Successful Strategies that Strengthen Business

Successful Strategies that Strengthen Business
Successful Strategies that Strengthen Business

Finding successful strategies that strengthen your business can at times, be somewhat of a challenge. There is no blueprint for your exact situation, exact business model, or even exact timeframe in which you are operating.

Walt Disney, arguably one of the greatest entrepreneurs that lived, at one point didn’t know how he was going to keep his vision of Mickey Mouse alive. Ray Kroc, co-founder of McDonald’s, also experienced similar growing pains. The common thread between the two?

During times of uncertainty both men used the cash value from their Life Insurance Policies to keep their business afloat.

Successful Strategies that Strengthen Business by Using a Whole Life Policy

When a business owner chooses to use the living benefits of a Whole Life Insurance Policy, business operations can become easier. Whole Life brings:

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guaranteed growth

 

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A Whole Life Insurance Policy is like a super savings account. It’s an asset that protects your cash, earns you a steady rate of return, and gives you liquidity that can be accessed through a policy loan.

With Whole Life Insurance, policy loans are crucial to a business owner receiving tax-advantages. This is because when you borrow against your policy in the form of a loan, it is not a taxable event. This allows for business owners to flood their business with cash if and when it’s needed.

Staying Financially Prudent Through a Whole Life Policy

Because business owners (or anyone) who use(s) Whole Life Insurance realize their cash value comes from the actual money paid to the insurance company to ensure their death benefit; many become more financially responsible.

If a policy loan remains outstanding then the loan will eventually be paid off by the death benefit. However, if there are outstanding policy loans, then a policy owner can only borrow what left over cash value is available.

The difference between using a policy loan versus any other financing method is that the interest rate, which is typically lower than a bank’s. If you are using the loan to influx your business situation, the loan is not considered income – which means no tax.

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Whole Life Insurance is the Foundation for Success

Whether you’re a business owner, or not, Whole Life Insurance is an asset that creates a solid financial foundation. If catastrophe strikes, a Whole Life Policy can provide a soft landing.

In addition to the security, a business owner can properly work their policy loans into their business model, so things can always be thriving.

Success starts with building upon solid foundations, and Whole Life Insurance provides that foundation.

 

Read: How to Permanently Strengthen Your Business

Watch: Life Insurance: The “AND” Asset

Listen: How Systems Can Improve Your Finances

Why Austrian Economics will Increase Your Billfold

Why Austrian Economics will Increase Your Billfold
Why Austrian Economics will Increase Your Billfold

Austrian Economics is a school of economic thought that promotes financial control and financial freedom. Inherently, Austrian Economists believe that any monetary system needs to be backed by a commodity, and that it’s dangerous for any economic system to be supported through a system of false credit.

Though Austrian Economics was founded in Europe and has been around since as early as the 19th c., the theory is currently fostered and championed In the United States.

Austrian Economics is one of the few bodies of economic thought that puts their theory into practice with the tangible financial vehicle of life insurance.

Austrian Economics and the Infinite Banking Concept

The Infinite Banking Concept is the idea that you are both the banker and borrower, and your “bank” is your Whole Life Insurance Policy.

When you wear both hats as banker and borrower while using your whole life insurance policy, you are able to earn a rate of return on your original policy while simultaneously borrowing against yourself with tax-advantages and earned interest.

This strategy is called Infinite Banking. Infinite Banking is perfect for a Whole Life Policy because, as the name suggests, you can pass your “bank” down to your beneficiaries, and they then can Infinitely Bank.

Progress and A Better Chance at Abundance  

Considering our economy is based upon fractional reserve lending and our currency is backed, not by gold, but by the Federal Reserve’s judgement, it’s no surprise how many of us get shackled by debt. Everything is based on credit with an interest rate.

In this modern time, most of us need a car, a home, and an education. So, we give away our time and effort to promising lenders that we will pay them back in ‘x’ amount of years with ‘x’ amount of interest.

It’s the interest that kills our pocket book. We end up paying thousands of extra dollars to the bankers in lending fees.

This lack of financial control is what stifles our financial freedom. It also prevents an individual from taking advantage of the opportunity cost of money.

