About Mark Pace

T. Mark Pace

When there is an immediate need for cash at the time of someone’s death, it has been my experience that life insurance, when properly acquired and managed, is one of the best tools ever invented for the creation and transfer of wealth. However, life insurance is rarely acquired properly and, because it is mistakenly assumed to be a "buy and hold" asset, it is never managed. The resulting financial disasters are far too frequent and completely avoidable.

If you would like to learn more about any Pig-in-a-Poke blog posts or discuss any other life insurance issues, contact T. Mark Pace at Mark@objectivereview.com


Subscribe to Pace's Pig-in-a-Poke Blog

Email Newsletter icon, E-mail Newsletter icon, Email List icon, E-mail List icon Enter your email to subscribe
For Email Marketing you can trust

Pace’s Pig-in-a-Poke

About Pace’s Pig-in-a-Poke

Pace’s Pig-in-a-Poke, provides an arena for sharing the four great passions in my life. My three foundational passions are:

  1. Invest in yourself first;
  2. The genius in all of us, and;
  3. We can all live a long healthy life.

These three support my life work and my fourth passion; LIPM™ (Life Insurance Property Management).

As the blog title suggests, my focus is on debunking all of the myths, misuse, and muddled thinking that has accumulated in the life insurance industry. And, from time to time, I will go outside of the specific world of life insurance and share my views on my other three passions.

I hope you find my blog worthy of your attention, informative, and occasionally inspirational. I welcome your comments, questions and suggestions.

Mark Pace

What is compounding self-interest and why should you care?

The Poke

Every wise investor knows and loves the miracle of compounding interest. The Motely Fool says, “It's very much like a snowball effect. As your capital rolls down the hill it becomes bigger and bigger. Even if you start with a small snowball, given enough time, you can end up with an extremely large snowball indeed.”


Now, let’s recall The Rule of 72 which says you will double your invested money in the number of years equal to 72 divided by the rate of return. That means if you are getting 10%, your invested money will double in 7.2 years.

With these facts in hand, it is little wonder we work our tails off to create our little snowballs which we then give to institutions that promise to turn them into big snowballs.

Now, let’s consider some advertising slogans from financial institutions here to help you take advantage of compounding interest:

Citi Bank: Your Citi never sleeps

Capital One Bank: What’s in your wallet?

Bank of America: Think what we can do for you

Washington Mutual: More human interest

Morgan Stanley: One client at a time

UBS: Here today. Here tomorrow.

Barclays: It's our business to know your business

Credit Suisse: Whatever makes you happy

ING Direct: Save Your Money!

And two more I can’t resist sharing:

Wachovia: Uncommon Wisdom

SouthTrust Bank (merged with Wachovia in 2004): We're Not Just Another Bank.

Irony and unintentional double entendres aside, a conspiratorially minded person might read sinister meaning into a few of these slogans.

But, if you are thinking I am about to launch into a diatribe denouncing the actual snowball building track records of our financial institutions, you are mistaken… well at least for now.

Instead, I merely want to propose that all the hype, commonly promoted as the latest and greatest investment wisdom available, is in fact a pig-in-a-poke.

Consider this model for Personal Financial Planning:

  • Plan on retiring
  • Spend less than you make to create a surplus
  • Give that surplus to those who know best how to make it grow
  • Use your investments to finance your retirement


Now ask yourself… “Why retire?”

The Poke Exposed

Investing your hard earned money is not a bad idea; it’s just not the only idea.  Also, it is critical for us to remember the utopian idea of retirement was introduced after WW II by the then newly emergent financial services industry. Here is something for you to consider: What if retirement and all the attendant financial and cultural mumbo jumbo surrounding it is merely a scam?

While the virtually all-consuming conversation about rates of return, asset management, tax minimization and a myriad of other technical and strategic matters rages on, very few people consider never retiring and even fewer are talking about the income side of the equation.

What if you were able to add a zero to the end of your income statement once, twice, even three or four times during your life?  Hmmm… now that’s a snowball that gets everyone’s attention.

Pace’s Poke Remedy

You might think that exposing the “invest-with-us-to-fund-your-retirement” pig-in-a-poke creates an aspirational vacuum. After all, if we aren’t working towards an idyllic retirement, where we endlessly walk hand-in-hand with our spouse on some nameless tropical beech, or smile broadly from the golf cart as we watch them putt for yet another birdie, what are we working towards?

Consider this thought as a foundation for a real and sustainable replacement: all the significant new wealth ever created by individuals has come from their investment in ideas or in real estate of commercial value (which is done so with fresh ideas, ingenuity and foresight) or both.

This is where the principle I call compounding self-interest comes into the picture; when you invest in yourself, the return you receive will compound geometrically.

In order to explain this concept further and to connect compounding self-interest to successful investing in ideas and/or real estate of commercial value, consider this Model for Personnel Investment:

  • Spend less than you make
  • Create a surplus
  • Spend that surplus on improving your personal assets such as knowledge, skills, capabilities, attitude, confidence, energy and health
  • Invest your improved personal assets into creating more wealth and income
  • Repeat

The average American spends less than $100 per year on improving their personal assets. Sounds crazy doesn’t it?  Well, I may be crazy but I believe the first step a person must take is to break free from the institutionalized retirement game.

I will return to this subject in a future blog. In the meantime, your comments and observations are most welcome.

T. Mark Pace


About the author

Mark Pace
Mark Pace
When there is a need for immediate liquidity at the time of someone’s death, it has been my experience that life insurance, when it is properly acquired and managed, is one of the best tools ever created for the creation and transfer of wealth. However, in my 35 plus years of experience, life insurance is rarely properly acquired and never managed… thereby creating a monumental financial disaster for many individuals that should never happen.

If you would like to learn more about this Pig-in-a-Poke subject or discuss any other life insurance issues, contact T. Mark Pace at Mark@objectivereview.com


No comments yet. Be the first to submit a comment.
Leave your comment