Retirement Planning

Are Traditional Financial Strategies Holding You Back?

When it comes to managing your finances, there’s no one-size-fits-all solution. We all strive to make the best choices with the information we have, but conventional wisdom often falls short, leaving many feeling financially stuck despite their best efforts. Today, we’ll explore some common financial strategies that might not be as effective as they seem and discuss how a fresh perspective could unlock new possibilities for financial progress.

Traditional Strategies: Are They Working for You?

1. Paying Off Your Mortgage Early

Many financial advisors recommend paying off your mortgage as quickly as possible, believing it will save you money on interest and free you from debt. However, while this strategy may reduce your monthly expenses, it also ties up a significant portion of your money in your home. This capital is illiquid, meaning it’s not easily accessible if you need it for an emergency or opportunity. As a result, you could find yourself in a position where you need funds but have none readily available.

2. Keeping All Savings in Retirement Accounts

Retirement accounts are essential for building wealth over the long term. However, if all your savings are locked away in these accounts, you may be sacrificing immediate access to capital. The funds in these accounts are restricted by government regulations, which can change unpredictably. The lack of liquidity can be problematic if you face unexpected expenses or wish to seize financial opportunities. Additionally, future tax implications are uncertain, as rules and rates can shift.

3. Paying Cash or Paying Off Credit Cards Monthly

Paying off credit card balances in full each month is a prudent approach to avoid interest charges. Similarly, using cash for purchases avoids accumulating debt. Yet, this approach might not always be the most strategic use of your funds. By continually diverting money to pay off credit cards or to purchase items outright, you might miss out on opportunities to invest or grow your capital more efficiently.

The Common Denominator: Lack of Control

The underlying issue with these strategies is that they often place your money out of your immediate control. Whether it’s in a mortgage, retirement account, or credit card payment, the result is that your funds are tied up and inaccessible when you need them. This lack of liquidity can create a cycle where you’re either unable to address emergencies or must resort to credit debt to cover unexpected costs, which can further strain your financial situation.

The Path to Financial Freedom: Efficient Money Management

To truly make progress, it’s crucial to focus on how efficiently you use your money rather than just where it is placed. The goal is to strike a balance between saving for the future and maintaining access to capital for current needs and opportunities. Instead of adhering strictly to conventional strategies, consider alternative approaches that offer both growth potential and liquidity.

Here’s How We Can Help

We specialize in helping clients understand and optimize their financial strategies. We focus on how you use your money and work to make your financial resources more efficient and effective. Our approach differs from traditional advisors who may prioritize where your money is located rather than how it’s utilized.

If you’re finding that conventional strategies are not delivering the results you hoped for, or if you’re interested in exploring more efficient ways to manage your finances, schedule a free strategy session to learn how we can assist you in achieving greater financial freedom and ensuring that your money works harder for you.

Remember, it’s not just about how much money you make; it’s about how much you keep that truly matters.

Saving for Retirement: Making Your Money Work Efficiently

Saving for retirement isn’t just about putting money aside; it’s about ensuring that your savings can support you throughout your retirement years. In today’s financial landscape, where balancing current lifestyle needs with future financial security is crucial, understanding how to maximize the efficiency of your savings becomes paramount.

The Current Retirement Savings Landscape

Across America, many households grapple with the challenge of preparing adequately for retirement. Fidelity’s 2022 Retirement Report reveals sobering statistics: the average 401k balance is $112,000, which falls far short of what’s needed for a comfortable retirement. Even more concerning, only 55% of Americans are actively participating in any form of retirement account.

If you’re among those diligently saving for retirement or have substantial savings, it’s essential to consider how to protect and optimize those assets. Saving in qualified retirement accounts defers tax payments until withdrawal, posing uncertainties about future tax rates and financial security.

Efficient Retirement Planning Strategies

Financial advisors like us can assist by focusing on two key strategies:

  1. Enhancing Investment Returns: Often involves seeking higher returns, typically requiring higher risk tolerance. While potentially lucrative, it’s crucial to weigh the risks carefully.
  2. Optimizing Financial Efficiency: This approach centers on leveraging your existing assets more effectively, whether through lump-sum savings or optimizing cash flow. The goal is to align current spending with future financial needs while maintaining liquidity and control.

Our Four-Step Approach to Financial Efficiency

  1. Identify Inefficiencies: We start by pinpointing areas where your financial resources may be underutilized or misallocated.
  2. Break Inefficient Habits: The toughest step involves discontinuing practices that hinder financial growth or security.
  3. Save Strategically: Redirect resources into vehicles that offer both immediate utility and long-term security, ensuring you can meet current needs while preparing for the future.
  4. Leverage Assets: Implement strategies where your money works for you, ensuring you maintain control over your finances rather than external entities.