Financial Control = Financial Freedom

By choosing to eliminate lending institutions from your financial picture, you are able to gain control of your financial life. Infinite Banking makes that possible because you are earning the interest on whatever you borrowed, which would have otherwise gone to a bank.

This opportunity cost helps build your personal wealth, instead of building the bank’s wealth.

Infinite Banking and Whole Life Insurance

The Infinite Banking Concept can be used with many different vehicles, but it is best used with Whole Life Insurance. Life Insurance is one of the safest and longest running industries, as it’s been around for thousands of years. (A Glance at the History of Life Insurance) Life Insurance companies were among the few industries that paid dividends during The Great Depression.

To Infinitely Bank with Whole Life Insurance is a secure way to build lasting wealth. Besides the death benefit that naturally accompanies Whole Life Insurance, a policy owner receives ample living benefits like tax-advantages, income during retirement, and guaranteed growth.

The Austrian School of Thought and the Infinite Banking Concept is what helps an individual gain control over one’s personal economy. When there is financial control, there is financial freedom.

Read: Austrian Economics: For a Failing Economy

Watch: Preparing for Your Complete Retirement Journey

Listen: Concerning the American Financial System

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The Central Bank Definition & History

The History & Definition of the Central Bank
The History & Definition of the Central Bank

What is the Central Bank? Surprisingly, a lot of people don’t know what the central bank actually is. Currently, the central bank is the Federal Reserve System that provides services for the United States’ banking system, monetary policy, and issuing currency. When and Why did the Central Bank Begin?

The Central Bank began in 1913 with the induction of The Federal Reserve Act of 1913. The Act’s predecessor was the 1907 Banking Panic.

The United States, since it began, had been operating under a pseudo national banking system and bartering system. Depending on the decade or territory of the U.S. at the time, an individual either bartered, or used bank notes to transact.

As the economy gained momentum (circa late 1800s) did the idea of a central bank become more appealing – especially for those financiers who understood how modern banking worked.

Fractional lending among goldsmiths (the goldsmiths turned into the banks) started well before the United States was established, and because fractional lending was unregulated due to experience, many banks during the gilded age and early 20th century failed.

These run on banks, including the 1907 Knickerbocker Crisis, initiated the need for fractional lending to be organized and regulated.

The Central Bank Today

Just as laws are written in response to what is politically at hand, so was the Central Bank’s initial guidelines in the early 1900s. With the information age ushering boundless access to knowledge on finances, currency and private monetary habits, some of the United States Central Bank ideas are antiquated.

People on U.S. soil, for hundreds of years, have ceaselessly debated that ‘the rich keep getting richer.’ If you want to take that same adage and apply it to the central bank, it rings true.

How the Central Bank Makes Money

Banks make money by lending out depositors money with an interest rate. Legally, banks are allowed to do this because they are part of the conglomerate Central Bank, or The Fed.

The United States economy, monetary system, and habits rest on the function of credit. The more money inserted into the economy stimulates development and growth – nevermind the fact that usually, the insertion of dollars into the economy means money being created from nothing. (The American Recovery and Reinvestment Act of 2009)

When money with no value inflates the economy there becomes a huge imbalance and false economic indicators. (The Misleading Indicators) These false indications lead individuals to misread where the interest rate is going, to then make poor financial decision.

Remove Yourself from the Central Bank

One way to avoid allowing the bank to make money from you as a depositor, as well as guarantee yourself the opportunity to make accurate financial decisions is through Infinite Banking.

Infinite Banking is way to remove the Central Bank from your personal economy by using a Whole Life Insurance Policy in its place.

Whole Life Insurance is a vehicle for your money that allows you to take advantage of its opportunity cost. Instead of the central bank making money from your deposit, as an infinite banker, you are able to be both the lender and the borrower. This affords you the ability to have control over your money, not the bank.

Whole Life Insurance

Whole Life Insurance is often overlooked because individuals view the product as death insurance. In reality, Whole Life is meant to provide living benefits – like that associated with Infinite banking.

Whole Life Insurance provides market safety, a steady rate of return, tax-advantages, and a death benefit. Whole Life Insurance has also been used for hundreds of years by the ultra-rich to maintain and build their personal wealth.

