Most financial strategies in the world that we live in only do ONE JOB! A security/investment can only gain or lose value. A bank account can only hold money; A college fund has one purpose for college education; Yes, the list goes on and on… You get the picture! Usually, multi-tasking is not a trait for today’s dollars. I do not know about you, but I definitely want my money working as hard as me to say the least!!
Let me introduce you to a product that provides that. I know of only one vehicle that provides growth, liquidity, tax benefits, guarantees, loans, etc… and will allow you to borrow against this account and use the borrowed funds to put into another asset that can appreciate or provide cash flow.
This product, however, is the most criticized asset of all time. We have financial pundits like Dave Ramsey and Suze Orman that are heavily against this type of account. They state how it is worse than predatory lending, worse than payday loans, and just a horrible idea!
The vehicle that I am talking about is an overfunded, dividend paying whole life policy from a mutual life insurance company. Yes, that was a mouthful! However, this vehicle is structured for more growth than it is for protection. That should tell you something right there. It also is a savings vehicle and the cheapest savings vehicle at that! It offers liquidity like a bank account, the money grows tax deferred, and if you structure it properly the growth of the account and money taken out is all off of the radar screen of the IRS. One of the main benefits is their loan provisions. The loan provisions allows you to borrow against your policy, but your growth never comes out of the “growth position”. The insurance company actually extends you a stated loan that acts like an open-ended line of credit at 4.5-6% annual interest rate. The loan is guaranteed, private (does not report to credit bureaus), open-ended (you definite the payback terms), can be used for any purpose, works as simple interest, and the loan values always go up because your cash value is guaranteed to go up. Therefore, you are leveraging the insurance company’s money and not your own. Therefore, your growth is referred to as uninterrupted compounding interest!
This is how you have 2 Assets working for you at the exact same time!! You have the life insurance compounding tax free for you on day one and when you leverage the insurance company’s money (just like you would a bank) you can put that into something that provides more appreciation or cash flow to generate higher profits for your financial landscape.
Please contact me if you want to learn more at Sam@DentonWealthStrategies.com.