How We Can Help

We specialize in safeguarding and enhancing your wealth through personalized strategies. Our goal is not only to grow your wealth but to empower you with financial efficiency and control. Whether you’re planning for retirement, aiming to protect your assets or secure your family’s future, our strategies are designed to align with your goals.

Ready to safeguard your financial future and ensure your money works efficiently for you? Schedule your free strategy session today and discover how we can help you achieve your financial aspirations.

Remember, it’s not just about how much money you make, it’s about how much money you keep that really matters.

5 Surprising Benefits of Life Insurance

Life insurance often gets a bad rap when it comes to financial planning. Many consider it solely as a tool for providing a death benefit, overlooking its versatile capabilities. In this blog, we’ll delve into five lesser-known benefits that life insurance can offer, shedding light on its potential beyond traditional perceptions.

1. Credit Line Access

Did you know that your life insurance policy can serve as a credit line? Unlike traditional banks, where access to funds can tighten during economic downturns, your life insurance policy offers a unique advantage. You can tap into this credit line whenever needed, providing financial flexibility and the ability to seize opportunities that others might miss.

2. Emergency Fund Substitute

Emergencies can strike at any time, from unexpected home repairs to medical or financial crises. Instead of relying on high-interest credit cards, your life insurance policy can act as an emergency fund. Accessing this fund allows you to address urgent needs without compromising your financial stability or incurring hefty interest charges.

3. Long-Term Care and Critical Illness Support

Facing a long-term care event or critical illness can be financially daunting. Thankfully, many life insurance policies offer riders that allow you to access the death benefit to cover such expenses. While there may be costs associated with utilizing this benefit, having the option can provide peace of mind and vital financial support during challenging times.

4. College Tuition Funding

Saving for your children’s college tuition is a priority for many parents. While 529 plans are commonly used, life insurance policies offer an alternative avenue. The cash value within these policies doesn’t impact your family’s contribution to the FAFSA application, providing a strategic way to save for education without affecting financial aid eligibility.

5. Volatility Buffer in Retirement

Retirement planning involves navigating market fluctuations. Your life insurance policy can serve as a volatility buffer during these uncertain times. Its cash values, unaffected by market swings, offer stability when supplementing retirement income. This strategic approach helps safeguard your portfolio from potential downturns, ensuring a more secure financial future.

These five benefits highlight the multifaceted nature of life insurance beyond its traditional role. If you’re interested in exploring how a whole life insurance policy tailored for cash accumulation can enhance your financial strategy, schedule a free strategy session today. Remember, it’s not how much money you make, it’s how much money you keep that really matters.

The 401k Dilemma: Questions to Ask Before Contributing

Retirement is the ultimate goal for many of us. The dream of being able to stop working and still maintain a comfortable lifestyle is what keeps us planning and saving. One of the most common tools for retirement planning is the 401k, or its counterpart, the 403b. These government tax-qualified plans offer attractive benefits like tax deductions on contributions and tax-free growth until withdrawal. However, before diving headlong into your 401k contributions, it’s crucial to ask some important questions.

1. Tax Implications

Contributing to a 401k allows you to defer taxes on your contributions and earnings until retirement. However, keep in mind that every dollar withdrawn during retirement is fully taxable as ordinary income. This can be a significant drawback if tax rates are higher when you retire, potentially resulting in paying more taxes than you saved initially.

2. Early Access

The rules surrounding 401k withdrawals before age 59 and a half can be restrictive. While there are provisions like 401k loans, accessing your funds early can come with penalties and taxes, leading to double taxation in some cases. This lack of flexibility can be problematic if unexpected financial needs arise before retirement.

3. Inflation and Buying Power

Considering the impact of inflation on your retirement savings is essential. Will the dollars you withdraw in the future have the same purchasing power as today? Factoring in inflation can help you set realistic savings goals to maintain your desired lifestyle in retirement.

4. Future Tax Environment

Tax laws are subject to change, and future tax rates may differ from today’s rates. Planning for potential tax increases or changes in tax regulations can help you prepare better for retirement and avoid unforeseen tax burdens.

5. Control and Flexibility

One of the critical aspects to consider is control over your retirement savings. With 401ks, you are subject to government regulations, and accessing your funds can be challenging and costly before retirement. Maintaining control and flexibility over your retirement income can provide peace of mind and financial security.