We’re not saying that Central Banks are bad, but what we are saying is take advantage of your own money the same way banks today do; do it with Whole Life Insurance.

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Read: Austrian Economics : For a Failing Economy

Watch: Life Insurance: The “And” Asset

Listen: Introduction to the Austrian Economic Philosophy

Your Personal Family Banking System

Your Personal Family Banking System
Your Personal Family Banking System

Having a personal family banking system is easier than you think. It appears that individuals (turned families) have become accustomed to banks (or The Feds) telling them what to do with their money – how to save it, how to borrow it, and what to spend the borrowed money on. It’s no wonder why people believe the idea of a Family Bank is only reserved for the ultra-rich.

On the contrary, a personal family banking system is a concept that’s easy to implement and understand if you use Whole Life Insurance as your banking vehicle.

Your Personal Family Banking System and Whole Life Insurance

Many individuals, when they hear about life insurance, assume it has everything to do with a death benefit – which, that assumption is true, but it’s not the whole truth. The whole truth depends on what type of insurance you buy.

Term Insurance guarantees a death benefit. Actually, with term insurance, that’s what you pay for – just a death benefit. With Whole Life Insurance, not only do you get a death benefit, but it also comes with living benefits – like your personal family banking system.

How a Personal Family Banking System Operates with Life Insurance

Whole Life Insurance comes with an inherent Cash Value. The cash value is possible because mutually owned insurance companies are literally owned by the policy holders, not by those sharing ownership on the stock market.

This mutual ownership allows life insurance companies to use the death benefit reserves as collateral when a policy owner wants to borrow from the insurance company. Unlike fractional reserve lending which is authorized to lend out 90% of a depositor’s dollar and keep only 10%, life insurance companies lend out 100% of the policy owner’s dollar because the dollar coincides with the amount of death benefit on reserve.

This lending strategy ensures certainty and security. With life insurance, there is no such thing as “bank” insolvency or regulation laws suddenly changing. A mutually owned life insurance company is a private business with a private contract between themselves and policyowners.

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Cash Value Insurance is a Foundational Asset

The Cash Value is what allows you to borrow against yourself (typically tax-free), earn an annual rate of return, and provide your family with a legacy. Cash value also allows you to build wealth – through your personal family banking system.

Instead of using a traditional bank to finance high-priced items, like a home, cars, or an education, your whole life policy can finance those big purchases. When you use your whole life policy as a “bank,” you are still earning interest on your original cash value.

If you’re ever investing your cash value into other performing assets and something goes awry, you are financially safe. You determine the terms of your policy loan. This concept is what makes whole life insurance a foundational asset. You can find ways to enhance your wealth without being at risk.

Your Personal Family Banking System can Begin Right Now

There is always time to readjust your finances and start putting your money into a Whole Life Policy. We at Paradigm Life work with hundreds of individuals from all ages and all economic backgrounds. The only thing that matters to us, is that you keep your mind open to the possibilities of wealth through your personal family banking system.

Read: Powerful Cash Management Strategies

Watch: Family Banking that Works

Listen: Planning Ahead for College Tuition

Home Prices are Rising Again: The Millennial Disconnect

Home Prices are Rising Again: The Millennial Disconnect
Home Prices are Rising Again: The Millennial Disconnect

According to S&P/Case Shiller, home prices are rising again. (Wall Street Journal) The housing cost in the top 20 markets around the country are moving upwards of 4% from last year. What does this mean for baby boomers?

Home Prices are Rising for Millennials: How this is a negative for boomers?

Most millennials prefer to rent over buy. (Forbes) They also say saving for retirement is a challenge because they don’t make enough money to save.

The millennial’s plight causes an economic disconnect for baby boomers. One way to help supplement retirement for the 55 and older generation is to sell their homes. Baby boomers are scheduled to retire within the next 10-20 years. If the rising generation is skeptical of owning a mortgage, then who will buy from the soon-to-be retirees?

Check Out the Top 20 Housing Markets
Check Out the Top 20 Housing Markets

Baby Boomers, Home-selling and Retirement

Because baby boomers did not save enough for retirement, they consider their home to be one of their greatest assets. (Forbes) Boomers want to downsize their once needed single-family home, but currently, Gen Xers don’t want the same type of suburban pseudo mansions, and millennials have an adverse attitude about owning anything substantial.

