do you feel represented? Most Americans do not. The recent election provides hope for a smaller and more efficient government. If this happens, it will likely be the first time in human history a government voluntarily reduces its size and power. The establishment will not give up power easily. They have been taking advantage of the situation for a long time.

Some of the problems we have as a country can be fixed rather quickly. The border can be closed. Illegals can be deported. We can stop funding other countries and supporting forever wars.

Other problems will take more time. You don’t pay down $36T of debt overnight. Even if the Trump administration does everything right financially and Elon and Vivek with DOGE reduce waste and increase efficiency, it may be years before the debt is reduced to healthy manageable levels.

What should we expect in 2025 and beyond? The longer-term future has the potential to be bright. We have some challenges to overcome over the next year or so before we get there. This will likely create volatility. Blackrock, Goldman Sachs, JP Morgan, and Vanguard analysts all predict S&P 500 index returns will average 3-5% annually for the next decade. If the analysts are correct, Your Personal Bank dividends, annuities, and guaranteed lifetime income will all outperform the S&P 500 over the next decade without market risk and tax-favored. Many financial experts are calling this the "golden age" of fixed investments. Even if the Trump administration does everything right, some problems will take a while to fix. Debt is a major challenge.

Record levels of debt requires record selling of bonds. This pushes bond interest rates higher.

Until the government starts paying down debt, bond interest rates will remain elevated.

At the same time, the Federal Reserve is lowering borrowing costs by reducing interest rates.

This creates an opportunity.

Your Personal Bank allows you to earn dividends (likely increasing) while accessing funds to pay off debt, purchase items, or invest in assets.

If dividends are higher than the borrowing costs, you keep the difference. This creates positive cash flow (positive arbitrage) on your money.

We are likely headed to a historical positive arbitrage scenario.

Historically, positive arbitrage has been available 24 of the past 28 years. The other 4 years the dividends and borrowing costs were similar. The average annual positive arbitrage was 2-3%. This is interest you earn on money you spent or allocated elsewhere!

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