In conclusion, while 401ks offer valuable tax advantages and retirement savings opportunities, it’s essential to weigh the potential drawbacks and limitations. Understanding the implications of contributing to a 401k and considering alternative retirement savings strategies can help you make informed decisions and secure your financial future.

If you’re unsure about your retirement planning or need personalized advice, consider scheduling a Free Strategy Session with us to discuss your goals and options. Remember, it’s not just about how much you make; it’s about how much you keep that truly matters.

The Myth of Account Minimums: Why Starting Where You Are Matters More

Are you eager to dive into investing but feel discouraged by hefty account minimums set by financial advisors? This predicament is not uncommon. Many individuals, like a couple I recently spoke with, encounter barriers due to these minimums, often set at astronomical figures like $1,000,000. However, let’s debunk this myth together and explore why starting where you are can be the key to financial success.

The misconception lies in the industry’s focus on poaching large accounts rather than fostering growth from modest beginnings. Our approach differs significantly. We prioritize empowering individuals to build wealth from their current financial standing. It’s not about how much money you have right now but rather how efficiently you utilize it to secure your financial future.

Efficiency is the cornerstone of our strategy. We emphasize making your money work smarter, not harder. This means identifying and plugging leaks in your financial bucket, such as unnecessary interest payments or tax inefficiencies. By redirecting these resources back to you, we help accelerate your wealth-building journey without compromising your lifestyle.

Our process revolves around putting you in control of your money. Unlike traditional institutions fixated on fees and returns, we focus on optimizing your cash flow and minimizing risk. This personalized approach allows you to achieve greater financial security and pass on a guaranteed legacy to future generations.

Starting where you are is crucial. Whether you’re a seasoned investor or just beginning, our team tailors strategies to fit your unique circumstances. We believe in using every dollar efficiently, ensuring that each one contributes to your long-term financial goals.

To kickstart your journey towards financial freedom, schedule your Free Strategy Session today. Additionally, explore our free webinar, “The Four Steps to Financial Freedom,” to delve deeper into our proven process.

Remember, it’s not how much money you make, it’s how much money you keep that really matters.

Exploring Limited Pay Policies in Infinite Banking

When it comes to the infinite banking concept, the traditional design is a life paid-up at age 100 or 121 with a 40/60 split, 40% base policy, and 60% to paid-up additions. But sometimes we think it can make sense to do a limited pay policy, whether that be a 10 pay, a 20 pay, or a paid-up at age 65.

When it comes to designing a whole life insurance policy designed for cash accumulation, most agents use the 40/60 split, as illustrated in Nelson Nash’s bestselling book, Becoming Your Own Banker. So this design is used to have a substantial piece of the premium going towards the base policy because those are very efficient by nature and actuarially designed to get better and better every year, and a substantial piece going towards the paid-up additions. Those paid-up additions allow us to supercharge the cash value, accumulation, and accessibility in those early years of the policy.

Typically, you could leave that paid-up additions rider on for anywhere from 5 to 10 years, and at that point, the policy is efficient on its own and you could drop that premium down. The second piece of that design is the life paid-up at age 100 or 121, meaning the base policy premiums are going to be payable until the insured reaches age 100 or 121.

The thinking behind this is we want to be able to put money into our banking policies as long as possible. And while that is the goal, again, to allow us to be able to put money into the policy as long as possible, we also have to be cognizant of the fact that when you get into retirement, let’s say in your late sixties or seventies and you’re no longer working and you’re living off your investments or your savings, your cash flow is limited.

What we found is that some people get into retirement years and they don’t think they have the money to put into these life insurance policies. and that’s unfortunate because they’re probably thinking about things incorrectly. But because we’ve seen this mindset over and over, we have begun to implement limited pay policies, policies paid up at age 65. What that means is there are no more premiums after age 65.

Now we also know that people will be looking for places to put money beyond retirement years. So the point is this: why do we recommend the limited pay policies? Well, as someone in my thirties, I know that at age 65, I don’t plan on working any longer, but I still want to be able to utilize this concept while I’m working, in fact, these policies still continue to grow and compound interest even after age 65.

So what’s the downside really? Well, the only one that I could think of is I’m no longer able, I no longer have the ability to put money into that policy, whether I want to or not. But if you recall what I said earlier, we do this for younger people. Why? Because they have the option of buying the limited pay policy.