This leaves those heading into their non-working years with more houses than there are buyers. Now what?

There is Still Time to Change Directions

Many baby boomers come to Paradigm Life with three major retirement fears:

  1. Running Out of Money
  2. Keeping up with Healthcare Costs
  3. Maintaining an Independent Lifestyle

All three of these fears accompany a common underlying emotion – anxiety. Many who are quickly approaching retirement feel like their options are limited. Typically, a second income stream is considered or they are faced with having to work longer.

We educate individuals about how their money, even a small retirement savings, can be refocused into a whole life policy that can eliminate retirement fears and provide an income during the non-working years.

Income for Life

A properly structured Whole Life Policy can give those in retirement or near retirement an asset that provides liquidity, market security, a steady rate of return, and a death benefit.

Life Insurance was once the primary savings vehicles for Americans, and companies provided retirement pensions via Whole Life Policies.

Since Americans have been forced to take control of their retirement, and relinquish their savings to the “company matched” 401(k)s, retirement accounts have dwindled, not grown.

Whole Life Insurance, unlike the 401(K), is not connected to the stock market, so a retiree can always guarantee an income. Also, the cash value from a policy can be distributed at any time and in any amount – even to invest in other performing assets. (Why Use Insurance for Retirement?)

Your Retirement Home

Whether you want to stay in the home in which your kids were raised, or are looking to downsize, you can maintain or finance with your Whole Life Policy.

Whole Life Insurance provides flexibility and safety to accommodate the volatile economic changes that are beyond your control – like the rising generation’s attitudes toward home buying.

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Read: Infinite Wealth, A Different Kind of Retirement

Watch: Getting Ready to Retire at Any Age

Listen: The Truth About Your Retirement

401(K)’s: Reaper of Your Retirement

401K's: Reaper of Your RetirementHe hung up the phone, it was HR, it was his turn to meet with the ‘retirement plan’ specialist. While it wasn’t mandatory, the many emails, memos and reminders provided by HR led him to realize that not attending his appropriated time may perhaps be frowned upon by higher ups.

So he begrudgingly walked to the main conference room thinking only of the deadline looming later that afternoon and if he really was ‘old enough’ to be worrying about his retirement.

He entered the conference room and was met with an overly friendly and hyper agent who directed him to a seat in front of piles of paperwork.

An hour and a half later, he found himself back at his desk, now very close to his work deadline, and feeling completely overwhelmed.

Having an unclear recollection of what had transpired, he had been told that his ‘retirement’ account was a 401K and at only 3% of his earnings toward it, he would eventually accrue enough to retire with. He just had to pick stocks from a list that had been provided. A list where nothing seemed remotely familiar, but hey, he got to choose up to 10!

Had he really just signed up for this? He started to ask himself all types of questions. What stocks did he choose? How would he know if they ever yielded any profit, or were any good? And 3%? Hardly seemed sufficient (even over time) to provide him with a sufficient amount of earnings to retire on?

Who had control of his 401K? The rep he just met with? His company? Did he have control, and if so, did he really have any say?

Retirement with a 401K? A ‘Grim’ Financial Future

If you have ever worked for a corporate company, more than likely you have had a similar experience. Under the guise that a 401K is the best type of retirement plan, often employers will handle all of the preliminary work in order to get as many employees to join as possible.

In recent years employees have been given a strong ‘nudge’ toward using a 401K as their retirement vehicle and more companies are automatically enrolling their employees in 401K’s (npr.org). It is one thing to acquiesce to something ill-informed; it is a completely different matter to be added to something without your approval.

Yet this is often the way employers handle 401K enrollment. Perhaps it has something to do with employer contributions to the 401K plan being tied to company profits and other corporate goals.

The push of corporate America to adhere to the 401K ‘gods’ may also have something to do with the fact that the overhead and administrative costs of the 401K plan (along with any employer matched contributions made) are tax-deductible expenses.

Companies tend to begin the rate of employee contribution at 3%, and may even automatically raise that percentage for you.

If you find any of this overwhelming, frustrating, inappropriate or even maddening – the good news is that there is a better way to secure that your retirement does not end up ‘kicking the oxygen habit’ well before you do.

Revive Your Retirement with Whole Life

A successful and financially sound retirement plan involves key factors in order to ensure that you have enough money once it comes time to retire.

  • Sufficient death benefit amount
  • No risk or volatility
  • Control
  • Interest earning
  • Cash Value

Incorporating the benefits of a Whole Life Insurance policy as your long-term retirement plan provides you with all of the above, while simultaneously allowing you to manage and access the cash value of the policy during your lifetime.

There are no penalties to pulling the cash value of your Whole Life policy before you retire. There are penalties and many rules when it comes to pulling any money from your 401K.

A Whole Life policy is not subject to the stock market. Therefore the money in your whole life policy is not at risk nor is it dependent on the volatility of the ever changing stock market.

You and only you are in control of how your Whole Life policy, its cash value, and benefits are managed. Quite a difference when compared to the way a 401K retirement plan is structured.

If you are tired of not having control over your retirement, if you have decided you want more – then take back your financial life and revive your retirement with Whole Life.

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Read:    Infinite Banking 101

Watch:  Webinar: Getting Ready to Retire at Any Age

Listen:   Overcoming Emotional Investing

 

The Cost of Banking on Yourself

The Cost of Banking on Yourself
The Cost of Banking on Yourself

The Cost of Banking on Yourself depends on your personal economy and your financial goals. Just like no two snowflakes are alike, no two financial situations are alike. Neither are people’s goals alike; which knowing a person’s financial goals helps any wealth strategist building a Whole Life Policy determine how much you want to use for the Cash Value.

The True Cost of Banking on Yourself

Whole Life Policies are the vehicle used to implement the Bank on Yourself concept. If you are opening a policy to Infinitely Bank, then the cost will be determined by you.

For Example:

Your overall wealth picture may include investing in real estate, savings, and retirement. With that in mind, you and your wealth strategist will look at definitive financial starting points and timelines to meet these goals.

The following graph will help you see how the cash value in a whole life insurance policy builds. Keep in mind this is average, Paradigm Life builds policies with Paid-Up Additions to maximize your policy’s earning power and cash reserve.

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The Cost of Banking on Yourself with Paid-Up Additions

The Paid-Up Additions Rider, and how it’s added to your policy, is one of the defining differences between how Paradigm Life structures Whole Life Insurance versus other brokers.

Because Paradigm Life understands that an individual’s primary focus is more than just having a life insurance death benefit, we build policies to provide the living benefits with whole life insurance. Those living benefits is the crux to wealth building.

The Wealth Building Cost of Banking on Yourself with Life Insurance

Properly structured Whole Life Insurance gives anyone who is interested in wealth building the opportunity to do so. The ultra-rich, like Walt Disney and Ray Kroc used their Whole Life Policies to sustain their businesses.

So ultimately, the cost of your life insurance policy for banking on yourself is really up to you. You and a wealth strategist can sit down together to determine the best strategy to achieving your financial goals.

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Read: Banking on Long Term Success

Watch: Life Insurance: The “And” Asset

Listen: President Patrick Donohoe and Rich Dad Advisor, Andy Tanner, discuss Investing

How to be a Wealthy Entrepreneur with Infinite Banking

How to be a Wealthy Entrepreneur with Infinite Banking
How to be a Wealthy Entrepreneur with Infinite Banking

Being a wealthy entrepreneur with the infinite banking concept looks different for everyone. Just like people come in many different shapes and sizes, successful entrepreneurs come with many different talents and skills.

The term ‘entrepreneur’ was used in language as early as the 1700s, but indicated that an individual had some form of business competency without having formal training. It wasn’t until the 1920s when modern economists like Ludwig Von Mises and Carl Menger, coined the term to have a positive connotation.

A more recent economist, Robert Reich, refers to the ‘entrepreneur’ as an enterprising individual who builds capital through risk /and or initiative. (mashable.com)

There are many successful entrepreneurs today that publish articles, blogs, and even books on their strategies of achievement. We can definitely glean from their advice, but in reality, there is no handbook on how to be a successful entrepreneur. Each magnate, from their own prospective industry, has climbed their way to the top with their own inertia, motivation, and effort. The question then becomes:

How does one become a wealthy entrepreneur?