When you get into your fifties, your options for limited payment start to reduce. And if you’re understanding the infinite banking concept, you may want to buy more policies in your fifties and sixties. Those policies certainly will be paid up at age 100 or age 121. So your option for limited pay policies is off the board as you get older.

But if you have a situation where you have premiums stopping at age 65, that gives you the wherewithal or the ability to fund the other policies that you purchase later in life with the cash flow that you would have from retirement.

If you’d like to get started with an IBC policy, a policy designed for cash value accumulation, be sure to schedule your Free Strategy Session today. We’d be happy to speak with you.

And remember, it’s not how much money you make, It’s how much money you keep that really matters.

Infinite Banking for Near-Retirement: Maximizing Financial Efficiency

Are you nearing retirement and considering implementing the infinite thinking concept, but have the feeling that it’s too late?

I was talking to a guy this week who’s nearing retirement in only six months at age 58. He came to me with concerns about how to take his buckets of retirement assets and also implement the infinite banking concept with a policy. He wasn’t sure how the two worlds fit. When it comes to retirement money during the accumulation phase when you’re saving up and building up your pool of assets. It’s easy in the matter of all you have to worry about is saving. However, as you get closer and closer to retirement, the focus shifts from saving to: “How do I make sure these assets last and last me my entire lifetime?”

So you go from a mindset of “I’m willing to take some risk because I have some time to recapture any momentary losses” to a mindset of “I can’t afford to have any losses because retirement is right in front of me.”

As he’s nearing retirement and as anyone’s nearing retirement, you have to consider that your income is going to stop. And in this family, his income was $145,000. Now his wife is going to continue to work for an additional four or five years. But then her income’s going to stop also. We need to make sure these assets are going to last as long as they do.

So the real question is how do you make his money as efficient as possible so that he can reach all of his income and retirement goals?

Implementing the infinite banking concept in this person’s case could mean something very simple. Giving him permission to spend down his assets. Spend down those assets without worrying about sacrificing his wife’s livelihood should he pass before her and also his livelihood should she pass before him. Additionally, we could lock in a legacy piece for their two daughters.

So let’s think of this in two steps.

Step number one is to set up a policy on him so that his wife has survivor income generated from the death benefit in his policy.

Step number two is purchasing a policy on the wife which will give her permission to spend down all of the assets to supplement her retirement income and her survivor income needs without jeopardizing the legacy for their children.

Now we can’t forget that these are specially designed whole life insurance policies designed for cash accumulation. So what does that mean in this case? Well, by transferring some assets from these retirement income accounts, and using that money to fund life insurance premium, you’re moving money from at risk and forever taxable to safe money that’s never taxable, that you have access to, full liquidity use and control over so that as life goes on, you still have access to that money. And even after accessing that money, you’re not interrupting the compound interest curve on that safe pool of money.

And in our discussions with this couple, we found a few things. Number one, they want to travel. Well, they can borrow against their life insurance cash value to pay for their trips and then pay back those loans using their retirement income.

The other thing they want to do is every four or five years, they want to buy a new car. Again, they could buy the car by borrowing against the cash value of the life insurance and then make those payments back to the policy to replenish for the next vacation or the next vehicle.

So there’s a lot of things that they can do. And by the way, this is making their money more efficient because they’re not losing the opportunity cost by paying cash. Neither are they losing opportunity cost by financing directly with a bank or a credit company.

Another thing to consider that these policies can be used for is a volatility buffer. Since all of their money is in investments. There is risk associated with investments by nature. If for example in a down year, a year where the market went down, their account value went down, they still need to generate income because their income from their jobs has been turned off. They could instead borrow money against their life insurance policy so they don’t have to have a double negative in a year.

So there are a lot of reasons when you’re on the threshold of retirement where life insurance can really come into play and make your retirement better.

If you’d like to get started with an infinite banking concept policy, a whole life policy designed for cash value accumulation, schedule your free strategy session today.

And remember, it’s not how much money you make, it’s how much money you keep that really matters.

The Triple Threat of Inflation Strangling Our Finances

We all know that inflation is running wild these days, but do you realize that there are actually three types of inflation we’re trying to combat at once?

The first and most obvious type of inflation is the one we see every day, price inflation. It’s the cost of goods and services and their price increases. We see this every time we go to the grocery store, every time we go out for dinner, every time we fill up our gas tank. We don’t need some government agency to tell us that inflation is up, although they’re telling us it’s down.

The Federal Reserve has two tools in its toolbox when it comes to combating inflation. The first is to raise interest rates. And that will hopefully slow down the economy and the effects of inflation. The second is to buy back bonds. This takes money out of circulation and tries to squeeze the money supply within the economy.