If you have the desire and determination to make millions then, like other budding entrepreneurs, you’ve taken the first step. But after you’ve made the decision to make serious money, how do you know if you’re making the right moves to make abundance stick?

Ben Franklin says, “An Investment in Knowledge always pays the best interest.”

And Frank Clarks states, “The more you learn, the more you earn.”

Education is Key

At Paradigm Life, we first and foremost focus on education. Our education is different from other financial firms; we concentrate on teaching our clients about how the Infinite Banking Concept and Whole Life Insurance is used by wealthy entrepreneurs and businessmen to achieve the financial success and freedom they’re looking for.

Infinite banking allows you to be your own banker. This means that instead of going to a bank to finance homes, cars, or businesses (to name a few), finance items with your whole life insurance policy.

Properly structured Whole Life Insurance earns interest, has guaranteed growth, is free from the performance of the stock market, and provides ample tax benefits. These features provide the living benefits that make a Whole Life Policy an asset. Also, doubling the worth of your life insurance as an asset, is the fact that it comes with a death benefit.

When you borrow against your life insurance policy to reinvest in other performing assets, you are tapping into the very same velocity of money that banks use to make money. Instead of the bank taking your dollar, lending out 90% of it and keeping 10% on reserve; you as an infinite banker borrow your own money, and earn interest on your own money. You are removing the bank from your equation.

Infinite Banking makes for Wealthy Entrepreneurs

As an entrepreneur, not only is banking on yourself smart, it helps create a steady money-strategizing system which can build wealth.

If an entrepreneur knows his money is safe, he can make accurate financial decisions that disengage fear and promote profit. Whole Life Insurance and the Infinite Banking Concept provides exactly what an entrepreneur needs to be wealthy.

For more information, talk to a Paradigm Life Wealth Strategist.

 

Read: How to Permanently Strengthen Your Business

Watch: Life Insurance: The “And” Asset

Listen: Entrepreneurs: Leaders of the Future

 

High Cost of College: Time to Bank on Yourself

High Cost of College: Time to Bank on YourselfThree undergraduate degrees and a Master’s degree, and yet what I mainly learned is that I have now accrued serious debt. And in truth, regardless of the degree count, even one can put you financially ‘under’. The cost of College is increasingly high.

Our society prides itself on the many institutions that promote ‘higher’ education. We are groomed as soon as we begin school that our ultimate education goal should be college. And that achieving a college degree, or degrees, will most assuredly result in a career with a high paying job.

I have been fortunate enough to have had careers within some of the fields I studied. I am thankful to be able to write content for a career; much to do with my degree(s). I empathize with individuals who are still waiting to have a career that resembles their passion and dedication to higher education.

I will admit, there have been times in years past that I felt warm fuzzies of pride being able to say that I have a Master’s degree. However, as of late, my ‘warm fuzzy’ feelings are replaced by anxiety in the realization that I have insurmountable student debt.

According to the Bureau of Labor, recent statistics provide that about 284,000 of college graduates are working at or below the minimum wage rate, and that student debt has reached 1.2 trillion dollars (bls.gov); it begs the question, what’s the point?

What colleges (and even preliminary education) are neglecting to teach is how to balance the financial requirements that come with a College degree (or degrees).

There is much more involved than simply attending classes, passing exams and hoping to graduate on time. Additional concerns are job availability, appropriate pay, and the ever present student loans; no longer eligible for deferment.

Unfortunately, what college doesn’t provide is an education on how to survive the debt you are accruing every year you study.

College Costs over Time; the Numbers are Alarming

What you will pay for higher education this year will more than likely, be more than the median salary of most post graduate jobs available by the time you graduate.

Kind of puts a damper on the desire to choose the college you have always hoped to attend. Even choosing an institution solely by affordability can seem out of the picture.

The numbers for the 2014-15 Academic year are staggering. Private Colleges will cost you over $30K a year, public colleges don’t fare much better at nearly $10K a year. And heaven forbid you are a student hoping to attend college out of state.  Even the usually more economical route of a public university will cost you nearly $23K a year (Collegeboard.com).

High Cost of College: Time to Bank on Yourself

 

 

 

 

It wasn’t always this expensive, but in the last 30 years, the cost of 4 year institutions has increased substantially: by 105% since 1981.

High Cost of College: Time to Bank on Yourself

 

 

 

 

For Gen- X’ers, generations before were under the $10K mark for annual tuition costs. Those of us who attended Universities in our twenties experienced an increase of nearly $8K over what our parents paid annually; and it has just gotten worse.

How can we continue to promote higher education to future high school graduates knowing it is only going to cause them to start their adult lives and initial careers with nothing more than a book of debt?

Yes, there are many benefits to a college education, however there has got to be a way to handle the financial obligation it requires.

Is there a better way?

Bank on Yourself through the Infinite Banking Concept

The Infinite Banking Concept in short, is utilizing a Whole Life Insurance policy to fuel financial needs, (such as exuberant tuition costs), from the cash value that is afforded you as a Whole Life policy holder.

Just as there are academic counselors to walk you through the classes needed to graduate. There is access to financial education that can assist you in structuring your finances so that you are able to handle such expenses.

Infinite Banking allows you to take control of your personal economy, to know where your money is going, and be able to mitigate (if not completely eliminate) student debt.

Banking on yourself allows you to forget traditional avenues of borrowing from family and banks to overcome college costs. And definitely don’t adhere to the rhetoric that faithfully paying high interest yielding student loans faithfully for twenty years will eventually wipe them out.

I am grateful for this option and for the free financial education that is available through Paradigm Life. What my higher education didn’t teach me about finances, The Infinite Banking Concept has.

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Read:    Discover How Life Insurance is a Cash Flow Resource

Watch:  How to Safely Fund Your Kid’s College

Listen:   Determining Capital Value

What is the definition of Cash Flow Banking?

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What is the definition of Cash Flow Banking?

Cash Flow Banking is a concept that allows an individual to capture the opportunity cost of their dollars, instead of giving it to the bank. Many people like to debate that Cash Flow Banking is a scam because the most commonly used vehicle for Cash Flow Banking is dividend paying Whole Life Insurance.

If you want to nitpick about it, the Cash Flow Banking concept can be used with multiple financial vehicles – even a standard checking account – but Whole Life Insurance is used because it’s safe and financially strategic.

Cash Flow Banking with Whole Life Insurance

Whole Life Insurance delivers a win-win situation for individuals wanting to implement the Cash Flow Banking Concept. Most people want to take care of their family after they die, so, they buy term life insurance. Individuals opt for term and overlook Whole Life Insurance just because the premiums are high.

In defense of those who are unaware of the living benefits of a Whole Life Policy, they’re right payments are high. If you don’t properly build or use your Whole Life Policy it’s expensive and becomes a waste of money. But that is not the point of a Whole Life Policy.

A Whole Life Policy is like a savings account that provides liquidity, steady rate of return, security, and tax-benefits. Whole Life Insurance is an asset.

The wealthy have used Whole Life Policy Insurance for centuries. Famous businessmen like Walt Disney and Ray Kroc both supplemented their entrepreneurial visions with their whole life policy.

Cash Flow Banking in Detail

Mutually owned Life Insurance Companies use policy owner’s death benefit as collateral, which is what allows an individual to receive a cash flow, or infinitely bank.

Central banks make money because they lend depositor’s money to other individuals with an interest rate. This interest rate brings in the bank’s profits.

What Cash Flow Banking does is give you the profit from the interest rate when you borrow against your policy to finance anything of your choosing – home buying, business start-ups, cars, college. Anything that you would typically turn to a bank for, you turn to the Cash Value in your policy for.

Benefits of Cash Flow Banking

Cash Flow Banking provides an individual with flexibility and the opportunity to build lasting wealth. Whole Life Policy premiums do not reflect any scam or excess commission given to the insurance agents. The premiums strictly represent how much a person would like to Cash Flow Bank with.

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Infinite 101

 

 

 

For more information about Cash Flow Banking, speak with a Paradigm Life Wealth Strategist.

Read: Powerful Cash Management Strategies

Watch: Preparing for Your Complete Retirement Journey

Listen: Exploring Mutual Insurance Dividends