Here’s a good question. Who caused the inflation? Wasn’t it the Fed? Didn’t they print more money? Isn’t that sort of like the fox guarding the henhouse? I don’t know. Maybe I’m just cynical.

Now, to add on the second layer of inflation, it’s called wage inflation. Workers everywhere who are feeling the effects of price inflation are striking or lobbying for more wages. Why? Because they’re falling behind.

Recently the UPS workers had a strike and their union got them from a $135,000 contract to a $150,000 contract. However, most employees don’t have the pull of a union to increase their wages. So the question becomes, how do you keep up with these increasing prices when your salary or your income isn’t also increasing?

But here’s the issue. As these workers receive higher wages, that causes more price inflation. Because those wages increase the cost of the goods and services that the consumer is buying. The consumer always bears the brunt of all of these decisions.

The third type of inflation is something called lifestyle inflation. And this comes from the combination of the prices inflating and the wages not increasing. And what happens is, that because consumers aren’t necessarily slowing down their spending, they’re forced to put their charges on credit cards. And what that adds is an extra layer of cost, because credit cards have an interest rate being charged.

Basically, what’s happening is prices are increasing at a rate that’s faster than the wage increase. And consequently, what happens is people don’t know this or realize this. As they’re making their purchases, they’re realizing they don’t have enough money and if they want to make that purchase, they have to use their credit cards.

In December of 2022, the credit card debt across America was $916 billion. At the end of July 2023, it stands at over $1 trillion. People are charging on their credit cards now more than ever. And, compounding the increase in balances, is an increase in interest rates and a slower payback period. So what’s happening is people are charging more, getting less, and paying it over a longer period of time because the interest rate is eating into their cash flow.

The question becomes, how does this transition into not only the current lifestyle of people but also into their future lifestyle and their ability to save for their major milestones and eventually for retirement?

In the second quarter of 2023, more people opted out of their retirement accounts than ever before. This makes it clear that people aren’t saving as much for the future. But whether you’re ready or not, these milestones are going to creep up on you.

If you’d like to get started saving for your future, putting yourself, your business, and your family in control of your cash flow and your assets, be sure to check out our free web course, the Four Steps of Financial Freedom that explains exactly how we take our clients through this process.

And remember, it’s not how much money you make. It’s how much money you keep that really matters.

Unraveling the Stealth Tax and How Inflation Impacts Your Wallet

Have you noticed it costs a lot more simply to exist these days? They call inflation the stealth tax because it’s not written in the tax code, but it affects every single one of us. So what impacts inflation?

First and foremost, it has to be the amount of money in circulation. The Federal Reserve, which is not part of the federal government, defines M2 money supply as the amount of money in circulation, plus money set aside in retirement accounts.

So why does that matter? Well, 20 years ago, the M2 money supply was $4.9 trillion. 20 years later, it stood at over $21 trillion. In 20 years, it grew by 400%. The reason that impacts inflation is that you have more dollars chasing the same amount of goods and services. That increases the price of those goods and services. 

So basically, as the government is digitally printing more and more money, the value of that dollar is going down every single time. And what’s happening is, as the government’s trying to decrease inflation, they’re putting a squeeze on that money supply, taking money out of circulation to try to bring inflation back down to a reasonable rate of what they define as 2%.

But what impact does that have on us as consumers, whether we’re a family or a business? Well, we’re fighting to buy the same goods and services with a pre-inflation cash flow in many cases, it could cause a severe cashflow pinch in your economic system. Our money has less buying power, meaning we’re buying fewer goods and services with the same dollars. That’s called the depreciation of the dollar.

One of the most recent pinches that we felt is with homeowners insurance because it only comes around once a year. But all of the costs of labor and materials have gone up so much that the cost of insurance for your home has also increased because it’s not locked in.

Here’s another thing that impacts our finances. 20 years ago, the federal debt stood at $5.6 trillion. Today, it’s over $32 trillion. In five years, it’s projected to be over $40 trillion.

Have you guys ever checked out nationaldebtclock.org? It’s kind of freaky.

Although the national debt is projected to increase by 70% in the next five years, the amount of taxpayers is only projected to increase by 8%. Where is the government going to get the tax dollars to pay for everything? And what impact will that have on our ability to live our lives and save for the future?

This is why it’s important to pay taxes on our dollars now and pay debt on our income now, rather than postponing it into the unknown future. Because the government has obligations and they’re going to have to pay for those obligations, but they’re not our obligations. By paying taxes on our income now, we’re not postponing that into the unknown future and taking it one step further and saving in a place that’s sheltered from taxes, where we pay taxes on the money once and then never have to pay a second time, is imperative to our financial security going forward.

Wouldn’t the best way to make your money last longer be to reduce or eliminate the taxes that you’re going to have to pay in the future? This is why it’s important to make your money more efficient. And again, one of the things that you can do is to shelter your money from taxes, but also do it in a way that you have access to that money. So you’re not deferring the tax, or kicking the can down the road, you’re sheltering the money. That’s a big difference.

If you’d like to learn about how we put this process to work for our clients so that you’re able to keep the money in your family and your business and out of the government’s checkbook.

Check out our free web course, The Four Steps to Financial Freedom that details exactly how we put this process to work. Or, if you’re ready to get started, feel free to schedule your free strategy session today.

And remember, it’s not how much money you make, it’s how much money you keep that really matters.

Transitioning From Earned to Passive Income

As you go through life, everything changes. The only thing certain in life is, in fact, change. So when you first get a job or you first start in business, your goal is to create 100% of your earned income to support your lifestyle. And as time goes by and you evolve towards retirement, your reliance on earned income will go down and you will transition to 100% of your lifestyle being funded by passive income. And as we’re evolving from 100% earned income to 100% passive income, there are various stages.

Now, whether you are a W-2 employee or a business owner, When you’re first starting out, oftentimes you’re just making enough to get by. All you want to do is to support your expenses and your lifestyle. However, over time, and as things change, hopefully, you’re able to earn some more. Maybe you got a promotion or expanded your business. 

You’re earning enough income to not only cover your lifestyle but also to put money away in a savings account or an emergency fund. And then phase three, really simple. You have enough to cover your lifestyle. You have enough for your emergency fund. And now you can start investing to create assets that will generate passive income. And the fourth phase is when all of your lifestyle can be covered with income from passive sources.

According to a recent study by Intuit, 61% of business owners around the world struggle with cash flow. That means they’re not covering their lifestyle. 69% of business owners either sleep less or admit to losing sleep due to cash flow concerns. And the point is these people are having trouble covering their overhead. So it’s almost impossible for them to start saving because they’re dealing with these cash flow issues. 

So the question becomes, how do you transition between these phases? A lot of times people try to go from phase one all the way to phase three, where they have passive income generated for them through their business. However, it’s important to build a foundation of savings that you have liquidity, access, and control over so that you are not completely bogged down by debt and other financial pressures that come with these big expenses.

That’s why it’s really important to go from phase one to phase two. You need to create that emergency fund, that savings that can be your backstop whenever you go to another phase and then all of a sudden the rug gets pulled out from under you.

One way we help our clients to build that safety net and to build an actual pool of cash that they have liquidity use and control over is by using specially designed whole life insurance policies designed for cash accumulation so that they’re less dependent on banks and finance companies and they’re actually able to own that finance function in their own life.

So instead of going to the bank down the street to finance a purchase for their business or their family or anything like that, they’re able to go to an entity that they own and control and they have a contractual guaranteed access to that cash to finance the things of life. Whether it be a business purchase, like a new vehicle, or they want to go on vacation with their family and they need the cash flow to do so.

The key there is that because they’ve taken this step to create that savings through a specially designed life insurance policy, they now have access to capital and nothing is telling them that they can’t take some of that money and use it to grow their business, to create passive assets. And that’s the key. 

You see, these policies are great for a few things. Number one is getting out of bad debt and debt that has an excessive amount of interest being charged or maybe you want to refinance that debt through the policy so you own and control those terms.

Also, it’s a great place to warehouse wealth because you have tax-deferred growth within the policy as well as guaranteed access through the policy loan provision and it’s also a great place to store money for investments.

You can put money into the policy and then borrow against the cash value in that policy to go out and make investments so you’re able to earn a higher rate of return on your money. Whether that be investing in your business or a great stock opportunity, or maybe you want to make a loan to your family member.

The possibilities are endless with these policies because you own and control the financing function the only person you need to qualify for the loan with is you. And that’s a key point. You’re not asking permission when you request a life insurance policy loan. You’re giving an order that is not a small distinction.

If you’d like to get started with this process, be sure to schedule your free strategy session today. Also, if you want to learn exactly how we put this process to work for our clients, check out our free web course, The Four Steps to Financial Freedom.

And remember, it’s not how much money you make. It’s how much money you keep that really matters.